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e Solved: Flexible Budgets × https://newconnect.mheducation.com/flow/connect.html onnect C Secure Chapter 9 Homework Saved 3 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: 3.34 points Freemont Corporation-Machining Department Cost Control Report For the Month Ended June 30 Actual Results Planning Budget Variances eBook Machine-hours 42,000 40,800 References Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total 74,800 $1,800 U 21,600 1,700 U 20,900 2,200 19,500 1,300 U 45,000 7 $76,600 23,300 23,100 20,800 45,000 75,600 263,800 5,000 $256,800 $7,000 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 th an 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 $13,700, the fixed component of the budgeted utilities cost is $13,200 Required 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.) Mc Graw K Prev 3 of 3 i Next>Explanation / Answer
Flexible Budget Performance report For the month ended June 30 Actual Results Spending and revenue variance F/U Flexibe Budget Activity variance F/U Planning Budget Machine hours 42000 42000 40000 Direct labor wages @ 1.87 76600 1940 F 78540 -3740 U 74800 supplies @ 0.54 23300 -620 U 22680 -1080 U 21600 maintenance 23100 -1155 U 21945 -1045 U 20900 utilities 20800 -325 U 20475 -975 U 19500 Supervision 45000 0 45000 0 45000 depreciation 75000 0 75000 0 75000 Total 263800 -160 U 263640 -6840 U 256800
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