The University of Pottersville offers an extensive continuing education program in many cities throughout the country. For the convenience of its faculty and administrative staff and to save costs, the university operates a motor pool. The motor pool operated with 25 vehicles until February of this year, when an additional automobile was acquired. The motor pool furnishes gasoline, oil, and other supplies for the cars and hires one mechanic who does routine maintenance and minor repairs. Major repairs are done at a nearby commercial garage. A supervisor manages the operations. Each year the supervisor prepares an operating budget, informing university management of the funds needed to operate the pool. Depreciation on the automobiles is recorded in the budget in order to determine the cost per kilometre. The schedule below presents the annual budget approved by the university. The actual costs for March are compared with one-twelfth of the annual budget.