Frank Weston, supervisor of the Freemont Corporation's Machining Department, was upset after being reprimanded for his
department's poor performance over the prior month. The department's cost control report is given below:
"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 my department worked more efficiently last
month than ever before. Instead, he tore me apart. I thought for a minute 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 $; the fixed component of the budgeted utilities cost is
$
Required:
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 ie zero variance Input all amounts as positive values.
