Item5

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Item 5

Frank Weston, supervisor of the Freemont Corporations Machining Department, was visibly upset after being reprimanded for his departments poor performance over the prior month. The departments cost control report is given below:

FREEMONT CORPORATIONMACHINING DEPARTMENT
Cost Control Report
For the Month Ended June 30
	Actual			Static Budget			Static Budget Variance
Machine-hours		39,320			36,100
Direct labour wages	$	86,100		$	83,030		$	3,070	U
Supplies		23,870			21,660			2,210	U
Maintenance		142,800			139,610			3,190	U
Utilities		17,020			16,410			610	U
Supervision		40,200			40,200			0
Depreciation		82,200			82,200			0
Total	$	392,190		$	383,110		$	9,080	U

I just cant 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 $96,290; the fixed component of the budgeted utilities cost is $12,800.

Required:

1. This part of the question is not part of your Connect assignment.

2. Complete the performance report that will help Mr. Westons 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.)