The controller of Leslie Corporation prepared the following forecast income statement for the year: The product's manufacturing processes require two producing departments, which make use

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The controller of Leslie Corporation prepared the following forecast income statement for the year:

The product's manufacturing processes require two producing departments, which make use of the services of the Maintenance Department and the Janitorial Department. To charge the products moving through the two departments, the cost accountant has prepared an overhead distribution sheet and calculated predetermined factory overhead rates as follows:

Actual hours and costs at the end of the month are as follow:

Maintenance Department cost was allocated to the two producing departments on the basis of actual direct labor hours worked. Janitorial Department cost was prorated 50% to the factory producing departments and 50% to marketing and administrative expense. The Machining Department and the Assembly shared the factory allocation of Janitorial Department cost on a 40:60 basis, respectively. For January, the Planning Department scheduled 5,000 units of product to be completed. At the end of the month, sales and production achieved the following results:
Sales .........................................................................4,900 units
Production-completed in both departments ..........................5,200 units
Required:
(1) Compute the budget allowance for each producing department for January, based on (a) scheduled production hours and (b) actual production hours.
(2) Compute spending and idle capacity variances for each producing department, based on actual production hours.
(3) Compute the spending variance for each service department. Round all amounts to three decimal places.

Sales (60,000 units) Cost of goods sold (Schedule 1) Gross profit Commercial expenses: Amount $600,000 384,000 $216,000 Unit $10.00 6.40 $3.60 Marketing expense Administrative expense $80,000 70,000 000 ,000 150 66,000 1 2.50 1.10 Income before income tax Schedule 1-Estimated cost of goods solo: Direct mater Direct labor Factory overhead $1.70 2.70 2.00 $6.40 $102,000 162,000 120,000 Total $384,000 Producing Departments Service Departments Machining Assembly Maintenance Janitorial Production units Direct labor hours.... 60,000 15,000 $90,000 60,000 12,000 $72.000 Factory overhead Variable overhead $27,000 $22,800 S 5,100 $2,700 17,520 7.200 $9,900 34,230 8.400 $13,500 Share of Maintenance cost.. Share of Janitorial cost Share of Janitorial cost 7,500 1, 6,000 13,500) 9802970 (4,950) charged to marketing and administrative expenses.... (4.950 $54,000 $66,000- o- Total factory overhead Factory overhead rates (based on direct labor hours).... 3.60-55 50 Producing Departments Service Departments Machining Assembly Maintenance Janitorial Hours worked. Actual factory overhead 1,340 1,030 Variable overhead.. Fixed overhead.. $2,700 1,500 $2,240 3,000 $650 700 $440 600