Problem 9-23 (Static) 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: Freemont Corporation Machining Department Cost Control Report For the Month Ended June 30 Actual Results 38,000 Planning Budget Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total Variances 35,000 $ 86,100 23,100 $ 80,500 $5,600 U 21,000 137,300 15,788 38,000 134,000 15,200 38,000 2,100 U 3,300 U 508 U в 88,000 $ 388,200 80,000 $ 368,700 B $ 11,500 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 $92,000; the fixed component of the budgeted utilities cost is $11,700. Required: 2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the machining department. Note: 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 (1.e., zero varlance). Input all amounts as positive values. Freemont Corporation-Machining Department Flexible Budget Performance Report For the Month Ended June 30 Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total Actual Results 38,000 $ 86,100 23,100 137,300 15,700 38,000 80,000 $ 380,200 Flexible Budget Planning Budget 35,000 $ 80,500 21,000 134,000 15,200 38,000 80,000 $ 368,700