Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please provide the answer. Frank Weston, supervisor of the Freemont Corporation's Machining Department, was visibly upset after being reprimanded for his department's poor performance over

image text in transcribed

image text in transcribed

image text in transcribed

please provide the answer.

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 CORPORATIONMACHINING DEPARTMENT Cost Control Report For the Month Ended June 30 Static Budget Variance $ Machine-hours Direct labour wages Supplies Maintenance Utilities Supervision Depreciation Total Actual 37,200 $ 86,500 23,600 119,000 16,700 40,000 82,000 $367,800 Static Budget 35,200 $ 80,000 19,300 122,000 14,600 40,000 82,000 $357,900 6,500 U 4,300 U -3,000 U 2,100 U DO $ 9,900 U "I just can't 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." 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 $83,000; the fixed component of the budgeted utilities cost is $11,100. Required: 1. This part of the question is not part of your Connect assignment. 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.) Freemont Corporation Machining Department Comprehensive Performance Report For the Month Ended June 30 Actual Flexible Results Flexible Budget Variance Budget 37,200 37,200 $ 86,500 23,600 Volume Variance Machine-hours Planning Budget 35,200 $ 80,000 Direct labor wages Supplies 19,300 AA Freemont Corporation Machining Department Comprehensive Performance Report For the Month Ended June 30 Flexible Flexible Budget Variance Budget 37,200 Actual Results Volume Variance Machine-hours Direct labor wages Supplies Maintenance 37,200 $ 86,500 23,600 119,000 16,700 Planning Budget 35,200 $ 80,000 19,300 122,000 14,600 40,000 82,000 Utilities Supervision Depreciation Total 40,000 82,000 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems A Practictioner Emphasis

Authors: Cynthia D. Heagy, Constance M. Lehmann

10th Edition

1891002821, 9781891002823

More Books

Students also viewed these Accounting questions

Question

6.10 a. Find a z o such that P(-z

Answered: 1 week ago

Question

What is A free product or gift?

Answered: 1 week ago