Prepare a performance report that will help Mr. Weston\'s superiors assess how w
ID: 2375477 • Letter: P
Question
Prepare a performance report that will help Mr. Weston's superiors assess how well costs were controlled in the Machining Department.
Cost Control ReportFor the Month Ended June 30 Planning
Budget Actual
Results Variances Machine-hours 33,300 36,900 Direct labor wages $76,590 $86,800 $10,210 U Supplies 19,980 23,600 3,620 U Maintenance 106,300 138,000 31,700 U Utilities 14,830 16,300 1,470 U Supervision 38,000 38,000 0 Depreciation 80,000 80,000 0 Total $335,700 $382,700 $47,000 U
Explanation / Answer
10
Freemont Corporation-Machining Department Cost Control Report For the Month Ended June 30 Planning Actual Revenue and Budget Results Spending variances Machine-hours 33,200 36,900 Variable costs: Direct labor wages 43,160 87,000 43,840U Supplies 19,920 25,100 5,180U Maintenance(117,200-84,000) 33,200 53,500 20,300U (137,500-84,000) Utilities(14,020-10,700) 3,320 6,900 3,580U (17,600-10,700) Total variable costs 99,600 172,500 72,900U Fixed costs: Supervision 38,000 38,000 0 Depreciation 80,000 80,000 0 Maintenance (Fixed) 84,000 84,000 0 Utilities(Fixed) 10,700 10,700 0 Total fixed costs 212,700 212,700 0 Total costs 312,300 385,200 72,900U Cost per machine hour= 312,300/33,200 = 9 385,200/36,900=10