Westmont Corporation uses a comprehensive budgeting system for planning and control purposes. While departmental supervisors are happy with the system, the factory manager is not. A report for the company's Assembly Department for 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 15,000 Planning Budget Variances 20,000 $ 11,400 42,000 $ 12,000 45,000 $ 600 F 3,000 F 119,000 142,500 23,500 F 85,900 110,000 $ 368,300 80,000 110,000 5,900 U 0 $ 389,500 $ 21,200 F After receiving this report, the supervisor of the Assembly Department stated, "These reports are super. It makes me feel 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 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. Note: 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 Flexible Budget Machine-hours (q) 15,000 Supplies $ 11,400 Scrap 42,000 Indirect materials Wages and salaries Equipment depreciation Total $ 368,300 119,000 85,900 110,000 Planning Budget 20,000 $ 12,000 45,000 142,500 80,000 110,000 $ 389,500