ase $9-25($Static$)$ Critiquing a Report; Calculating Spending Variances $[$LO$9-3,$ LO$9-5]$

Boyne University offers an extensive continuing education program in numerous cities. For the convenience of its faculty and administrative staff and to save costs, the university operates a motor pool. The motor pool$$s monthly planning budget is based on operating $20$ vehicles; however, for the month of March, the university purchased one additional vehicle. The motor pool furnishes gasoline, oil, and other supplies for its automobiles. A mechanic does routine maintenance and minor repairs. Major repairs are performed at a nearby commercial garage.

The following cost control report shows actual operating costs for March compared to that month's planning budget:

Boyne University Motor Pool

Cost Control Report

For the Month Ended March $31$

March Actual Planning Budget $($Over$)$ Under Budget

Miles $63,00050,000$

Autos $2120$

Gasoline $ $9,350$ $ $7,500$ $ $(1,850)$

Oil, minor repairs, parts $2,3602,000(360)$

Outside repairs $1,4201,50080$

Insurance $2,1202,000(120)$

Salaries and benefits $7,5407,5400$

Vehicle depreciation $5,2505,000(250)$

Total $ $28,040$ $ $25,540$ $ $(2,500)$

The planning budget was based on the following assumptions:

$$0\mathrm{.}15$ per mile for gasoline.

$$0\mathrm{.}04$ per mile for oil, minor repairs, and parts.

$$75$ per automobile per month for outside repairs.

$$100$ per automobile per month for insurance.

$$7,540$ per month for salaries and benefits.

$$250$ per automobile per month for depreciation.

The supervisor of the motor pool is unhappy with the report, claiming it paints an unfair picture of the motor pool$$s performance.

Required:

$1.$ Calculate the spending variances for March.

Note: Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance$).$ Input all amounts as positive$$values$.$