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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: Ansembly Department Cost Report Yor the Month Ended March 31 Actual Planning Results Budget Variances Machine-hours 25,000 30,000 Variable contai Supplies $ 7,500 $ 8,100 $ 600 Serap 23,800 25,500 1,700 Indirect materials 72,200 84,000 11,800 Pixed contai Wages and salaries 70,300 67,000 3,300 U Equipment depreciation 97,000 97.000 0 otal cost $ 270,000 $ 281,600 $ 10,800 P 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. Activity Variances Machine-hours (9) Supplies Scrap Indirect materials Wages and salaries Equipment depreciation Total Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 Actual Revenue and Spending Flexible Results Variances Budget 25,000 $ 7,500 U 23,800 U 72,200 U 70,300 97,000 $ 270,800 Planning Budget 30,000 $ 8,100 25,500 84,000 67,000 97,000 $ 281,600

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