3 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 Budget Actual Static Budget Variance its Machine-hours 38, 600 35 , 500 Direct labour wages $ 86 , 100 $ 81, 650 4 , 450 U 02:42:15 Supplies 23 , 450 21 , 300 2, 150 U Maintenance 139, 800 136, 550 3, 250 U Utilities 16, 300 15 , 750 550 U Supervision 39 , 000 39 , 000 0 Depreciation 81, 000 81, 000 0 OK Total $385, 650 $375, 250 $ 10, 400 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 $93,950; the fixed component of the budgeted utilities cost $12,200.3 Everything is Direct labour wages and supplies are variable costs; supervision and depreciation are fixed costs; and maint mixed costs. The fixed component of the budgeted maintenance cost is $93,950; the fixed component of the budgeted utilities cost is $12,200. Required: 1. This part of the question is not part of your Connect assignment. :42:02 2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the machining department. (Round your intermediate calculations to 2 decimal places. 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 Corporation-Machining Department Comprehensive Performance Report For the Month Ended June 30 Actual Flexible Volume Variance Planning Results Flexible Budget Variance Budget Budget Machine-hours 38,600 35,500 Direct labor wages $ 86, 100 $ 81,650 Supplies 23,450 21,300 Maintenance 139,800 136,550 Utilities 16,300 15,750 Supervision 39,000 39,000 Depreciation 81,000 81,000 Total $ o