Managerial accounting

You have just been hired by FAB the manufacturer of a revolutionary new garage door opening device. The president has asked that you review 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 budget, you suggest preparing such a budget would be an first step in planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost Cost Formula in March Utilities $16,200 plus $0.17 per machine-hour 21,570 Maintenance $38,900 plus $2.00 per machine-hour 74,700 Supplies $0.40 per machine-hour 8,200 Indirect labor $94.300 plus S1.80 per machine-hour Depreciation 69,800 During March, the company worked 19,000 and produced 13,000 units. The company had originally planned to work 21,000 machine-hours during March