Help Problem 9-26 Critiquing a Cost Report; Preparing a Performance Report [LO9-1, LO9-2, Lo9-3, LO9-4, LO9-6) Frank Weston, supervisor of th department's poor performance over the prior month. The d e Freemont Corporation's Machining Department, was visibly upset after being reprimanded for his epartment's cost control report is given below: hining Cost control Report For the Month Ended June 30 Actual Pl anning 42,000 40,000 Direct labor wages $ 92,200 89,200 $3,00o U 29,300 25,600 23,300 57,000 99,000 26,4002,900 U 23,300 2,300 U 21,900 1,400 u 57,000 99,000_ Utilities Supervision Total 326,400 $316, 800 $9,600 U "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 $18,500; the fixed component of the budgeted utilities cost is $14,400