Questions

Frank Weston, supervisor of the Freemont Corporation's Machining Department, was visibly upset after being reprimanded for Is department's poor performance over the prior month. The department's cost control report is given below FREEPONT CORPORATION MACHINING DEPARTMENT poims Cost Control Report For the hench Ended June 32 Static Budget Scacic Budget efool Hacking-hours Direct labour neges 5 85,400 $ 72,200 4 4.203 4 29,400 5.009 U plaintenance 120,030 7.000 U BETENEnceS 16,980 14, 760 Supervision JP, 10G 35, 10 Depreciation Total $360, 100 "I just can't understand off of these unfourable variances." Weston complained to the supervisor of another department "When the boss called me in. I thought he was going to give me a put on the back because I know for a fact that my department worked more efficiently last month then it has over worked before. Instead. he fore me apart. I thought for a minute that it might be over the supplies That were stolen out of our warehouse lost money Out fitey amounted to only a couple of hundred dollars, and just look at this report Everything is unfavorable." Direct labour wages and supplies me wiviable costs, supervision and depreciation are fixed costs, and maintenance and unifies are mixed costs. The fixed component of the budgeted maintenance cost is $83,000, the fixed component of the budgeted antes coff is $11000 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 Planning Results Flexible Budget Varlance Budget Volume Variance Budget Machine-hours 38,300 36,300 Direct labor wages $ 83 400 79.200 Supplies 23 400 18.400 Maintenance 120,000 127 000 Utilnies 16,900 14 700 Supervision 39,100 39 100 Depreciation 81,900 81 900 Total