SFrank Weston, supervisor of the Freemont Corporation's Machining Department, was visibly upset after being reprimanded for hisdepartment's poor performance over the prior month. The department's cost control report is given below:FREEMONT CORPORATION-MACHINING DEPARTMENTCost Control ReportFor the Month Ended June 30Machine-hoursDirect labour wagesSuppliesMaintenanceUtilitiesSupervisionDepreciationTotalActual40,040$ 86,10024,290145,80017,74041,40083,400$398,730Static Budget36,700$ 84,41022,020142,67017,07041,40083,400$390,970Static BudgetRequired:1. This part of the question is not part of your Connect assignment.Variance$ 1,690 U2,270 U3,130 U670 U100$ 7,760 U"I just can't understand all of these unfavourable variances," Weston complained to the supervisor of another department. "When theboss 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 moreefficiently last month than it has ever worked before. Instead, he tore me apart. I thought for a minute that it might be over the suppliesthat 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 aremixed costs. The fixed component of the budgeted maintenance cost is $98,630; the fixed component of the budgeted utilities cost is$13,400.< Prev2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the machiningdepartment. (Round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)Freemont Corporation-Machining Department4 of 4twwMacBook AirNext

Name: SFrank Weston, supervisor of the Freemont Corporation's Machining Dep
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Description: SFrank Weston, supervisor of the Freemont Corporation's Machining Department, was visibly upset after being reprimanded for hisdepartment's poor performance over the prior month. The department's cost control report is given below:FREEMONT CORPORATI

Standards are set in advance, from the standard the actual performance is measured. In case if the…

Business

Accounting

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.) Freemont Corporation-Machining Department

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.) Freemont Corporation-Machining Department

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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Gauging the Favorableness of Variances When variances occur, they are described as being either favorable or unfavorable. When actual activity consumes more time or money than initially planned, an unfavorable variance exists. However, when actual activity consumes less time or money than initially planned, a favorable variance exists. Note that the terms favorable and unfavorable are used, rather than saying that a variance is good or bad, because until the cause of a variance is discovered, it is not clear whether a variance is either good or bad. Note: Use the minus sign to indicate negative values (when the budgeted amount is greater than the actual). If a company calculates that the actual cost for the actual hours worked by employees was $4,600,000, and the amount budgeted for those hours actually worked was $4,800,000, the actual cost for hours worked less the budgeted cost for hours worked is $ less than ✔ the budgeted cost at actual hours worked. What type of variance is this?…
"Required 2" looks the save as "Required 1" (pictured).
How do I find the actual rate for variable manufacturing overhead. I’m trying to compute the variable overhead rate variance. I’ve attached a photo of my math in the way I was taught to do it.
Please do not give solution in image format ?
Hi Expert, i have attached an excel spreadsheet that i need help with. Where is says, "Formula.." please kindly indicate how you got the answer by submitting the answer and the formula used. i also don't understand what he meant by "indicate F or U only" mind telling me what he means? I appreciate your help thank you so much. God bless!
Perfect Pet Collar Company makes custom leather pet collars. The company expects each collar to require 2.35 feet of leather and predicts leather will cost $4.20 per foot. Suppose Perfect Ret made 85 collars during February. For these 85 collars, the company actually averaged 2.50 feet of leather per collar and paid $3.80 per foot. Required: 1. Calculate the standard direct materials cost per unit. 2. Without performing any calculations, determine whether the direct materials price variance will be favorable or unfavorable. 3. Without performing any calculations, determine whether the direct materials quantity variance will be favorable or unfavorable. 6. Calculate the direct materials price and quantity variances. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 6 Calculate the standard direct materials cost per unit. Note: Round your answer to 2 decimal places. Standard Direct Materials per Collar Reg 2 and 3>
1. Compute for Spending Variance 2. Compute for Variable Overhead Efficiency Variance 3. Compute for Controllable Variance
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