Problem # $1$: Statewide College Fleet Management Efficiency AnalysisBackground: Statewide College offers a broad range of adult education courses across multiple locations. To support its operations effectively and economically, the college manages a fleet service for transporting its teaching staff and administrators. In March, recognizing the need for additional capacity, the college expanded its fleet from $20$ to $21$ vehicles. The fleet service provides fuel, maintenance supplies, and logistical support. Routine servicing is managed in$-$house, while more significant repairs are outsourced to a specialized automotive service provider.The data below represents the actual fleet operation costs for March compared to the planned budget. The planning budget figures were determined based on specific cost assumptions:March Actual PlanningBudget $($Over$)$ Under BudgetMiles. $.........63,00050,000$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)$Cost Assumptions for Fleet Operation:Gasoline: $$0\mathrm{.}15$ per mileOil and minor maintenance: $$0\mathrm{.}04$ per mileExternal repairs: $$75$ per vehicle per monthInsurance: $$100$ per vehicle per monthStaff salaries and benefits: $$7,540$ per monthVehicle depreciation: $$250$ per vehicle per monthThe fleet manager has expressed concerns that the current report does not accurately reflect the fleet service's operational efficiency and could misrepresent the service's performance.Required Analysis:$1.$ Spending Variances for March: Analyze and calculate the spending variances for the month of March, taking into consideration the fleet expansion and actual operational activities. Your analysis should quantify the differences between the actual expenses and what was budgeted, providing a clear picture of where and why these variances occurred.Evaluating the Report's Effectiveness: Identify and discuss the shortcomings in the existing cost control report. Consider how these deficiencies might lead to misconceptions about the fleet service's performance.Demonstrate how your variance calculations address these issues, offering a more nuanced and accurate assessment of the fleet's financial and operational efficiency.