Calculate the spending 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.) The planning budget was based on the following assumptions:a. $0.15 per mile for gasoline.b. $0.15 per mile for oll, minor repalrs, and parts.c. $39 per automobile per month for outside repairs.d. $87 per automobile per month for Insurance.e. $8,610 per month for salarles and benefits.f. $212 per automobile per month for depreciation.The supervisor of the motor pool is unhappy with the report, clalming it palnts an unfalr picture of the motor pool's performance.Requlred:1. Calculate the spending varlances for March. (Indicate the effect of each varlance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values.)Boyne University Motor PoolSpending VariancesFor the Month Ended March 31GasolineOil, minor repairs, partsOutside repairsInsuranceSalaries and benefitsVehicle depreciationTotal Case 9-25 (Algo) Critiquing a Report; Calculating Spending Variances (LO9-3, L09-5]Boyne University offers an extensive continuing education program in many cities throughout the state. For the convenience of itsfaculty and administrative staff and to save costs, the university operates a motor pool. The motor pool's monthly planning budget isbased on operating 21 vehicles; however, for the month of March the university purchased one additional vehicle. The motor poolfurnishes gasoline, oil, and other supplies for its automobiles. A mechanic does routine maintenance and minor repairs. Major repairsare performed at a nearby commercial garage.The following cost control report shows actual operating costs for March of the current year compared to the planning budget forMarch.Boyne University Motor PoolCost Control ReportFor the Month Ended March 31(Over)UnderPlanningBudget49,800MarchActual57,800BudgetMilesAutos2221GasolineOil, minor repairs, partsOutside repairs$ 8,4007,800$ 7,4707,47024(930)(330)(171)(123)990819Insurance1,9508,6104,6641,8278,6104,452$ 30, 648Salaries and benefitsVehicle depreciation(212)$ (1,766)Total$ 32,414

Spending variances occur due to differences in the actual and budgeted rates.Computation of Actual Rates: Computation of the Spending Variances: Thus, the spending variance is $971.99 Favorable.

Business

Accounting

The planning budget was based on the following assumptlons: a. $0.15 per mile for gasoline. b. $0.15 per mile for ol, minor repalrs, and parts. c. $39 per automobile per month for outside repairs. d. $87 per automobile per month for insurance. e. $8,610 per month for salarles and benefits. f. $212 per automobile per month for depreciation. The supervisor of the motor pool is unhappy with the report, claiming it palnts an unfalr picture of the motor pool's performance. Required: 1. Calculate the spending varlances for March. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positlve values.)

The planning budget was based on the following assumptlons: a. $0.15 per mile for gasoline. b. $0.15 per mile for ol, minor repalrs, and parts. c. $39 per automobile per month for outside repairs. d. $87 per automobile per month for insurance. e. $8,610 per month for salarles and benefits. f. $212 per automobile per month for depreciation. The supervisor of the motor pool is unhappy with the report, claiming it palnts an unfalr picture of the motor pool's performance. Required: 1. Calculate the spending varlances for March. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positlve values.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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