Question
In: Accounting
Frank Weston, supervisor of the Freemont Corporation’s Machining Department, was visibly upset after being reprimanded for...
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 |
|||||||||
| Actual Results | Planning Budget | Variances | |||||||
| Machine-hours | 42,000 | 40,000 | |||||||
| Direct labor wages | $ | 76,600 | $ | 74,800 | $ | 1,800 | U | ||
| Supplies | 23,300 | 21,600 | 1,700 | U | |||||
| Maintenance | 23,100 | 20,900 | 2,200 | U | |||||
| Utilities | 20,800 | 19,500 | 1,300 | U | |||||
| Supervision | 45,000 | 45,000 | 0 | ||||||
| Depreciation | 75,000 | 75,000 | 0 | ||||||
| Total | $ | 263,800 | $ | 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 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 $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.)
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Solutions
ekkarill92 answered 2 years agoRelated Solutions
Frank Weston, supervisor of the Freemont Corporation’s Machining Department, was visibly upset after being reprimanded for...
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 Actual Results Planning Budget Variances
Machine-hours 42,000 40,000 Direct labor wages $ 72,700 $ 71,200 $
1,500 U Supplies 21,800 20,400 1,400 U Maintenance 22,200 20,100
2,100 U Utilities 19,900 18,900 1,000 U Supervision 42,000 42,000...
Frank Weston, supervisor of the Freemont Corporation’s Machining Department, was visibly upset after being reprimanded for...
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
Actual Results
Planning Budget
Variances
Machine-hours
42,000
40,000
Direct labor wages
$
96,100
$
92,800
$
3,300
U
Supplies
30,800
27,600
3,200
U
Maintenance
26,500
23,700
2,800
U
Utilities
24,200
22,500
1,700
U
Supervision
60,000
60,000...
Frank Weston, supervisor of the Freemont Corporation’s Machining Department, was visibly upset after being reprimanded for...
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 Actual Results Planning Budget Variances
Machine-hours 42,000 40,000 Direct labor wages $ 90,900 $ 88,000 $
2,900 U Supplies 28,800 26,000 2,800 U Maintenance 25,300 22,900
2,400 U Utilities 23,000 21,700 1,300 U Supervision 56,000 56,000...
Frank Weston, supervisor of the Freemont Corporation’s Machining Department, was visibly upset after being reprimanded for...
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
Actual Results
Planning Budget
Variances
Machine-hours
42,000
40,000
Direct labor wages
$
79,200
$
77,200
$
2,000
U
Supplies
24,300
22,400
1,900
U
Maintenance
23,700
21,300
2,400
U
Utilities
21,400
19,900
1,500
U
Supervision
47,000
47,000...
Frank Weston, supervisor of the Freemont Corporation’s Machining Department, was visibly upset after being reprimanded for...
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
Actual Results
Planning Budget
Variances
Machine-hours
42,000
40,000
Direct labor wages
$
76,600
$
74,800
$
1,800
U
Supplies
23,300
21,600
1,700
U
Maintenance
23,100
20,900
2,200
U
Utilities
20,800
19,500
1,300
U
Supervision
45,000
45,000...
The production supervisor of the Machining Department for Niland Company agreed to the following monthly static...
The production supervisor of the Machining Department for Niland
Company agreed to the following monthly static budget for the
upcoming year:
Niland Company
Machining Department
Monthly Production Budget
Wages
$912,000
Utilities
56,000
Depreciation
92,000
Total
$1,060,000
The actual amount spent and the actual units produced in the
first three months in the Machining Department were as follows:
Amount Spent
Units Produced
January
$1,000,000
93,000
February
948,000
84,000
March
908,000
76,000
The Machining Department supervisor has been very pleased with
this...
The production supervisor of the Machining Department for Niland Company agreed to the following monthly static...
The production supervisor of the Machining Department for Niland
Company agreed to the following monthly static budget for the
upcoming year:
Niland Company
Machining Department
Monthly Production Budget
Wages
$515,000
Utilities
38,000
Depreciation
63,000
Total
$616,000
The actual amount spent and the actual units produced in the
first three months in the Machining Department were as follows:
Amount Spent
Units Produced
January
$582,000
126,000
February
553,000
114,000
March
530,000
103,000
The Machining Department supervisor has been very pleased with
this...
The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static...
The production supervisor of the Machining Department for
Hagerstown Company agreed to the following monthly static budget
for the upcoming year:
Hagerstown Company
Machining Department
Monthly Production Budget
Wages
$863,000
Utilities
65,000
Depreciation
108,000
Total
$1,036,000
The actual amount spent and the actual units produced in the
first three months in the Machining Department were as follows:
Amount Spent
Units Produced
May
$979,000
99,000
June
935,000
90,000
July
893,000
81,000
The Machining Department supervisor has been very pleased with
this...
The production supervisor of the Machining Department for Niland Company agreed to the following monthly static...
The production supervisor of the Machining Department for Niland
Company agreed to the following monthly static budget for the
upcoming year:
Niland Company
Machining Department
Monthly Production Budget
Wages
$310,000
Utilities
17,000
Depreciation
28,000
Total
$355,000
The actual amount spent and the actual units produced in the
first three months in the Machining Department were as follows:
Amount Spent
Units Produced
January
$334,000
71,000
February
316,000
64,000
March
303,000
58,000
The Machining Department supervisor has been very pleased with
this...
The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static...
The production supervisor of the Machining Department for
Hagerstown Company agreed to the following monthly static budget
for the upcoming year:
Hagerstown Company
Machining Department
Monthly Production Budget
Wages
$514,000
Utilities
36,000
Depreciation
61,000
Total
$611,000
The actual amount spent and the actual units produced in the
first three months in the Machining Department were as follows:
Amount Spent
Units Produced
May
$577,000
111,000
June
552,000
101,000
July
527,000
91,000
The Machining Department supervisor has been very pleased with
this...
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