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: During March, the company worked 17,000 machine-hours and produced 11,000 units. The company had originally planned to work 19,000 machine-hours during Mareh. Required: 1. Caiculate the activity variances for March, Calculate the spend varionces for Morc 2. Calculate the spending variances for March Complete this question by entering your answers in the tabs below. Calculate the activity variances for March. (Indicate the effect of each variance by selecting " F " for favorable, "U* for Required: 1. Calculate the activity variances for March. 2. Caiculate the spending variances for March. Complete this question by entering your answers in the tabs below. Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, " B " for unfavorable, and "None" for no effect (i.e, zero variance). Input all amounts as positive values.) Calculate the spending variances for March. (Indicate the effect-of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.) Ray Company provided the following excerpts from its Production Department's flexible budget performance report. Required: Complete the Production Department's Flexible Budget Performance Report. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance). Input all amounts as positive values. Round "rate per hour" answers to 2 decimal places.) Frank Weston, supervisor of the Freemont Corporation's Machining Department, was visibly upset after being reprimanded for his department's poor performance over the prior month. The department's cost control report is given below: "I just can't understand all of these unfavorable variances," Weston complained to the supervisor of another department. "When the boss called me in, I thought he was going to give me a pat on the back because I know for a fact that my department worked more efficiently last month than it has ever worked before. Instead, he tore me apart. I thought for a minute that it might be over the supplies that were stolen out of our warehouse last month. But they only amounted to a couple of hundred dollars, and just look at this report. Everything is unfavorable." Direct labor wages and supplies are variable costs; supervision and depreciation are fixed costs; and maintenance and utilities are mixed costs. The fixed component of the budgeted maintenance cost is $18,900; the fixed component of the budgeted utilities cost is $14,500. Required: 2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the machining department. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Direct labor wages and supplies are variable costs; supervision and depreciotion are fixed costs; and maintenance and utlities are mixed costs. The fixed component of the budgeted maintenance cost is $18,900; the fixed component of the budgeted utilities cost is $14,500. Required: 2. Complete the performance report that will help Mc. Weston's superiors assess how well costs were controlled in the machining department. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting " F " for favorable, " U * for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
