M6: Lesson 3 Application Exercise #2 A Saved Help Save & Exit Submit Check my work 2 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: 0.5 points Freemont Corporation Machining Department Cost Control Repart For the Month Ended June 30 Actual Planning Results Budget Variances Machine-hours 42,000 40,000 eBook Print Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total $ 75,300 22,00 22, BOO 20,500 44,000 73,000 $ 258,400 $ 73,600 21,200 20,500 19,300 44,000 73,000 $251, 600 $1,700 U 1,600 U 2,300 0 1,200 V 0 0 $ 6,800 U References "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 $13,300; the fixed component of the budgeted utilities cost is $13,100. Required: 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.) M6: Lesson 3 Application Exercise #2 Saved Help Save & Exit Submit Check my work 2 enriciency last month inan it has ever worked perore, insteaa, ne 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." 0.5 points 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 $13,300; the fixed component of the budgeted utilities cost is $13,100 Required: 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 (.e., zero variance). Input all amounts as positive values.) eBook Print Freemont Corporation-Machining Department Flexible Budget Performance Report For the Month Ended June 30 Actual Revenue and Spending Flexible Results Variances Budget 42,000 42,000 References Activity Variances Planning Budget 40,000 Machine-hours S S $ Direct labor wages Supplies 1.980 F 540U U 77,280 $ 22,260 75,300 s S 22,800 22,800 20,500 44,000 3,680U 1,060U LU U Maintenance Utilities Supervision Depreciation Total 73,600 21,200 20,500 19,300 44,000 U U U U tu 73,000 S 258,400 F IF U 73,000 $ 251,600
