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Several years ago, Westmont Corporation developed a comprehensive budgeting system for planning and control purposes. While departmental supervisors have been happy with the system, the factory manager has expressed considerable dissatisfaction with the information being generated by the system A report for the company's Assembly Department for the month of March follows: Assembly Department Cost Report For the Month Ended March 31 Actual Planning Budget Variances 25,000 30,000 Results Machine-hours $ 6,900 $7,500 $ 600 21,000 22,500 1,500 65,000 75,000 10, odo Variable costs Supplies Scrap Indirect materials Fixed costs: Wages and salaries Equipment depreciation Total cost 67,900 65,000 2,900 U 95,000 95.000 $255,800 $265,000 $2,200 After receiving a copy of this cost report, the supervisor of the Assembly Department stated. "These reports are super. It makes me feel really good to see how well things are going in my department. I can't understand why those people upstales complain so much about the reports. For the last several years, the company's marketing department has chronically failed to meet the sales goals expressed in the company's monthly budgets. Required: 1. The company's president is uneasy about the cost reports, identity at least two reasons. 2. What kind of reports should be used to give better insight into how well departmental supervisors are controlling costs? 3. Complete the new performance report for the quarter, based on Flexible Budget Performance approach 4. Were costs well controlled in March? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Complete the new performance report for the quarter, based on Flexible Budget Performance approach. (Do not round your inte calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (le variance). Input all amounts as positive values.) Westmont Corporation Assembly Department Floxible Budget Performance Report For the Month Ended March 31 Flexible Budget Actual Results 25,000 Planning Budget 30,000 Machine-hours (9) $ Supplies Scrap Indirect materials Wages and salaries Equipment depreciation Total $ 6,900 21,000 65,000 67.900 95,000 $ 255,800 7.500 22,500 75,000 65,000 95,000 $ 265.000

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