SPAN 101 Lecture 14: Spanish notes.4
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Frank Weston, supervisor of the Freemont Corporationâs Machining Department, was visibly upset after being reprimanded for his departmentâs poor performance over the prior month. The departmentâs cost control report is given below:
Freemont CorporationâMachining Department Cost Control Report For the Month Ended June 30 | |||||||
Actual Results | Planning Budget | Variances | |||||
Machine-hours | 34,000 | 31,000 | |||||
Direct labor wages | $ | 70,900 | $ | 65,100 | $ | 5,800 | U |
Supplies | 20,700 | 18,600 | 2,100 | U | |||
Maintenance | 139,100 | 136,000 | 3,100 | U | |||
Utilities | 16,100 | 15,500 | 600 | U | |||
Supervision | 34,000 | 34,000 | 0 | ||||
Depreciation | 84,000 | 84,000 | 0 | ||||
Total | $ | 364,800 | $ | 353,200 | $ | 11,600 | U |
âI just canât understand all these unfavorable variances,â Weston complained to the supervisor of another department. âWhen 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.â
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 $95,700; the fixed component of the budgeted utilities cost is $12,400.
Required:
2. Complete the performance report that will help Mr. Westonâs superiors assess how well costs were controlled in the machining department. (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.)
Sue Jaski, supervisor of the Karaki Corporationâs MachiningDepartment, was visibly upset after being reprimanded for herdepartmentâs poor performance over the prior month. Thedepartmentâs cost control report is given below: |
Karaki CorporationâMachining Department Cost Control Report For the Month Ended June 30 | |||||||
Planning Budget | Actual Results | Variances | |||||
Machine-hours | 40,000 | 42,000 | |||||
Direct laborwages | $ | 85,600 | $ | 87,000 | $ | 1,400 | U |
Supplies | 25,200 | 27,800 | 2,600 | U | |||
Maintenance | 21,400 | 21,400 | 0 | ||||
Utilities | 20,100 | 19,900 | 200 | F | |||
Supervision | 54,000 | 54,000 | 0 | ||||
Depreciation | 93,000 | 93,000 | 0 | ||||
Total | $ | 299,300 | $ | 303,100 | $ | 3,800 | U |
âI just canâtunderstand all the red ink,â Jaski complained to the supervisor ofanother department. âWhen the boss called me in, I thought he wasgoing to give me a pat on the back because I know for a fact thatmy department worked more efficiently last month than it has everworked before. Instead, he tore me apart. I thought for a minutethat it might be over the supplies that were stolen out of ourwarehouse last month. But they only amounted to a couple of hundreddollars, and just look at this report. Everything isunfavorable.â |
Direct labor wages andsupplies are variable costs; supervision and depreciation are fixedcosts; and maintenance and utilities are mixed costs. The fixedcomponent of the budgeted maintenance cost is $17,300; the fixedcomponent of the budgeted utilities cost is $14,100. |
Required:Complete the performance report that willhelp Ms. Jaskiâs superiors assess how well costs were controlled inthe Machining Department. (Indicate the effect of eachvariance by selecting "F" for favorable, "U" for unfavorable, and"None" for no effect (i.e., zero variance). Input all amounts aspositive values. Round "variable rates" to 4decimal places.) |
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