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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 $16,900; the fixed component of the budgeted utilities cost is $14,000. 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.) Freemont Corporation-Machining Department Flexible Budget Performance Report For the Month Ended June 30 Actual Revenue and Spending Flexible Planning Budget Activity Variances Results Variances Budget Machine-hours 42,000 42,000 40,000 Direct labor wages $ 87,000 F $ 84,400 Supplies 27,300 24,800 Maintenance 24,400 22,500 Utilities 22,100 21,100 Supervision 53,000 O None 53,000 O None 53,000 Depreciation 91,000 O None 91,000 O None 91,000 Total $ 304,800 $ 144,000 $ 296,800 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 $16,900; the fixed component of the budgeted utilities cost is $14,000. 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.) Freemont Corporation-Machining Department Flexible Budget Performance Report For the Month Ended June 30 Actual Revenue and Spending Flexible Planning Budget Activity Variances Results Variances Budget Machine-hours 42,000 42,000 40,000 Direct labor wages $ 87,000 F $ 84,400 Supplies 27,300 24,800 Maintenance 24,400 22,500 Utilities 22,100 21,100 Supervision 53,000 O None 53,000 O None 53,000 Depreciation 91,000 O None 91,000 O None 91,000 Total $ 304,800 $ 144,000 $ 296,800
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Related Book For
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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