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*****please follow the chart format exact all the highlited areas must be filled. thanks Farrar University offers an extensive continuing education program in many cities
*****please follow the chart format exact all the highlited areas must be filled. thanks
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 22 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) 48,600 March ActualBudget 56,600 Budget 583,200 Autos Gasoline Oil, minor repairs, parts Outside repairs nsurance Salaries and benefits Vehicle depreciation 23 $ 9,720 10,670 $ (950) $116,640 52.488 7, 128 16,632 103,320 49,632 4,374 594 1.386 8,610 4,136 770 1.510 8,610 4,324 $ 345,840 $ 28,820 S 30,594 $(1,774) The annual budget was based on the following assumptions a. $0.20 per mile for gasoline b. $0.09 per mile for oil, minor repairs, and parts c. $324 per automobile per year for outside repairs d. $756 per automobile per year for insurance e. $8,610 per month for salaries and benefits f. $2,256 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 performanceStep by Step Solution
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