Question

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 S E Actual Results Planning Budget Variances Machine-hours 42,000 40,000 Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total 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 $ 291,600 $ 2,500 U 2,400 U 3,100 u 2,000 U $10,000 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 $16,500; the fixed component of the budgeted utilities cost is

Answer 1

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Plannin oraz 0000 freemont Corporation - Machining Department flexible budget Penrosmarke Repo for the Month Ended June 30. Actual Revenue & - Machine haare Berne flexible Activity a the hours Result spending Varand Budget voortance Machine howy 42000 42000 Direct labour $85,000 $1,660f $87360 $4,160 l u Supplies | 26,800) 11800 25620.1220 Maintenance 25,200 22380 Vitilisies 22,900 21250 3vbеrvіtіом 52000 o 52000 o Depreciation (89.000 o None 89,000 ol $33200 woges 24,400 cccc 22,100 20,900 52,000 Jyow Now 89,000 Total $301,600 3990 u $291610 6010 u $291,600