bu have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president sked that you review the company's costing system and "do what you can to help us get better control of our manufacturing verhead costs You find that the company has never used a flexible budget, and you suggest that preparing such a budget would nexcellent first step in overhead planning and control. fter much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost in March $ 22, 100 $ 56, 800 $ 13, 800 $119, 100 $ 69, 700 Cost Formula Utilities Maintenancce $16, 100 + $e. 21 per machine-hour $39, 000 + $1.20 per machine-hour $e.78 per machine-hour Supplies Indirect labor $94, 200 + $1.20 per machine-hour Depreciation $68, 000 During March, the company worked 18.000 machine-hours and produced 12,000 units. The company had originally planned to wor 20,000 machine-hours during March.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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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 effart and analysis, you determined the following cost formulas and gathered the following actual cost data for March:
Actual
Cost in
March
$ 22, 100
$ 56, 800
$ 13, 800
$119, 100
$ 69, 700
Cost Formula
Utilities
Maintenance
Supplies
Indirect labor $94, 20e + $1.20 per machine-hour
Depreciation
$16, 100 + $e. 21 per machine-hour
$39, 000 + $1.20 per machine-hour
$e.70 per machine-hour
$68, 000
During March, the company worked 18.000 machine-hours and produced 12,000 units. The company had originally planned to work
20,000 machine-hours during March.
Required:
1 Calcutate the activity veriences for March.
z Calculate the spending vanances for March.
Complete this question by entering your answers in the tabs below.
Raquired
Required 2
Calculate the activity variances for March. (Indicate the effect of each varlance by selectingE tor tavorable U for
UNavorable, end "None for no etfect (1.e zero variance). Input all anmounts es positive values
FAB Corporatioon
Activity Variances
For the Month Ended Match 31
Prev
Transcribed Image Text: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 effart and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost in March $ 22, 100 $ 56, 800 $ 13, 800 $119, 100 $ 69, 700 Cost Formula Utilities Maintenance Supplies Indirect labor $94, 20e + $1.20 per machine-hour Depreciation $16, 100 + $e. 21 per machine-hour $39, 000 + $1.20 per machine-hour $e.70 per machine-hour $68, 000 During March, the company worked 18.000 machine-hours and produced 12,000 units. The company had originally planned to work 20,000 machine-hours during March. Required: 1 Calcutate the activity veriences for March. z Calculate the spending vanances for March. Complete this question by entering your answers in the tabs below. Raquired Required 2 Calculate the activity variances for March. (Indicate the effect of each varlance by selectingE tor tavorable U for UNavorable, end "None for no etfect (1.e zero variance). Input all anmounts es positive values FAB Corporatioon Activity Variances For the Month Ended Match 31 Prev
During March, the company worked 18,000 machine-hours and produced 12,000 units. The company had originally planned to work
20,000 machine-hours during March.
Requlred:
1. Calculate the activity variances for March.
2. Calculate the spending variances for Merch.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for
unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
FAB Corporation
Activity Variances
For the Month Ended March 31
Utes
Maintenance
Supples
Indirect labor
Depreciation
(Total
Required 2
Transcribed Image Text:During March, the company worked 18,000 machine-hours and produced 12,000 units. The company had originally planned to work 20,000 machine-hours during March. Requlred: 1. Calculate the activity variances for March. 2. Calculate the spending variances for Merch. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) FAB Corporation Activity Variances For the Month Ended March 31 Utes Maintenance Supples Indirect labor Depreciation (Total Required 2
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