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:Actual Cost inMarchCost FormulaUtilitiesHaintenanceSuppliesIndirect laborDepreciation$16,600 + So.14 per machlne-hour$38,100 + $1.40 per machine-hour$0.80 per machine-hour$94,600 + $1.30 per machine-hour$68,000$ 20,640$ 54, 300$ 12,600$ 116,300$ 69,700During March, the company worked 14,000 machine-hours and produced 8,000 units. The company had originally planned to work16,000 machine-hours during March.Required:1. Prepare a flexible budget for March.2. Prepare a report showing the spending variances for March.Complete this question by entering your answers in the tabs below.Required 1Required 2Prepare a flexible budget for March. (Input all amounts as positive values.)FAB CotporationFlexible BudgetFor the Month Ended March 31Machine-hoursUtilitiesMaintenanceSupplies

The spending variance is the difference between actual budget and flexible budget of the production.

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 Cost Formula March Utilities Haintenance Supplies Indirect labor Depreciation $16,600 + s0.14 per machine-hour $38,100 $1.40 per machine-hour s0.80 per machine-hour $94,600 + $1.30 per machine hour $68,000 $ 20,640 $ 54,300 $ 12,600 $ 116, 300 $ 69,700 During March, the company worked 14,000 machine-hours and produced 8,000 units. The company had originally planned to work 16,000 machine-hours during March. Required: 1. Prepare a flexible budget for March. 2. Prepare a report showing 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: Actual Cost in Cost Formula March Utilities Haintenance Supplies Indirect labor Depreciation $16,600 + s0.14 per machine-hour $38,100 $1.40 per machine-hour s0.80 per machine-hour $94,600 + $1.30 per machine hour $68,000 $ 20,640 $ 54,300 $ 12,600 $ 116, 300 $ 69,700 During March, the company worked 14,000 machine-hours and produced 8,000 units. The company had originally planned to work 16,000 machine-hours during March. Required: 1. Prepare a flexible budget for March. 2. Prepare a report showing 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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You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president asked you to review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find the company has never used a flexible budget, and you suggest preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you estimated the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,700 + $0.20 per machine-hour $38,100 + $1.30 per machine-hour $0.30 per machine-hour $94,500+ $1.60 per machine-hour $68,300 Actual Cost in March $ 23,500 $ 64,400 $ 7,300 $ 135,400 $ 70,000 During March, the company worked 23,000 machine-hours and produced 17,000 units. The company originally planned to work 25,000 machine-hours during March. Required: 1. Calculate…
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president asked you to review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find the company has never used a flexible budget, and you suggest preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you estimated the following cost formulas and gathered the following actual cost data for March Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,400 + $0.19 per machine-hour $38,100 +$1.60 per machine-hour $0.60 per machine-hour $94,400 +$1.60 per machine-hour $67,600 Actual Cost in March $ 21,810 $ 62,300 $ 11,200 $ 125,700 $ 69,300 During March, the company worked 17,000 machine-hours and produced 11,000 units. The company originally planned to work 19,000 machine-hours during March. Required: 1. Calculate…
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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 $ 22,180 $ 75,300 $ 16,600 $ 131,000 $ 69,200 Utilities Maintenance Supplies Indirect labor Depreciation 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. Cost Formula $16,300 + $0.17 per machine-hour $38,300+ $1.80 per machine-hour $0.70 per machine-hour Required: 1. Prepare a flexible budget…
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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 $ 24,200 $ 78,100 Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $20,600 + $0.10 per machine-hour $40,000 +$1.60 per machine-hour $0.30 per machine-hour $130,000 + $0.70 per machine-hour $70,000 $ 8,400 $ 149,600 $ 71,500 During March, the company worked 26,000 machine-hours and produced 15,000 units. The company had originally planned to work 30,000 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: Cost Formula Actual Cost in March Utilities $16,000 + $0.12 per machine-hour $ 19,960 Maintenance $38,700 + $2.00 per machine-hour $ 68,500 Supplies $0.80 per machine-hour $ 14,200 Indirect labor $94,500 + $1.90 per machine-hour $ 129,600 Depreciation $67,800 $ 69,500 During March, the company worked 16,000 machine-hours and produced 10,000 units. The company had originally planned to work 18,000…
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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: Cost Formula Actual Cost in March Utilities $16,000 + $0.21 per machine-hour $ 23,050 Maintenance $38,200 + $1.80 per machine-hour $ 77,000 Supplies $0.80 per machine-hour $ 19,800 Indirect labor $94,800 + $1.60 per machine-hour $ 135,700 Depreciation $67,900 $ 69,600 During March, the company worked 23,000 machine-hours and produced 17,000 units. The company had originally planned to work 25,000…
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president asked you to review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find the company has never used a flexible budget, and you suggest preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you estimated the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,900 + $0.15 per machine-hour $38,600 + $1.80 per machine-hour $0.30 per machine-hour $94,300 + $1.30 per machine-hour $67,500 Actual Cost in March $ 21,400 $ 64,800 $ 5,200 $ 118,600 $ 69,200 During March, the company worked 16,000 machine-hours and produced 10,000 units. The company originally planned to work 18,000 machine-hours during March. Required: 1.…
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