Chapter 9, Problem 25P

To determine

Flexible budget performance report: A flexible budget shows the true difference between the actual cost and revenue and budgeted cost and revenue. The budgeted value is adjusted by preparing a flexible budget which is prepared based on actual level of activity.

1. Evaluate the usefulness of the reports to the company.

2. The changes required to be made in the reports to give better insight into how well department supervisors are controlling costs.

3. The preparation of a new performance report for the quarter.

4. How well were costs controlled in the Assembly Department in March.