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:

"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 supplie 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 $$96,680$; the fixed component of the budgeted utilities cost $$12,900.$