Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Ashford bus 630 week 4 dq 2 critiquing a cost report

196 views

Published on

  • Be the first to comment

  • Be the first to like this

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.

×