Problem 8-23A Flexible Budgets and Spending Variances [LO1 , LO2]

You have just been hired by SecuriDoor Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the companys 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 April:

	Cost Formula	Actual Cost in April
Utilities	$ 16,200 plus $.21 per machine-hour	$	21,990
Maintenance	$ 38,900 plus $1.30 per machine-hour	$	57,400
Supplies	$ .50 per machine-hour	$	9,300
Indirect labor	$ 94,800 plus $1.30 per machine-hour	$	120,400
Depreciation	$ 68,000	$	69,700

During April, the company worked 17,000 machine-hours and produced 11,000 units. The company had originally planned to work 19,000 machine-hours during April.

Required:

1.	Prepare a flexible budget for April. (Input all amounts as positive values.)

SecuriDoor Corporation Flexible Budget For the Month Ended April 30
Machine-hours
Utilities	$
Maintenance
Supplies
Indirect labor
Depreciation
Total	$

2.

Prepare a report showing the spending variances for April. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

SecuriDoor Corporation Spending Variances For the Month Ended April 30
	Flexible Budget	Actual Results	Spending variance
Utilities	$	$	$	(Click to select)FUNone
Maintenance				(Click to select)FUNone
Supplies				(Click to select)FUNone
Indirect labor				(Click to select)FUNone
Depreciation				(Click to select)FUNone
Total	$	$	$	(Click to select)FUNone