25 Frank Weston, supervisor of the Freemont Corporation's Machining Department, was visibly upset after being reprimanded for his department's poor performance over the prior month. The department's cost control report is given below: Freemont Corporation-Machining Department Cost Control Report For the Month Ended June 30 Static Static Budget Actual Budget Variance Machine- 38,000 hours 35,000 Direct labour wages $ 86,100 $ 80,500 $ 5,600 U Supplies 23, 100 21,000 2,100 U Maintenance 137, 300 134,000 3,300 U Utilities 15,700 15, 200 500 U Supervision 38,000 38,000 0 Depreciation_80,000 80,000 0 Total $380,200 $368,700 $ 11,500 U "I just can't understand all of these unfavourable variances," Weston complained to the supervisor of another department. "When the boss called me in, I thought he was going to give me a pat on the back because I know for a fact that my department worked more efficiently last month than it has ever worked before. Instead, he tore me apart. I thought for a minute that it might be over the supplies that were stolen out of our warehouse last month. But they amounted to only a couple of hundred dollars, and just look at this report. Everything is unfavourable." Direct labour wages and supplies are variable costs; supervision and depreciation are fixed costs; and maintenance and utilities are mixed costs. The fixed component of the budgeted maintenance cost is $92,000; the fixed component of the budgeted utilities cost is $11,700. Required: 1. This part of the question is not part of your Connect assignment. 2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the Machining Department. (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.) Freemont CorporationMachining Department Comprehensive Performance Report For the Month Ended June 30 Actual Flexible Budget Flexible Volume Variance Results Variance Budget 38,000 Planning Budget 35,000 Machine-hours Direct labour wages Supplies Maintenance Utilities Supervision Depreciation 2 $ 86,100 23,100 137,300 15,700 38,000 80,000 $ 380,200 $80,500 21,000 134,000 15,200 38,000 80,000 $ 368,700 Total $ 0