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 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 $$92,000$; the fixed component of the

budgeted utilities cost is $$11,700.$