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 63,000 50,000 Autos 21 20 Gasoline $ 9,350 $ 7,500 $ (1,850 ) Oil, minor repairs, parts 2,360 2,000 (360 ) Outside repairs 1,420 1,500 80 Insurance 2,120 2,000 (120 ) Salaries and benefits 7,540 7,540 0 Vehicle depreciation 5,250 5,000 (250 ) Total $ 28,040 $ 25,540 $ (2,500 ) The planning budget was based on the following assumptions: $0.15 per mile for gasoline. $0.04 per mile for oil, minor repairs, and parts. $75 per automobile per month for outside repairs. $100 per automobile per month for insurance.

The supervisor of the motor pool is unhappy with the report, claiming it paints an unfair picture of the motor pools 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.)

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Spending Variances
For the Month Ended March 31
Gasoline
Oil, minor repairs, parts
Outside repairs
Insurance
Salaries and benefits
Vehicle depreciation
Total