Boyne University offers an extensive continuing education program in many cities throughout the state. For the convenience of its faculty and administrative staff and to save costs, the university operates a motor pool. The motor pools 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 of the current year compared to the planning budget for March.

Boyne University Motor Pool Cost Control Report For the Month Ended March 31
	March Actual			Planning Budget			(Over) Under Budget
Miles		57,900			49,900
Autos		21			20
Gasoline	$	14,400		$	13,473		$	(927	)
Oil, minor repairs, parts		8,320			7,984			(336	)
Outside repairs		1,205			1,020			185
Insurance		1,840			1,720			(120	)
Salaries and benefits		8,610			8,610			0
Vehicle depreciation		4,431			4,220			(211	)
Total	$	38,806		$	37,027		$	(1,779	)

The planning budget was based on the following assumptions:

$0.27 per mile for gasoline.

$0.16 per mile for oil, minor repairs, and parts.

$51 per automobile per month for outside repairs.

$86 per automobile per month for insurance.

$8,610 per month for salaries and benefits.

$211 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 pools performance.

Required:

1. Complete the performance report for March based on a flexible budget that shows spending variances. (Round "per mile" answers to 2 decimal places. 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.)

Please help with Planning Budget Assumptions, thank you.

Boyne University Motor Pool
Spending Variances
For the Month Ended March 31
	Planning Budget Assumptions		Actual Results	Flexible Budget	Spending Variances
Miles			57,900	57,900
Autos			21	21
Gasoline		per mile	$14,400		$1,233	F
Oil, minor repairs, parts		per mile	8,320		944	F
Outside repairs		per automobile	1,205		134	U
Insurance		per automobile	1,840		34	U
Salaries and benefits		per month	8,610		0	None
Vehicle depreciation		per automobile	4,431		0	None
Total			$38,806	$0	$2,009	F