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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

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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 Actual Planning Results Budget Variances Machine-hours 42,000 40,000 Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total $ 83, 100 25,800 24,600 22,300 50,000 85,000 $ 290,800 $ 80,890 23,600 21,700 20,500 50,000 85,000 $281,600 $2,300 U 2,200 U 2,900 U 1,800 U $9,200 U "I just can't understand all of these unfavorable 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 only amounted to a couple of hundred dollars, and just look at this report, Everything is unfavorable." Direct labor 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 $15.700; the fixed component of the budgeted utilities cost is $13,700 Required: 2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the machining denartment (Round unur intermediate ralulations to 2 decimal nlaces Indicate the effect of each variance hy selecting "F" for Required: 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 (l.e., zero variance). Input all amounts as positive values.) Freemont Corporation Machining Department Flexible Budget Performance Report For the Month Ended June 30 Actual Revenue and Spending Flexible Results Variances Budget Activity Variances 42,000 42,000 Machine-hours Planning Budget 40,000 Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total $ 83,100 25,800 24,600 22,300 50,000 85,000 $ 290,800 $ 80,800 23,600 21,700 20,500 50,000 85,000 $ 281,600

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