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You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president asked you to review the
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president asked you to review the company's costing system and do what you can to help us get better control of our manufacturing overhead costs." You find the company has never used a flexible budget, and you suggest preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you estimated the following cost formulas and gathered the following actual cost data for March: During March, the company worked machinehours and produced units. The company originally planned to work machinehours during March. Required: Calculate the activity variances for March. Calculate the spending variances for March. Complete this question by entering your answers in the tabs below. Required Required Calculate the activity variances for March. Note: Indicate the effect of each yarlance by selecting P for favorable, y tor unfavorable and vone for no effect e zero variance Input all amounts as positive yalues tableFAB CorporationActivity VariancesFor the Month Ended March UtiliesMaintenanceSuppllesIndirect laborDeproclationTolalYou have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president asked you to review the company's costing system and do what you can to help us get better control of our manufacturing overhead costs" You find the company has never used a flexible budget, and you suggest preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you estimated the following cost formulas and gathered the following actual cost data for March: tableCost Formula,tableActual Costin MarchtableUtilitiesMaintenanceSupptiesIndirect laborDepreciationtable$$ per machinehour$$ per machinehour$ per nachinehour$$ per machinehour$
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president asked you to review the company's costing system and do what you can to help us get better control of our manufacturing overhead costs." You find the company has never used a flexible budget, and you suggest preparing such a budget would be an excellent first step in overhead planning and control.
After much effort and analysis, you estimated the following cost formulas and gathered the following actual cost data for March:
During March, the company worked machinehours and produced units. The company originally planned to work machinehours during March.
Required:
Calculate the activity variances for March.
Calculate the spending variances for March.
Complete this question by entering your answers in the tabs below.
Required
Required
Calculate the activity variances for March.
Note: Indicate the effect of each yarlance by selecting P for favorable, y tor unfavorable and vone for no effect e zero variance Input all amounts as positive yalues
tableFAB CorporationActivity VariancesFor the Month Ended March UtiliesMaintenanceSuppllesIndirect laborDeproclationTolalYou have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president asked you to review the company's costing system and do what you can to help us get better control of our manufacturing overhead costs" You find the company has never used a flexible budget, and you suggest preparing such a budget would be an excellent first step in overhead planning and control.
After much effort and analysis, you estimated the following cost formulas and gathered the following actual cost data for March:
tableCost Formula,tableActual Costin MarchtableUtilitiesMaintenanceSupptiesIndirect laborDepreciationtable$$ per machinehour$$ per machinehour$ per nachinehour$$ per machinehour$
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