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 pool's monthly planning budget is based on operating 22 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.

Boyne University Motor Pool

Cost Control Report

For the Month Ended March 31

March

Actual

Planning

Budget

(Over)

Under

Budget

Miles 57,700 49,700

Autos 23 22

Gasoline $ 7,900 $ 6,958 $ (942)

Oil, minor repairs, parts 7,290 6,958 (332)

Outside repairs 1,010 836 (174)

Insurance 1,750 1,628 (122)

Salaries and benefits 8,610 8,610 0

Vehicle depreciation 4,577 4,378 (199)

Total $ 31,137 $ 29,368 $ (1,769)

1. $0.14 per mile for gasoline.
2. $0.14 per mile for oil, minor repairs, and parts.
3. $38 per automobile per month for outside repairs.
4. $74 per automobile per month for insurance.
5. $8,610 per month for salaries and benefits.
6. $199 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 pool's performance.

1. Calculate 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.)

Boyne University Motor Pool

Spending Variances

For the Month Ended March 31

Gasoline

Oil, minor repairs, parts

Outside repairs

Insurance

Salaries and benefits

Vehicle depreciation

Total