frank weston supervisor of the fremont corporation s machining departmentac 381662

Frank Weston, supervisor of the Fremont Corporations Machining DepartmentAc€¦ the departments cost control report given below reflects direct labor wages and supplies as variable costs; supervision and depreciation as fixed costs; and maintenance and utilities as mixed costs. The fixed component of the budgeted maintenance cost is $92,000; the fixed component of the budgeted utilities cost is $11,700. a) Evaluate the companys cost control report and explain why the variances were all unfavorable. b) Prepare a performance report that will help Mr. Westons superiors assess how well costs were controlled in the Machining Department. Freemont Corporation Machining Department Cost Control Report For the Month Ended June 30 Planning Budget Actual Results Variances Machine hours 35,000 38,000 Direct labor wages $80,500 $86,100 $5,600 U Supplies 21,000 23,100 2,100 U Maintenance 134,000 137,300 3,300 U Utilities 15,200 15,700 500 U Supervision 38,000 38,000 0 Depreciation 80,000 80,000 0 Total $368,700 $380,200