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:
Cost FormulaActual Cost in MarchUtilities$16,000 + $0.15 per machine-hour$21,100Maintenance$38,200 + $1.50 per machine-hour$65,000Supplies$0.60 per machine-hour$13,000Indirect labor$94,300 + $1.30 per machine-hour$123,800Depreciation$68,500$70,200
During March, the company worked 20,000 machine-hours and produced 14,000 units. The company had originally planned to work 22,000 machine-hours during March.
Required:
1. Prepare a flexible budget for March.
2. Prepare a report showing the spending variances for March.
Question 5 - BONUS HOMEWOR X Homework Help - Q&A from Onl x + - C Dezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBEPuyDOoj8bFRQ313hkg3vsabe6etcdTXaNzRGoonXGmSqx0Pn0oUMMDtta6VZIjnNywAlQ_VBIfCO3b7bkdlvmOGXUYevLy5NU BONUS HOMEWORK i Saved Help Save & Exit Submit 5 ou 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: 10 points Actual Cost in 8 02:56:57 Cost Formula March Utilities $16,000 + $0.15 per machine-hour $ 21, 100 Maintenance $ 65,000 Skipped $38, 200 + $1.50 per machine-hour Supplies $0.60 per machine-hour $ 13,080 Indirect la $94, 300 + $1.30 per machine-hour Depreciation $68,500 $ 70,200 Book During March, the company worked 20,000 machine-hours and produced 14,000 units. The company had originally planned to work 22,000 machine-hours during March. References Required: 1. Prepare a flexible budget for March 2. Prepare a report showing the spending variances for March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a report showing the spending variances for March. (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.) FAB Corporation Spending Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Tota 9:02 PM a 9 () 5/22/2021Question 5 - BONUS HOMEWOR X Homework Help - Q&A from Onl x + - C Dezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBkEPuyDOoj8bFRQ313hkg3vsabe6etcdTXaNzRGoonXGmSqxOPn0oUMMDtta6VZIjnNywAlQ_VBIfCO3b7bkdlvmOGXUYevLy5NU BONUS HOMEWORK i Saved Help Save & Exit Submit 5 ou 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: 10 points Actual Cost in 8 02:56: 52 Cost Formula March Utilities $16,000 + $0.15 per machine-hour Maintenance Skipped $38, 200 + $1.50 per machine-hour $ 21, 100 $ 65,000 Supplies $0.60 per machine-hour $ 13,080 Indirect la $94, 300 + $1.30 per machine-hour Depreciation $68,500 $ 70,200 Book During March, the company worked 20,000 machine-hours and produced 14,000 units. The company had originally planned to work 22,000 machine-hours during March. References Required: 1. Prepare a flexible budget for March 2. Prepare a report showing the spending variances for March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a flexible budget for March. (Input all amounts as positive values.) FAB Corporation Flexible Budget For the Month Ended March 31 Machine-hours Utilities Maintenance Supplies Indirect labor Depreciation Total 9:02 PM a 9 () 5/22/2021
