Tom Kemper is the controller of the Wichita manufacturing facility of Prudhom Enterprises, Inc. The annual cost control report is one of the many reports that must be filed with corporate headquarters and is due at corporate headquarters shortly after the beginning of the New Year. Kemper does not like putting work off to the last minute, so just before Christmas he prepared a preliminary draft of the cost control report. Some adjustments would later be required for transactions that occur between Christmas and New Year's Day. A copy of the preliminary draft report, which Kemper completed on December 21, follows: Wichita Manufacturing Facility Cost Control Report December 21 Preliminary Draft Actual Flexible Spending Results Budget Variances Labor-hours Direct labor Power Supplies Equipment depreciation 343,000 332,000 11,000 U Supervisory salaries273,000275,000 2,000 F Insurance Industrial engineering 189,000 210,000 21,000 F Factory building lease 60,000 60,000 Total expense 18,000 18,000 326,000 $ 324,000 $ 2.000 u 19,750 18,000 1,750 U 05,000 99,000 6,000 U 37,000 37,000 $1,352,750 $1,355,000 $ 2,250 F