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ces You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs. You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Cost Formula Utilities Maintenance Supplies $16,900 $0.18 per machine-hour $38,000+ $1.70 per machine-hour $0.70 per machine-hour Indirect labor $94,600+ $1.60 per machine-hour Depreciation $60,500 Actual Cost in Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March. March 22,120 $ $ 64,100 $ 13,100. $125,900 1 70,200 During March, the company worked 17,000 machine-hours and produced 11,000 units. The company had originally planned to work 19.000 machine-hours during March. Required 1 Required 2 Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorab unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.) FAB Corporation Activity Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total Required 1 Required 2 > Required 1 Required 2 Calculate the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.) FAB Corporation Spending Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total < Required 1 Required 2 MI ces You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs. You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Cost Formula Utilities Maintenance Supplies $16,900 $0.18 per machine-hour $38,000+ $1.70 per machine-hour $0.70 per machine-hour Indirect labor $94,600+ $1.60 per machine-hour Depreciation $60,500 Actual Cost in Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March. March 22,120 $ $ 64,100 $ 13,100. $125,900 1 70,200 During March, the company worked 17,000 machine-hours and produced 11,000 units. The company had originally planned to work 19.000 machine-hours during March. Required 1 Required 2 Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorab unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.) FAB Corporation Activity Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total Required 1 Required 2 > Required 1 Required 2 Calculate the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.) FAB Corporation Spending Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total < Required 1 Required 2 MI
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Related Book For
Financial & Managerial Accounting
ISBN: 978-1337902663
15th edition
Authors: Carl Warren, Jefferson P. Jones, William B. Tayler
Posted Date:
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