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Frank Weston, supervisor of the Freemont Corporation's Machining Department, was visibly upset after being reprimanded for his department's poor...

Frank Weston, supervisor of the freemont corporation'sScreen Shot 2018-05-04 at 8.48.32 PM.pngScreen Shot 2018-05-04 at 8.48.39 PM.png

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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 1.11 Actual Planning points Results Budget Variances
Machine-hours 42, 000 40,000
Direct labor wages $ 77,900 $ 76,000 $1,900 U
Supplies 23,800 22,000 1,800 U
Maintenance 23,400 20,900 2,500 U
Utilities 21,100 19,700 1,400 0 References Supervision 46, 000 46,000 0 Depreciation 77, 000 77,000 0
Total $ 269,200 $261,600 $7,600 U “ljust 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, andjust 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 $14,100; the fixed component of the budgeted utilities cost is
$13,300. 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.)

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U $13,300. Required: 2. Complete the performance report that will help Mr. Weston’s superiors assess how well costs were controlled in the machining
1.11 department. (Round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by selecting "F" for
points favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) References 42,000 O N
0)
O
O 3 n

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