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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.)

Freemont Corporation—Machining Department
Flexible Budget Performance Report
For the Month Ended June 30
Actual Results Flexible Budget Planning Budget
Machine-hours 42,000 40,000
Direct labor wages $76,600 $74,800
Supplies 23,300 21,600
Maintenance 23,100 20,900
Utilities 20,800 19,500
Supervision 45,000 45,000
Depreciation 75,000 75,000
Total $263,800

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