Problem 9-25 Critiquing a Variance Report; Preparing a Performance Report [LO9-1, LO9-2, LO9-3, L09. 4, LO9-6) 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 Results Budget Machine - hours 15,000 20,000 Variances 10,500 $ 600 F 37,500 2,500 F 120,000 19,690 F Variable costs: Supplies $ 9,900 $ Scrap 35,000 Indirect materials 101,090 Fixed costs: Wages and salaries 79,989 Equipment 105,000 depreciation Total cost $ 339,800 $ 75,000 4,900 u 105,000 348,000 $17,200 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. any's president is needed to give better insided on Flexible 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 - www 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 prepare a new performance report for the quarter, (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 Flexible Budget Actual Results Planning Budget 20,000 Machine-hours (a) 15,000 Supplies $ $ Indirect materials Wages and salaries 9,900 35,000 101,000 79,900 105,000 $ 330,800 10,500 37,500 120,000 75,000 105,000 348,000 Equipment depreciation Total $