CH 9 Assignment 3 11.12 points Machine-hours Variable costs: Supplies Scrap Indirect materials Fixed costs: Wages and salaries Assembly Department Cost Report For the Month Ended March 31 Planning Budget 20,000 Actual Results Variances 15,000 $ 10,200 36,400 104,600 $ 10,800 39,000 $ 600 F 2,600 F 124,500 19,900 F 81,100 106,000 76,000 5,100 U 106,000 8 $ 338,300 eBook Equipment depreciation Total cost $ 356,300 $ 18,000 F 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 upstairs 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, identify 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. 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 intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 Actual Results Revenue and Spending Variances Machine-hours (q) 15,000 Supplies $ 10,200 Scrap Indirect materials Wages and salaries 38,400 104,600 Equipment depreciation Total 81,100 106,000 $ 338,300 Flexible Budget Activity Variances Planning Budget 20,000 $ 10,800 39,000 124,500 < Required 2 Required 4 > 76,000 106,000 $ 358,300 Saved