You have just been hired by OpenDoor 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. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for April: Cost Formula Actual Cost in April Utilities $17,900 plus $0.18 per machine-hour $ 23,860 Maintenance $39,800 plus $1.50 per machine-hour $ 66,050 Supplies $0.50 per machine-hour $ 10,250 Indirect labor $95,400 plus $1.75 per machine-hour $ 135,100 Depreciation $68,700 $ 71,500 During April, the company worked 20,000 machine-hours andproduced 15,000 units. The company had originally planned to work 22,000 machine-hours during April. Required:

1. Prepare a flexible budget for April:

OpenDoor Corporation
Flexible Budget
For the Month Ended April 30
	Flexible Budget
Machine-hours
Utilities
Maintenance
Supplies
Indirect labor
Depreciation
Total

2. Prepare a report showing the spending variances for April. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

OpenDoor Corporation
Spending Variances
For the Month Ended April 30
	Flexible Budget	Actual Results	Spending Variances
Utilities
Maintenance
Supplies
Indirect labor
Depreciation
Total