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 Variance Machine-hours Direct labour wages Supplies Maintenance Utilities Supervision Depreciation Total Actual 37,500 $ 87,700 24,200 122,000 17,000 39,200 80,600 $ 370,700 Static Budget 34,500 $ 79,100 18,400 126,000 14,800 39,200 80, 600 $358, 100 $ 8,600 V 5,800 U -4,000 U 2,200 U 0 0 $ 12,600 V "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 $94,000; the fixed component of the budgeted utilities cost is $10.400. 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. (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.) Planning Machine-hours Direct labor wages Answer is complete but not entirely correct. Freemont Corporation-Machining Department Comprehensive Performance Report For the Month Ended June 30 Actual Flexible Results Flexible Budget Variance Budget Volume Variance 37,500 37,500 $ 87,700 $ 1,825 U U $ 85,875 X $ 6,775 U 24,200 4,325 U 19,875 X 1,475 U 122,000 6,875 XF 128,875 X 2,875 kg 17,000 1,725 x | U 15,275 X 475 x || 39,200 None 39,200 0 None 80,600 None 80,600 0 None $370,700$ 1,000 X U U S 369,700 $ 11,600 U Budget 34,500 $ 79,100 18,400 126,000 14,800 Supplies Maintenance Utilities Supervision Depreciation Total 39,200 80,600 $ 358,100