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Please only answer it if you know correct answers and please keep the same formatting. Thank you! Frank Weston, supervisor of the Freemont Corporation's Machining
Please only answer it if you know correct answers and please keep the same formatting. Thank you!
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. Freemont Corporation-Machining Department Cost Control Report For the Month Ended June 30 Actual Planning Results Budget Variances Machine-hours 42, ege 40, 090 Direct labor wages $ 94, 890 $ 91, 690 $ 3,208 U Supplies 30,308 27, 208 3,109 U Maintenance 26, 200 23, 790 2,509 U Utilities 23,908 22, 308 1, 608 U Supervision 59,808 59, 098 Depreciation 183, 208 193, 098 Total $ 337, 208 $ 326, 808 $ 10, 408 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 $19.300; the fixed component of the budgeted utilities cost is $14.600. Required: 2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the machining department. (Do not round your Intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (L.e., zero variance). Input all amounts as positive values.) Freemont Corporation-Machining Department Flexible Budget Performance Report For the Month Ended June 30 Actual Flexible Planning Results Budget Budget Machine-hours 42,000 40,000Utilities 23,908 22, 390 1, 689 U Supervision 59, 090 59, 098 Depreciation 103, 909 103, 090 Total $ 337, 208 $ 326, 890 $ 10,409 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 $19.300; the fixed component of the budgeted utilities cost is $14.600. Required: 2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the machining department. (Do not round your Intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (Le., zero verlance). Input all amounts as positive values.) Freemont Corporation-Machining Department Flexible Budget Performance Report For the Month Ended June 30 Actual Flexible Planning Results Budget Budget Machine-hours 42,000 40,000 Direct labor wages 94,800 91,600 Supplies 80,300 27.200 Maintenance 26,200 23.700 Utilities 23,900 22.300 Supervision 59,000 59,000 Depreciation 103,000 103,000 Total $ 337,200 $ $ 326.800Step by Step Solution
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