ANSWER: Flexible budget for gasoline costs: 7,700

Flexible budget for oil costs: 1,400

Flexible budget for depreciation: 1,976

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08d output was 6,800 units. 8-40 University Flexible Budgeting Inverness University offers an extensive continuing education program in many cities throughout Scotland. For the convenience of its faculty and administrative staff and also to save costs, the university operates a motor pool. The motor pool operated with 25 vehicles until February of this year, when an additional automobile was acquired. The motor pool furnishes gasoline, oil, and other supplies for the cars and hires one mechanic who does routine maintenance and minor repairs. Major repairs are done at a nearby garage. A supervisor manages the operations. Each year the supervisor prepares an operating budget, informing university management of the funds needed to operate the pool. Depreciation on the automobiles is recorded in budget in order to determine the cost per kilometer. The schedule below presents the annual budget approved by the university. The actual costs for March are compared with one-twelfth of the annual budget: University Motor Pool Budget Report for March Annual One-Month Budget Budget 6,875 1,250 225 400 1,800 1,900 149,400 12,450 March Unfav (Fav) 8,200 1,325 50 50 (175) Actual Gasoline Oil, minor repairs, parts, and supplies Outside repairs Insurance Salaries and benefits Depreciation Total 82,500 15,000 2,700 4,800 21,600 22.800 1,300 416 1,800 76 13,742 1,292 Total kilometers Cost per kilometer Number of automobiles 1,500,000 125,000 .0996 .0996 25 140,000 0.982 26 25 e monthly report comparing budget and actual costs for March. The supervisor is unhappy with th She claims it presents her performance unfairly 1. Create a flexible budget report for the Motor Pool department for March