FREEMONT CORPORATION MACHINING DEPARTMENT Cost Control Report For the Month Ended June 30 Static Budget Actual Static Budget Variance Machine-hours 37,500 34, 500 nts Direct labour wages $ 87, 700 $ 79, 100 $ 8,600 U Supplies 24, 200 18, 400 5,800 U Maintenance 122, 000 126,000 -4,000 U Utilities 17,000 14, 800 2, 200 U eBook Supervision 39, 200 39, 200 Depreciation 80, 600 80, 600 0 Print Total $370, 700 $358, 100 $ 12, 600 U References "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.)