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 companys 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.
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, Actual cont in Cost Formula March Utilities $16,300 + $0.16 per machine-hour $ 21,780 Maintenance $38,800 - $1.10 per machine-hour $ 37,900 Supplies $0.40 per machine-hour $ 9,000 Indirect labor $94,200 + $1.70 per machine-hour Depreciation $68,100 $ 69,800 During March, the company worked 21000 machine-hours and produced 15,000 units. The company had originally planned to work 23,000 machine-hours during March Required: 1. Prepare a flexible budget for March 2. Prepare a report showing the spending variances for March 5 134,200 Answer is not complete 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 Required: 1. Prepare a flexible budget for March. 2. Prepare a report showing the spending variances for March. X Answer is not complete. 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 21,000 Utilities $ 19,660 Maintenance 61,900 Supplies 8,400 Indirect labor 129,900 Depreciation 68,100 Total Required 1 Required 2 > Required: 1. Prepare a flexible budget for March 2. Prepare a report showing the spending variances for March Answer is not complete. 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 (.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 Total
