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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 Actual Results Planning Budget 40,000 Variances Machine-hours, 42,000 Direct labor wages Supplies Maintenance Utilities $ 85,700 26,800 25,200 22,900 52,000 89,000 $ 301,600 $ 83,200 24,400 22,100 20,900 52,000 89,000 $ 2,500 U 2,400 U 3,100 U 2,000 U Supervision Depreciation $291,600 $10,000 U Total "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

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 Actual Results Planning Budget 40,000 Variances Machine-hours, 42,000 Direct labor wages Supplies Maintenance Utilities $ 85,700 26,800 25,200 22,900 52,000 89,000 $ 301,600 $ 83,200 24,400 22,100 20,900 52,000 89,000 $ 2,500 U 2,400 U 3,100 U 2,000 U Supervision Depreciation $291,600 $10,000 U Total "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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
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 Control Report For the Month Ended June 30 Actual Results Planning Budget 40,000 Variances Machine-hours 42,000 Direct labor wages Supplies Maintenance Utilities $85,700 26,800 25,200 22,900 52,000 89,000 $ 301,600 $ 83,200 24,400 22,100 20,900 52,000 89,000 $2,500 U 2,400 U 3,100 U 2,000 U Supervision Depreciation $291,600 $10,000 U Total "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
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 Actual Results Planning Budget 40,000 Variances Machine-hours 42,000 Direct labor wages Supplies Maintenance Utilities $85,700 26,800 25,200 22,900 52,000 89,000 $ 301,600 $ 83,200 24,400 22,100 20,900 52,000 89,000 $2,500 U 2,400 U 3,100 U 2,000 U Supervision Depreciation $291,600 $10,000 U Total "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
Required: 2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in machinin- department. (Round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by ting "F" favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive value Freemont Corporation-Machining Department Flexible Budget Performance Report For the Month Ended June 30 Revenue and Spending Variances Actual Flexible Activity Variances Planning Budget Results Budget Machine-hours 42,000 42,000 40,000 Direct labor wages $ 85,700 F 2$ 83,200 Supplies 26,800 1,180 U 25,620 24,400 Maintenance 25,200 22,380 22,100 Utilities 22,900 1,650 U 21,250 20,900 Supervision 52,000 O None 52,000 None 52,000 Depreciation 89,000 O None O None 89,000 Total $ 301,600 $ 291,600
Transcribed Image Text:Required: 2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in machinin- department. (Round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by ting "F" favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive value Freemont Corporation-Machining Department Flexible Budget Performance Report For the Month Ended June 30 Revenue and Spending Variances Actual Flexible Activity Variances Planning Budget Results Budget Machine-hours 42,000 42,000 40,000 Direct labor wages $ 85,700 F 2$ 83,200 Supplies 26,800 1,180 U 25,620 24,400 Maintenance 25,200 22,380 22,100 Utilities 22,900 1,650 U 21,250 20,900 Supervision 52,000 O None 52,000 None 52,000 Depreciation 89,000 O None O None 89,000 Total $ 301,600 $ 291,600
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