Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Check my work You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked

image text in transcribed
image text in transcribed
Check my work You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs" You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,900 - 50.19 per machine-hour $38,900 + $1.90 per machine-hour $0.40 per machine-hour $94,700 + $1.10 per machine hour $67,600 Actual Cost in March $ 22,120 $ 66,9ee $7,000 $115,400 $ 69,300 nt ences During March, the company worked 16,000 machine hours and produced 10,000 units. The company had originally planned to work 18,000 machine-hours during March Required: 1. Calculate the activity variances for March 2. Calculate the spending variances for March Complete this question by entering your answers in the tabs below. Required Required 2 Calculate the activity variances for March (Indicate the effect of each variance by selecting "F* for favorable. "U" for unfavorable, and "None" for no effect (ie, zero variance). Input all amounts as positive values.) FAD Corporation Activity Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total Reque Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 (.e. zero variance), Input all amounts as positive values.) FAB Corporation Spending Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

22nd Edition

324401841, 978-0-324-6250, 0-324-62509-X, 978-0324401844

Students also viewed these Accounting questions