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Question 3 You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door operang device. The president has asked that
Question 3 You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door operang 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 Bot March Cost Formula 336,600 + $0.16 per machine-hour $38.600 $1.00 per machine hour 50.40 per machine-hour $99,900 + 51.30 per machine-hour 563.200 Utilities Maintenance Supplies Indirect labor Depreciation Coutin $ 21,120 $ 64,700 $ 6.600 $117.00 $ 69,00 Sh. RE During March, the company worked 15,000 machine-hours and produced 9,000 units. The company had originally planned to work 17,000 machine hours during March Required: 1 1. Calculate the activity variances for March 2. Calculate the spending variances for March Opaci Complete this question by entering your answers in the tabs below. TI Required 1 Required 2 ce Calculate the activity variances for March (Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and one for no effect , tero variance). Input all amounts as positive values.) FAB Corporation Activity Vans For the Ended March 31 U Maintenance Supplies Indirect labor Depreciation Total 14 words c Question 3 You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door operang 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 Bot March Cost Formula 336,600 + $0.16 per machine-hour $38.600 $1.00 per machine hour 50.40 per machine-hour $99,900 + 51.30 per machine-hour 563.200 Utilities Maintenance Supplies Indirect labor Depreciation Coutin $ 21,120 $ 64,700 $ 6.600 $117.00 $ 69,00 Sh. RE During March, the company worked 15,000 machine-hours and produced 9,000 units. The company had originally planned to work 17,000 machine hours during March Required: 1 1. Calculate the activity variances for March 2. Calculate the spending variances for March Opaci Complete this question by entering your answers in the tabs below. TI Required 1 Required 2 ce Calculate the activity variances for March (Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and one for no effect , tero variance). Input all amounts as positive values.) FAB Corporation Activity Vans For the Ended March 31 U Maintenance Supplies Indirect labor Depreciation Total 14 words c
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