Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening 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: Utilities Maintenance Supplies Indirect labor Depreciation Cont Formula $16.700 - 50.19 per machine-hour $38.600 51.30 per machine-hour $0.60 per machine-hour $94.500 + 01.40 per machine-hour $67.700 Actual Coat in March $ 21,730 $ 54,500 $ 10,000 $119,200 $ 69,400 During Morch, 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. Calculate the activity variances for March 2. Calculate the spending variances for March Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable "u" for unfavorable, and "None" for no effect (e., zero variance). Input all amounts as positive values.) FAB Corporation Activity Variances For the Month Ended March 31 Utilities Maintenance Supplies Instinct lah During March, the company worked 15,000 machine-hours and produced 9,000 units. The company had originally planned to w 17.000 machine-hours during March. Required: 1. Calculate the activity variances for March 2. Calculate the spending variances for March Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) FAB Corporation Activity Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total Required Required 2 >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Of Tax Regularity And Efficiency

Authors: Mohamed Aziz Boussaid

1st Edition

6206215865, 978-6206215868

More Books

Students also viewed these Accounting questions

Question

an element of formality in the workplace between different levels;

Answered: 1 week ago