1. "I just can't understand all of these unfavorable variances," Weston complained to the supervisor
of another department. "When 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. Direct labor wages and
supplies are variable costs; supervision and depreciation are fixed costs; and maintenance and
utilities ate mixed costs. The fixed component of the budgeted maintenance cost is $92,000; the
fixed component of the budgeted utilities cost is $11,700.
2 Complete the performance report that will help Mr. Weston's superiors assess how well costs
were controlled in the mach department. (Do not round your intermediate calculations. Indicate
the effect of each variance by selecting "F" for favore for unfavorable, and "None" for no effect
(i.e., zero variance). Input all amounts as positive values.)