Case $9-25($Algo$)$ Critiquing a Report; Calculating Spending Variances $[$LO$9-3,$ L$09-5]$

Boyne University offers an extensive continuing education program in numerous cities. 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 compared to that month's planning budget:

The planning budget was based on the following assumptions:

a$.$ $$0\mathrm{.}17$ per mile for gasoline.

b$.$ $$0\mathrm{.}06$ per mile for oil, minor repairs, and parts.

c$.$ $$41$ per automobile per month for outside repairs.

d$.$ $$76$ per automobile per month for insurance.

e$.$ $$8,610$ per month for salaries and benefits.

f$.$ $$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:

Calculate the spending variances for March.

Note: 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. Case $9-25($Algo$)$ Critiquing a Report; Calculating Spending Variances $[$LO$9-3,$ LO$9-5]$

Boyne University offers an extensive continuing education program in numerous cities. 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 compared to that month's planning budget:

Boyne University Motor Pool

Cost Control Report

For the Month Ended March $31$

March Actual Planning Budget $($Over$)$ Under Budget

Miles $58,10050,100$

Autos $2221$

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

Oil, minor repairs, parts $3,3403,006(334)$

Outside repairs $1,040861(179)$

Insurance $1,7201,596(124)$

Salaries and benefits $8,6108,6100$

Vehicle depreciation $4,4224,221(201)$

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

The planning budget was based on the following assumptions:

$$0\mathrm{.}17$ per mile for gasoline.

$$0\mathrm{.}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.