Sue Jaski, supervisor of the Karaki Corporations Machining Department, was visibly upset after being reprimanded for her departments poor performance over the prior month. The departments cost control report is given below:

Karaki CorporationMachining Department Cost Control Report For the Month Ended June 30
	Planning Budget		Actual Results		Variances
Machine-hours		40,000		42,000
Direct labor wages	$	85,600	$	87,000	$	1,400	U
Supplies		25,200		27,800		2,600	U
Maintenance		21,400		21,400		0
Utilities		20,100		19,900		200	F
Supervision		54,000		54,000		0
Depreciation		93,000		93,000		0
Total	$	299,300	$	303,100	$	3,800	U

I just cant understand all the red ink, Jaski 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 $17,300; the fixed component of the budgeted utilities cost is $14,100.

Required:

2.

Complete the performance report that will help Ms. Jaskis superiors assess how well costs were controlled in the Machining Department. (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. Round "variable rates" to 4 decimal places.)

Karaki CorporationMachining Department
Flexible Budget Performance Report
For the Month Ended June 30
	Planning Budget	Activity Variances		Flexible Budget	Spending Variances		Actual Results
Direct labor wages	$85,600						$87,000
Supplies	25,200						27,800
Maintenance	21,400						21,400
Utilities	20,100						19,900
Supervision	54,000						54,000
Depreciation	93,000						93,000
Total	$299,300			$0			$303,100