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C Secure https://newconnect.mheducation.com/flow/connect.html Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion 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 Results Planning Budget Variances Machine-hours 42,908 40,8ee Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total 74,800 $1,800 U 1,700 U $ 76,600 23,300 23,108 20,800 45,000 75,000 s 263,800 21,600 20,900 2,200 U 19,580 1,300 U 45,000 75,00e $256,800 $7,009 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.) Mc Graw Hill 3 of 3Explanation / Answer
Freemont Corporation : Machining Department
Flexible Budget Performance Report
For the month ended June 30
* Variable component of maintenance cost (40,000 MH) = $ ( 20,900 - 13,700) = $ 7,200
Variable component of maintenance cost ( 42,000 MH) = $ 7,200 / 40,000 x 42,000 = $ 7,560.
Total maintenance cost at 42,000 MH = $ 7,560 + $ 13,700 = $ 21,260.
Actual Results Spending Variances Flexible Budget Volume Variances Planning Budget Machine Hours 42,000 42,000 40,000 $ $ $ $ $ Direct Labor Wages 76,600 1,940 F 78,540 3,740 U 74,800 Supplies 23,300 620 U 22,680 1,080 U 21,600 Maintenance 23,100 1,840 U 21,260 * 360 U 20,900 Utilities 20,800 985 U 19,815 315 U 19,500 Supervision 45,000 None 45,000 None 45,000 Depreciation 75,000 None 75,000 None 75,000 Totals 263,800 1,505 U 262,295 5,495 U 256,800Related Questions
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