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: Machine-hours Direct labour wages Supplies Maintenance Utilities Supervision Depreciation Total FREEMONT CORPORATION-MACHINING DEPARTMENT Cost Control Report For the Month Ended June 30 Actual 40,160 Static Budget 36,800 Static Budget Variance $ 86,100 24,360 $ 84,640 $ 1,460 U 22,080 2,280 U 146,300 143,180 3,120 U 17,860 17,180 41,600 41,600 680 U 83,600 $399,820 83,600 $392,280 $ 7,540 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 $99,020; the fixed component of the budgeted utilities cost is $13,500. Required: 1. This part of the question is not part of your Connect assignment.