Please prepare a performance report showing actual results, flexible budget, and

planning budget. Compute the spending variances $($actual results compared with

flexible budget$)$ and the activity variances $($flexible budget compared with planning

budget$).$ Indicate whether each of the variances is favorable $($F$)$ or unfavorable $($U$).$

Also, this problem only analyzes costs, so you only prepare the costs portion of

the worksheets and performance report, not revenue.

On the "analysis$-$worksheet" please prepare the flexible budget worksheet analysis, as I

show on parts $2$ and $3$ of the Coop Hairstyling online talks. Be sure to use the "abs"

and $"$if$"$ excel functions as I show. Link amounts and use formulas as I show in the talks.

On the "performance$-$rpt$"$ worksheet please prepare the flexible budget performance

report, as I show in part $4$ of the Coop Hairstyling online talks. Be sure to link amounts

from the worksheet analysis on the "analysis$-$worksheet" such that changes in the

worksheet analysis will automatically cause the performance report also to

update, as I show in the online talks.

This problem does not give the cost formulas, so you need to calculate the budgeted

variable cost per machine hour for direct labor, supplies, maintenance, and utilities.

For maintenance and utilities, you need to determine the total budgeted variable cost

before you can compute the budgeted variable cost per machine hour.

Be sure to clearly show your work for all of these, and use excel

formulas for computations.

Your work will be graded for both format and accuracy, please make your solution

professional in appearance. Format counts, both in the "real world" and here, please take

a few moments when you finish to clean it up$!$

Check figures

Spending Variances

:: Total costs, $$1,100$ favorable

Activity Variances:

:: Total costs, $$12,600$ unfavorable Frank Weston, supervisor of the Freemont Corporation's Machining Department, was upset after being reprimanded for his department's

poor performance over the prior month. The department's cost control report is given below:

"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 my department worked more efficiently last month than

ever before. Instead, he tore me apart. I thought for a minute 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 Frank Weston, supervisor of the Freemont Corporation's Machining Department, was upset after being reprimanded for his department's poor performance over the prior month. The department's cost control report is given below:

Fremont Corporation$-$Machining Department.

"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 my department worked more efficiently last month than ever before. Instead, he tore me apart. I thought for a minute 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 $$92,000$; the fixed component of the budgeted utilities cost is $$11,700.$

Required:

$$Evaluate the company's cost control report and explain why the variances were all unfavorable.

$$Using $$ Exhibit $9-8$ as your guide, prepare a performance report that will help Mr$.$ Weston's superiors assess how well costs were controlled in the Machining Department.