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 th 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 Actual Planning Results 15,000 Budget 20,000 Variances 11,400 42,000 119,000 $ 12,000 45,000 142,500 $ 600 F 3,000 F 23,500 F 85,900 110,000 $368,300 80,000 110,000 $389,500 $21,200 F 5,900 U 0 Total cost 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 I Show Transcribed Text ก ง с Westmont Corporation Assembly Department Flexible Budget Performance Report Actual Results Machine-hours (q) 15,000 Supplies $ 11,400 Scrap 42,000 Indirect materials 119,000 Wages and salaries 85,900 Equipment depreciation 110,000 Total $ 368,300 For the Month Ended March 31 Flexible Budget Planning Budget 20,000 $ 12,000 45,000 142,500 80,000 110,000 $ 389,500,
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 th 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 Actual Planning Results 15,000 Budget 20,000 Variances 11,400 42,000 119,000 $ 12,000 45,000 142,500 $ 600 F 3,000 F 23,500 F 85,900 110,000 $368,300 80,000 110,000 $389,500 $21,200 F 5,900 U 0 Total cost 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 I Show Transcribed Text ก ง с Westmont Corporation Assembly Department Flexible Budget Performance Report Actual Results Machine-hours (q) 15,000 Supplies $ 11,400 Scrap 42,000 Indirect materials 119,000 Wages and salaries 85,900 Equipment depreciation 110,000 Total $ 368,300 For the Month Ended March 31 Flexible Budget Planning Budget 20,000 $ 12,000 45,000 142,500 80,000 110,000 $ 389,500,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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 th
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
Actual
Planning
Results
15,000
Budget
20,000
Variances
11,400
42,000
119,000
$ 12,000
45,000
142,500
$ 600 F
3,000 F
23,500 F
85,900
110,000
$368,300
80,000
110,000
$389,500 $21,200 F
5,900 U
0
Total cost
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
I
Show Transcribed Text
ก
ง
с
Westmont Corporation
Assembly Department
Flexible Budget Performance Report
Actual
Results
Machine-hours (q)
15,000
Supplies
$
11,400
Scrap
42,000
Indirect materials
119,000
Wages and salaries
85,900
Equipment depreciation
110,000
Total
$ 368,300
For the Month Ended March 31
Flexible
Budget
Planning
Budget
20,000
$
12,000
45,000
142,500
80,000
110,000
$ 389,500,
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