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Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (9) Revenue ($480.009) 300 $ 144,000 Expenses: Wages and salaries ($11,300 + $126.00q) Supplies ($4.009) Equipment rental ($2,000 + $25.009) Insurance ($4,100) Miscellaneous ($530 + $ 1.469) 49,100 1,200 9,500 4,100 968 Total expense 64,868 Net operating income $ 79,132 Required: During May, the company's activity was actually 290 diving-hours. Complete the following flexible budget for that level of activity. (Round your answers to nearest whole dollar.) Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income $ The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,600 Revenue $ 27,000 Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other 2,830 2,960 4,890 5,050 1,010 1,146 Total expense 17,886 Net operating income $ 9,114 Required: Compute the company's revenue and spending variances for August. (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.) Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities -ul-ulu- Other Total expense Net operating income Via Gelato is a popular neighborhood gelato shop. The company has provided the following data concerning its operations: Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Fixed Variable Element Element per Month per Liter $15.00 $ 4.95 $ 5,900 $ 1.70 $ 1,930 $ 0.50 $ 2,900 $ 1,650 $ 680 $ 0.65 Actual Total for June $84,540 $31,530 $ 15,900 $ 5,500 $ 2,900 $ 1,650 $ 4,150 While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be $5,900 plus $1.70 per liter of gelato sold and the actual wages for June were $15,900. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters. Required: Complete the report showing Via Gelato revenue and spending variances for June. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Required: Complete the report showing Via Gelato revenue and spending variances for June. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Via Gelato Revenue and Spending Variances For the Month Ended June 30 Revenue Expenses: Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income I 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 $17,000 plus $0.12 per machine-hour Maintenance $38,700 plus $1.90 per machine-hour Supplies $0.80 per machine-hour Indirect labor $94,500 plus $1.40 per machine-hour Depreciation $68,200 Actual Cost in March $ 20,720 $ 62.900 $ 12,600 $ 117,800 $ 69,900 During March, the company worked 14,000 machine-hours and produced 8,000 units. The company had originally planned to work 16,000 machine-hours during March. Prepare a flexible budget for March. (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.) FAB Corporation Flexible Budget For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total Prepare a report showing the spending variances for March. (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.) FAB Corporation Spending Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labori Depreciation Total
