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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 42,000 40,000 Variances Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total $ 94,800 30,300 26,200 23,900 59,000 103,000 $ 337,200 $ 91,600 27,200 23,700 22,300 59,000 103,000 $326,800 $ 3,200 U 3,100 U 2,500 V 1,600 V 0 0 $10,400 V "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 $19,300; the fixed component of the budgeted utilities cost is $14,600 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 (i.e., zero variance). Input all amounts as positive values.) 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 (i.e., zero variance). Input all amounts as positive values.) Freemont Corporation-Machining Department Flexible Budget Performance Report For the Month Ended June 30 Actual Flexible Results Budget 42,000 Machine-hours Planning Budget 40,000 Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total $ 94,800 30,300 26,200 23,900 59,000 103,000 $ 337,200 $ 91,600 27,200 23,700 22,300 59,000 103,000 $ 326,800

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