"You work at a manufacturing plant and your supervisor has requested that you review the companys costing system because the company trying to better understand and control their costs. The schedules below include the cost formulas your company uses to create their flexible budget and the schedule of March's actual cost data:" Cost Formulas: Actual Costs in March Utilities $16,600 plus $0.18 per machine-hour Utilities $22,360 Maintenance $38,800 plus $2.00 per machine-hour Maintenance $76,600 Supplies $0.30 per machine-hour Supplies $6,400 Indirect labor $95,000 plus $1.50 per machine-hour Indirect labor $128,900 Depreciation $67,800 Depreciation $69,500 During March, the company actually worked 20,000 machine-hours and produced 14,000 units. The company had originally planned to work 22,000 machine-hours during March.

Prepare a flexible budget for March: Flexible budget Utilities $16,600+.18*20,000 $20,200.00 Maintenance 38,800+2.80*20,000 $78,800.00 Supplies .20*20,000 $6,000.00 Indirect Labor 95,000+1.50*20,000 $125,000.00 Depreciation $67,800.00 Total $297,800.00 Prepare a report showing the spending variances for March. Be sure to calculate the total spending variance as well. Indicate whether each individual variance and the total spending variance is favorable or unfavorable.

After calculating the numerical variances, provide a brief explanation of your variances, including a discussion of which variances should be further investigated. Actual Spending Variance Flexible Budget Utilities 22,360 2,160-Unfavorable $20,200.00 Maintenance 76,600 2,200-Favorable $78,800.00 Supplies 6,400 400-Unfavorable $6,000.00 Indirect Labor 128,900 3,900-Unfavorable $125,000.00 Depreciation 69,500 1,700-Favorable $67,800.00 Total 303,760 5,960-Unfavorable $297,800.00

. B I Ur tv = - - x fx Completing a Master Budget (LO7-2, LO7-4, LO7-7, LO7-8, L07-9, LO7-10) You work at a manufacturing plant and your supervisor has requested that you review the company's costing system because the company trying to better understand and control their costs. The schedules below include the cost formulas your company uses to create their flexible budget and the schedule of March's act cost data: Utilities Maintenance Supplies Indirect labor Depreciation Cost Formulas: $16,600 plus $0.18 per machine-hour $38,800 plus $2.00 per machine-hour $0.30 per machine-hour $95,000 plus $1.50 per machine hour $67.300 Actual Costs in March Utilities $ 22,360 Maintenance $ 76,600 Supplies $ 6,400 Indirect labor $ 128,900 Depreciation $ 69,500 During March, the company actually worked 20,000 machine-hours and produced 14,000 units. The company had originally planned to work 22,000 machine hours during March. eqi Prepare a flexible budget for March: Flexible budget Utilities $16,600+.18 20,000 Maintenance 38,800+2.80*20,000 Supplies 20*20,000 Indirect Labor 95,000+1.50*20,000 Depreciation Total $20,200.00 $78,800.00 $6,000.00 $125,000.00 $67,800.00 $297,800.00 Req2 Prepare a report showing the spending variances for March. Be sure to calculate the total spending variance as well. Indicate whether each individual variance and the total spending variance is favorable or unfavorable. After calculating the numerical variances, provide a brief explanation of your variances, including a discussion of which variances should be further investigated Actual Utilities Maintenance Supplies Indirect Labor Depreciation Spending Variance Flexible Budget 22,360 2,160-Unfavorable $20,200.00 76,600 2,200-Favorable $78,800.00 6,400 400-Unfavorable $6,000.00 128,900 3,900-Unfavorable $125,000.00 69,500 1,700-Favorable $67,800.00 303,760 5,960-Unfavorable $297,800.00 Problem 1 Problem 2