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Ashford bus 630 week 4 dq 2 critiquing a cost report


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Ashford bus 630 week 4 dq 2 critiquing a cost report

  1. 1. ASHFORD BUS 630 Week 4 DQ 2 Critiquing a cost reportPLEASE DOWNLOAD HERECritiquing a Cost Report. Complete the following exercise: Frank Weston,supervisor of the Freemont Corporations Machining Department, was visiblyupset after being reprimanded for his departments poor performance over theprior month. The departments cost control report is given below:Freemont Corporation-Machining DepartmentCost Control ReportFor the Month Ended June 30Planning BudgetActual ResultsVariancesMachine-hours35,00038,000Direct labor wages$80,500$86,100$5,600USupplies21,00023,100
  2. 2. 2,100UMaintenance134,000137,3003,300UUtilities15,20015,700500USupervision38,00038,0000Depreciation80,00080,0000Total$368,700$380,200"I just cant understand all the red ink," Weston complained to the supervisor ofanother department. "When the boss called me in, I thought he was going to giveme a pat on the back because I know for a fact that my department worked more
  3. 3. efficiently last month than it has ever worked before, instead, he tore me apart. Ithought for a minute that it might be over the supplies that were stolen out of ourwarehouse last month. But they only amounted to a couple of hundred dollars,and just look at this report. Everything is unfavorable." Direct labor wages andsupplies are variable costs; supervision and depreciation are fixed costs; andmaintenance and utilities are mixed costs. The fixed component of the budgetedmaintenance 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 wereall unfavorable.b. Prepare a performance report that will help Mr. Westons superiors assess howwell costs were controlled in the Machining Department.Respond to at least two of your fellow students’ postings.