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 21 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 58,100 50,100

Autos 22 21

Gasoline $ 9,485 $ 8,517 $ (968 )

Oil, minor repairs, parts 3,340 3,006 (334 )

Outside repairs 1,040 861 (179 )

Insurance 1,720 1,596 (124 )

Salaries and benefits 8,610 8,610 0

Vehicle depreciation 4,422 4,221 (201 )

Total $ 28,617 $ 26,811 $ (1,806 )

The planning budget was based on the following assumptions:

$0.17 per mile for gasoline.

$0.06 per mile for oil, minor repairs, and parts.

$41 per automobile per month for outside repairs.

$76 per automobile per month for insurance.

$8,610 per month for salaries and benefits.

$201 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.

Required:

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.)