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 | |||||||
Actual Results | Planning Budget | Variances | |||||
Machine-hours | 25,000 | 30,000 | |||||
Variable costs: | |||||||
Supplies | $ | 5,700 | $ | 6,300 | $ | 600 | F |
Scrap | 15,400 | 16,500 | 1,100 | F | |||
Indirect materials | 50,600 | 57,000 | 6,400 | F | |||
Fixed costs: | |||||||
Wages and salaries | 63,100 | 61,000 | 2,100 | U | |||
Equipment depreciation | 91,000 | 91,000 | – | ||||
Total cost | $ | 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. 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?
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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 Actual Planning Results Budget 25,000 30,000 Variances Machine-hours $ 5,700 $ 15,400 50,600 6,300 16,500 57,000 $ 600...
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 Actual Results Planning Budget Variances Machine-hours 15,000 20,000 Variable costs: Supplies $ 9,900 $ 10,500 $ 600 F...
HELP WITH REQUIREMENT 3 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 Actual Results Planning Budget Variances Machine-hours 15,000 20,000 Variable costs: Supplies $ 8,700 $...
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 Actual Results Planning Budget Variances Machine-hours 25,000 30,000 Variable costs: Supplies $ 7,200 $ 7,800 $ 600 F...
A report for Easterly Corporation's production department for the month of May follows: Production Department Cost Report For the Month Ended May 31 Actual Results Planning Budget Variances Machine-hours 25,000 30,000 Variable costs: Supplies $ 5,700 $ 6,300 $ 600 F Scrap 15,400 16,500 1,100 F Indirect materials 50,600 57,000 6,400 F Fixed costs: Wages and salaries 63,100 61,000 2,100 U Equipment depreciation 91,000 91,000 – Total cost $ 225,800 $ 231,800 $ 6,000 F After receiving a copy of...
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 Actual Results Planning Budget Variances
Machine-hours 15,000 20,000 Variable costs: Supplies $ 11,400 $
12,000 $ 600 F...
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: eBook Assembly Department Cost Report For the Month Ended March 31 Actual Planning Results Budget Machine-hours 25,000 30,eee Variances Print References 7,200 $ 22,400 68,689 7,800 $ 600...
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 Actual Results Planning Budget Variances Machine-hours 25,000 30,000 Variable costs: Supplies $ 8,400 $ 9,000 $ 600 F...
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: See bottom of question
After receiving a copy of this cost report, the supervisor of
the Assembly Department stated, “These reports are super. It makes
me feel really...
Managerial Accounting Help!
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 Montl March 31 Planning Budget 20,000 Actual Variances Results Machine-hours 15,000 Variable costs: Supplies Scrap Indirect materials $11,400 12,000...