Several years ago, Westmont Corporation developed a comprehensive budgeting system for planning and control purposes. While...

Transcribed Image Text:

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: Machine-hours Variable costs: Supplies Assembly Department Cost Report For the Month Ended March 31 Actual Planning Results Budget 15,000 20,000 Scrap Indirect materials Fixed costs: Wages and salaries Equipment depreciation Total cost $ 10,500 $ 11,100 $ 37,800 40,500 108,200 129,000 Variances 600 F 2,700 F 20,800 F 82,300 77,000 107,000 107,000 $345,800 $364,600 $18,800 F 5,300 U 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. 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.) Machine-hours (q) Supplies Scrap Indirect materials Wages and salaries Equipment depreciation Total Actual Results $ 15,000 10,500 37,800 108,200 82,300 107,000 $ 345,800 Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 Flexible Budget Planning Budget $ 20,000 11,100 40,500 129,000 77,000 107,000 $364,600 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: Machine-hours Variable costs: Supplies Assembly Department Cost Report For the Month Ended March 31 Actual Planning Results Budget 15,000 20,000 Scrap Indirect materials Fixed costs: Wages and salaries Equipment depreciation Total cost $ 10,500 $ 11,100 $ 37,800 40,500 108,200 129,000 Variances 600 F 2,700 F 20,800 F 82,300 77,000 107,000 107,000 $345,800 $364,600 $18,800 F 5,300 U 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. 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.) Machine-hours (q) Supplies Scrap Indirect materials Wages and salaries Equipment depreciation Total Actual Results $ 15,000 10,500 37,800 108,200 82,300 107,000 $ 345,800 Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 Flexible Budget Planning Budget $ 20,000 11,100 40,500 129,000 77,000 107,000 $364,600

Answer rating: 100% (QA)

ANSWER ATTACHED IMAGE Machine Hours g Supplies Scrap Indirect Mate... View the full answer