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 25,000 Planning Budget Variances 30,000 $ 5,700 $ 6,300 $ 600 F 15,400 16,500 1,100 F 50,600 57,000 6,400 F 63,100 61,000 2,100 U 91,000 91,000 $ 225,800 $ 231,800 $ 6,000 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. Complete the new performance report for the quarter, based on Flexible Budget Performance approach. 2. Were costs well controlled in March? Complete this question by entering your answers in the tabs below. 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 Machine-hours (q) 25,000 Supplies $ 5,700 2 Scrap 15,400 2 Indirect materials 50,600 U Wages and salaries 63,100 บ Equipment depreciation 91,000 None Total $ 225,800 U Flexible Budget Planning Budget 30,000 F $ 6,300 F 16,500 F 57,000 None 61,000 None 91,000 $ 231,800

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Chapter1: Financial Statements And Business Decisions
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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
25,000
Planning
Budget
Variances
30,000
$ 5,700
$ 6,300
$ 600 F
15,400
16,500
1,100 F
50,600
57,000
6,400 F
63,100
61,000
2,100 U
91,000
91,000
$ 225,800 $ 231,800 $ 6,000 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. Complete the new performance report for the quarter, based on Flexible Budget Performance approach.
2. Were costs well controlled in March?
Complete this question by entering your answers in the tabs below.
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
Machine-hours (q)
25,000
Supplies
$
5,700
2
Scrap
15,400
2
Indirect materials
50,600
U
Wages and salaries
63,100
บ
Equipment depreciation
91,000
None
Total
$ 225,800
U
Flexible
Budget
Planning
Budget
30,000
F
$
6,300
F
16,500
F
57,000
None
61,000
None
91,000
$ 231,800
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 25,000 Planning Budget Variances 30,000 $ 5,700 $ 6,300 $ 600 F 15,400 16,500 1,100 F 50,600 57,000 6,400 F 63,100 61,000 2,100 U 91,000 91,000 $ 225,800 $ 231,800 $ 6,000 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. Complete the new performance report for the quarter, based on Flexible Budget Performance approach. 2. Were costs well controlled in March? Complete this question by entering your answers in the tabs below. 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 Machine-hours (q) 25,000 Supplies $ 5,700 2 Scrap 15,400 2 Indirect materials 50,600 U Wages and salaries 63,100 บ Equipment depreciation 91,000 None Total $ 225,800 U Flexible Budget Planning Budget 30,000 F $ 6,300 F 16,500 F 57,000 None 61,000 None 91,000 $ 231,800
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