You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president hasasked that you review the company's costing system and "do what you can to help us get better control of our manufacturingoverhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would bean 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 March:UtilitiesMaintenanceSuppliesIndirect laborDepreciation.Cost Formula$16,800+ $0.12 per machine-hour$38,700+ $2.10 per machine-hour$0.50 per machine-hour$94,600+ $1.40 per machine-hour$68,400During March, the company worked 22,000 machine-hours and produced 16,000 units. The company had originally planned to work24,000 machine-hours during March.Required:1. Calculate the activity variances for March.2. Calculate the spending variances for March.Complete this question by entering your answers in the tabs below.Required 1 Required 2Actual Costin March$ 21,480$82,900$ 11,800$ 129,100$ 70,100UtilitiesMaintenanceSuppliesIndirect laborDepreciationTotalCalculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)FAB CorporationActivity VariancesFor the Month Ended March 31

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Description: You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president hasasked that you review the company's costing system and "do what you can to help us get better control of our manufactur

The variance is the difference between the actual data and standard output of the production. The…

Business

Accounting

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 effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,800+ $0.12 per machine-hour $38,700+ $2.10 per machine-hour $0.50 per machine-hour $94,600+ $1.40 per machine-hour $68,400 Actual Cost in March. $ 21,480 82,900 $ $ 11,800 $ 129,100 $ 70,100 During March, the company worked 22,000 machine-hours and produced 16,000 units. The company had originally planned to work 24,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March.

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 effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,800+ $0.12 per machine-hour $38,700+ $2.10 per machine-hour $0.50 per machine-hour $94,600+ $1.40 per machine-hour $68,400 Actual Cost in March. $ 21,480 82,900 $ $ 11,800 $ 129,100 $ 70,100 During March, the company worked 22,000 machine-hours and produced 16,000 units. The company had originally planned to work 24,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March.

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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Vishnu
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 effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost in March $ 22,840 Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,900 + $0.18 per machine-hour $39,000 + $1.20 per machine-hour $0.50 per machine-hour $94,200 + $1.60 per machine-hour $67,600 $ 60,400 $ 11,300 $ 131,900 $ 69,300 During March, the company worked 21,000 machine-hours and produced 15,000 units. The company had originally planned to work 23,000 machine-hours during March.…
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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 effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost in March $ 21,520 Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,300 + $0.18 per machine-hour $38,300 + $1.80 per machine-hour $0.80 per machine-hour $94,700 + $1.70 per machine-hour $68,000 $ 66,300 $ 15,000 $ 127,900 $ 69,700 During March, the company worked 17,000 machine-hours and produced 11,000 units. The company had originally planned to work 19,000 machine-hours during March.…
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Jata
Complète both requirement asap please
Please show your work.
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 effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,000+ $0.19 per machine-hour $38,900 $1.30 per machine-hour $0.40 per machine-hour $94,000+ $1.20 per machine-hour $67,500 Actual Cost in March $ 22,390 Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March. $60,000 $ 8,200 $120, 100 $ 69,200 During March, the company worked 19,000 machine-hours and produced 13,000 units. The company had originally planned to work 21,000 machine-hours during March.
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Mel Gibbeson has recently graduated from a business school and has joined the family business as anaccountant. At the first management meeting with production, marketing and sales, a great deal oftime was spent discussing the unit cost of products.Required: What kinds of decisions can managers make using the unit cost information?( explain briefly your answer) (use your own words to avoid plagirism)