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 CORPORATION-MACHINING DEPARTMENT Cost Contro1 Report For the Month Ended June 30 Static Budget Variance Static Budget 35, 200 $ 80,000 Actual Machine-hours Direct labour wages 37,200 $ 86,500 $4 4,300 U -3,000 U 2,100 U 6,500 U Supplies Maintenance 23,600 19,300 122,000 14,600 40, 000 119,000 Utilities 16,700 Supervision Depreciation 40,000 82,000 82,000 Total $367,800 $357,900 $ 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." 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.) 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 Results Flexible Planning Budget Flexible Budget Variance Volume Variance Budget Machine-hours 37,200 35,200 Direct labor wages 86,500 $ 80,000 Supplies 23,600 19,300 Maintenance 119,000 122,000 Utilities 16,700 14,600 Supervision 40.000 40,000 Depreciation 82,000 82,000 Total $

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Chapter1: Financial Statements And Business Decisions
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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 CORPORATION-MACHINING DEPARTMENT
Cost Contro1 Report
For the Month Ended June 30
Static Budget
Variance
Static Budget
35, 200
$ 80,000
Actual
Machine-hours
Direct labour wages
37,200
$ 86,500
$4
4,300 U
-3,000 U
2,100 U
6,500 U
Supplies
Maintenance
23,600
19,300
122,000
14,600
40, 000
119,000
Utilities
16,700
Supervision
Depreciation
40,000
82,000
82,000
Total
$367,800
$357,900
$
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."
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.)
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
Results
Flexible
Planning
Budget
Flexible Budget Variance
Volume Variance
Budget
Machine-hours
37,200
35,200
Direct labor wages
86,500
$ 80,000
Supplies
23,600
19,300
Maintenance
119,000
122,000
Utilities
16,700
14,600
Supervision
40.000
40,000
Depreciation
82,000
82,000
Total
$
Transcribed Image Text: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 CORPORATION-MACHINING DEPARTMENT Cost Contro1 Report For the Month Ended June 30 Static Budget Variance Static Budget 35, 200 $ 80,000 Actual Machine-hours Direct labour wages 37,200 $ 86,500 $4 4,300 U -3,000 U 2,100 U 6,500 U Supplies Maintenance 23,600 19,300 122,000 14,600 40, 000 119,000 Utilities 16,700 Supervision Depreciation 40,000 82,000 82,000 Total $367,800 $357,900 $ 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." 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.) 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 Results Flexible Planning Budget Flexible Budget Variance Volume Variance Budget Machine-hours 37,200 35,200 Direct labor wages 86,500 $ 80,000 Supplies 23,600 19,300 Maintenance 119,000 122,000 Utilities 16,700 14,600 Supervision 40.000 40,000 Depreciation 82,000 82,000 Total $
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