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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 Machine-hours Variable costs: Supplies Scrap Indirect materials Fixed costs: Wages and salaries Equipment depreciation Total cost Actual Results Planning Budget Variances 15,000 20,000 $ 9,600 33,600 97,400 78,700 104,000 $ 323,300 $ 10,200 36,000 115,500 74,000 104,000 $ 339,700 $ 600 2,400 18,100 F 4,700 F 0 F U $ 16,400 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.

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 Machine-hours Variable costs: Supplies Scrap Indirect materials Fixed costs: Wages and salaries Equipment depreciation Total cost Actual Results Planning Budget Variances 15,000 20,000 $ 9,600 33,600 97,400 78,700 104,000 $ 323,300 $ 10,200 36,000 115,500 74,000 104,000 $ 339,700 $ 600 2,400 18,100 F 4,700 F 0 F U $ 16,400 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 Machine-hours Variable costs: Supplies Scrap Indirect materials Fixed costs: Wages and salaries Equipment depreciation Total cost Actual Results Planning Budget Variances 15,000 20,000 $ 9,600 33,600 97,400 78,700 104,000 $ 323,300 $ 10,200 36,000 115,500 74,000 104,000 $ 339,700 $ 600 2,400 F 18,100 F 4,700 F 0 U $ 16,400 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.
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: Assembly Department Cost Report For the Month Ended March 31 Machine-hours Variable costs: Supplies Scrap Indirect materials Fixed costs: Wages and salaries Equipment depreciation Total cost Actual Results Planning Budget Variances 15,000 20,000 $ 9,600 33,600 97,400 78,700 104,000 $ 323,300 $ 10,200 36,000 115,500 74,000 104,000 $ 339,700 $ 600 2,400 F 18,100 F 4,700 F 0 U $ 16,400 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.
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 $ 9,600 33,600 97,400 78,700 104,000 $ 323,300 Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 < Required 2 Flexible Budget Required 4 > Planning Budget 20,000 $ 10,200 36,000 115,500 74,000 104,000 $ 339,700
Transcribed Image Text: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 $ 9,600 33,600 97,400 78,700 104,000 $ 323,300 Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 < Required 2 Flexible Budget Required 4 > Planning Budget 20,000 $ 10,200 36,000 115,500 74,000 104,000 $ 339,700
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