Farrar 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 operated with 23 vehicles until February, when an additional automobile was acquired at the request of the university administration. 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. Each year, the supervisor of the motor pool prepares an annual budget, which is reviewed by the university and approved after suitable modifications. The following cost control report shows actual operating costs for March of the current year compared to one-twelfth of the annual budget.

Farrar 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 operated with 23 vehicles until February, when an additional automobile was acquired at the request of the university administration. 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. Each year, the supervisor of the motor pool prepares an annual budget, which is reviewed by the university and approved after suitable modifications The following cost control report shows actual operating costs for March of the current year compared to one-twelfth of the annual budget. Farrar University Motor Pool For the Month Ended March 31 Annual Cost Control Report (Over) Under Monthly Budget (1/12 of Annual Budget) March Actual Budget Budget Miles Autos Gasoline Oil, minor repairs, parts Outside repairs Insurance Salaries and benefits Vehicle depreciation 603,600 23 $ 114,684 48,288 11,868 21,528 103,320 56,028 50,300 23 $ 9,557 4,024 989 1,794 8,610 4,669 58,300 24 $10,528 (971) (336) (171) (121) 4,360 1,160 1,915 8,610 4,872 0 (203) $ 31,445 $(1,802) Total $355,716 $ 29,643 The annual budget was based on the following assumptions a. $0.19 per mile for gasoline b. $0.08 per mile for oil, minor repairs, and parts c. $516 per automobile per year for outside repairs d. $936 per automobile per year for insurance e. $8,610 per month for salaries and benefits f. $2,436 per automobile per year 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. Complete the performance report for March based on a flexible budget that shows spending variances. (Round "per mile" answers to 2 decimal places. 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.) Farrar University Motor Pool Spending Variances For the Month Ended March 31 lexible Actua Annual Budget Assumptions Actual ResultsSpending Variances Budget Actual Re Miles Autos Gasoline Oil, minor repairs, parts Outside repairs Insurance Salaries and benefits Vehicle depreciation Total per mile per mile per month per month per month per month