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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 Freenont Corporation-Machining Departent Cost Control Report For the Month Ended June 30 Actual Results 42,000 S 85,700 26,800 25,200 22,900 52,000 89,000 $ 301,600 Planning Budget 40,000 $83,200 24, 400 22,100 20, 900 52,000 89,000 $ 291,600 Variances Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision Depreciation $2,500 U 2,400 U 3,100 U 2,000 U Total $10,000 U "I just can't understand all of these unfavorable 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 Insteed 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 foxed component of the budgeted maintenance cost is $16.500: the foxed component of the budgeted utilities cost is $13,900 Required: 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 pleces. Indicate the effect of each variance by selecting "F for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero veriance). Input all amounts

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 Freenont Corporation-Machining Departent Cost Control Report For the Month Ended June 30 Actual Results 42,000 S 85,700 26,800 25,200 22,900 52,000 89,000 $ 301,600 Planning Budget 40,000 $83,200 24, 400 22,100 20, 900 52,000 89,000 $ 291,600 Variances Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision Depreciation $2,500 U 2,400 U 3,100 U 2,000 U Total $10,000 U "I just can't understand all of these unfavorable 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 Insteed 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 foxed component of the budgeted maintenance cost is $16.500: the foxed component of the budgeted utilities cost is $13,900 Required: 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 pleces. Indicate the effect of each variance by selecting "F for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero veriance). Input all amounts

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 9-23 (Algo) Critiquing a Cost Report; Preparing a Performance Report (LO9-1, LO9-2, LO9-3, LO9-4) 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 Freenont Corporation-Machining Departnent Cost Control Report For the Month Ended June 30 Actual Results 42,000 $ 85,700 26, B00 25,200 22,900 52,000 89,000 $301,600 Planning Budget 40,000 $ 83,200 24, 400 22,100 20,900 52,000 19,000 $ 291,600 Variances Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision $2,500 U 2,400 U 3, 100 U 2,000 U Depreciation Total $ 10,000 U "I just can't understand all of these unfavorable 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 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 $16,500: the fixed component of the budgeted utilities cost is $13,900. Required: 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 veriance). Input all amounts as positive values.)
Transcribed Image Text:Problem 9-23 (Algo) Critiquing a Cost Report; Preparing a Performance Report (LO9-1, LO9-2, LO9-3, LO9-4) 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 Freenont Corporation-Machining Departnent Cost Control Report For the Month Ended June 30 Actual Results 42,000 $ 85,700 26, B00 25,200 22,900 52,000 89,000 $301,600 Planning Budget 40,000 $ 83,200 24, 400 22,100 20,900 52,000 19,000 $ 291,600 Variances Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision $2,500 U 2,400 U 3, 100 U 2,000 U Depreciation Total $ 10,000 U "I just can't understand all of these unfavorable 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 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 $16,500: the fixed component of the budgeted utilities cost is $13,900. Required: 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 veriance). Input all amounts as positive values.)
Freemont Corporation-Machining Department Flexible Budget Performance Report For the Month Ended June 30 Actual Results Revenue and Spending Variances Planning Budget Flexible Budget Machine-hours 42,000 40,000 83 200 24,400 22,100 20,900 52,000 Direct labor wages $ 85,700 Supplies 26,800 Maintenance 25,200 22,900 52,000 89,000 $ 301,600 Utilitbes Supervision Depreciation 89,000 $ 291,600 Total
Transcribed Image Text:Freemont Corporation-Machining Department Flexible Budget Performance Report For the Month Ended June 30 Actual Results Revenue and Spending Variances Planning Budget Flexible Budget Machine-hours 42,000 40,000 83 200 24,400 22,100 20,900 52,000 Direct labor wages $ 85,700 Supplies 26,800 Maintenance 25,200 22,900 52,000 89,000 $ 301,600 Utilitbes Supervision Depreciation 89,000 $ 291,600 Total
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