Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Both requirements 1 and 2 please! Problem 9-18 (Static) Activity and Spending Variances (L09-1, LO9-2, LO9-3] You have just been hired by FAB Corporation, the
Both requirements 1 and 2 please!
Problem 9-18 (Static) Activity and Spending Variances (L09-1, LO9-2, LO9-3] 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: Actual cont Cost Formula in March Utilities $20,600 + $0.10 per machine-hour $ 24,200 Maintenance $40,000+ $1.60 per machine-hour $ 78,100 Supplies $0.30 per machine-hour $ 8.400 Indirect labor $130,000 + $0.70 per machine-hour $ 149,600 Depreciation $70,000 $ 71,500 During March, the company worked 26,000 machine-hours and produced 15,000 units. The company had originally planned to work 30,000 machine-hours during March Required: 1. Calculate the activity variances for March 2. Calculate the spending varlances for March Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable. "U" for untavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.) 1. Calculate the activity variances for Marcn. 2. Calculate the spending variances for March Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) FAB Corporation Activity Variances For the Month Ended March 31 Utilities 24, 2000 Maintenance 78,100 None Supplies 8,400 F Indirect labor 149,6000 Depreciation 71.500U Total $ 331,800 Required Required 2 > 1. Calculate the activity variances for Marcn. 2. Calculate the spending variances for March Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the spending variances for March. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) FAB Corporation Spending Variancon For the Month Ended March 31 Utilities $ Maintenance Supplies Indirect labor Depreciation Total Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started