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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 Control Report For the Month Ended June 30 Planning Budget Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision. Depreciation Total Actual Results 42,000 $ 80,500 40,000 $ 78,400 22,800 Variances $ 2,100 U 2,000 U 2,700 U 1,600 U 24,800 24,000 21,700 48,000 81,000 $ 280,000 $ 271,600 $ 8,400 U 21,300 20,100 48,000 81,000 "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 $14,900; the fixed component of the budgeted utilities cost is $13,500. Required: 2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the machining department. (Do not round your intermediate calculations. 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.)

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 Control Report For the Month Ended June 30 Planning Budget Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision. Depreciation Total Actual Results 42,000 $ 80,500 40,000 $ 78,400 22,800 Variances $ 2,100 U 2,000 U 2,700 U 1,600 U 24,800 24,000 21,700 48,000 81,000 $ 280,000 $ 271,600 $ 8,400 U 21,300 20,100 48,000 81,000 "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 $14,900; the fixed component of the budgeted utilities cost is $13,500. Required: 2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the machining department. (Do not round your intermediate calculations. 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.)

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter1: Introduction To Cost Accounting
Section: Chapter Questions
Problem 12P: Bangor Products Co. obtained the following information from its records for April: Required: 1....
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Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total Freemont Corporation-Machining Department Flexible Budget Performance Report For the Month Ended June 30 Actual Results 42,000 80,500 24,800 24,000 21,700 48,000 81,000 $ 280,000 $ Revenue and Spending Variances F U U U 0 None 0 None U Flexible Budget $ 0 Activity Variances U U U U 0 None 0 None Planning Budget 40,000 $ 78,400 22,800 21,300 20,100 48,000 81,000 $ 271,600
Transcribed Image Text:Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total Freemont Corporation-Machining Department Flexible Budget Performance Report For the Month Ended June 30 Actual Results 42,000 80,500 24,800 24,000 21,700 48,000 81,000 $ 280,000 $ Revenue and Spending Variances F U U U 0 None 0 None U Flexible Budget $ 0 Activity Variances U U U U 0 None 0 None Planning Budget 40,000 $ 78,400 22,800 21,300 20,100 48,000 81,000 $ 271,600
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 Control Report For the Month Ended June 30- Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total Actual Results 42,000 $ 80,500 Planning Budget 40,000 $ 78,400 22,800 24,800 24,000 21,300 21,700 20,100 48,000 48,000 81,000 81,000 $ 280,000 $ 271,600 Variances $ 2,100 U 2,000 U 2,700 U 1,600 U 0 0 $ 8,400 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 $14,900; the fixed component of the budgeted utilities cost is $13,500. Required: 2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the machining department. (Do not round your intermediate calculations. 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.)
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 Control Report For the Month Ended June 30- Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total Actual Results 42,000 $ 80,500 Planning Budget 40,000 $ 78,400 22,800 24,800 24,000 21,300 21,700 20,100 48,000 48,000 81,000 81,000 $ 280,000 $ 271,600 Variances $ 2,100 U 2,000 U 2,700 U 1,600 U 0 0 $ 8,400 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 $14,900; the fixed component of the budgeted utilities cost is $13,500. Required: 2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the machining department. (Do not round your intermediate calculations. 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.)
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