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 $16,600 + $0.21 per machine-hour $38,300 +$1.50 per machine-hour $0.40 per machine-hour $94,800+ $1.50 per machine-hour $68,200 Actual Cost in March $ 23,440 $ 68,100 $ 9,400 $ 131,700 $ 69,900

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Utilities
Maintenance
Supplies
Indirect labor
Depreciation
Cost Formula
$16,600 + $0.21 per machine-hour
$38,300 + $1.50 per machine-hour
$0.40 per machine-hour
$94,800 + $1.50 per machine-hour
$68,200
$ 23,440
$ 68,100
$ 9,400
$ 131,700
$ 69,900
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. 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 1
Required 2
Prepare a report showing 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.)
FAB Corporation
Spending Variances
For the Month Ended March 31
Utilities
Maintenance
Supplies
Indirect labor
Depreciation
Total
$
2,220 U
3,200 F
800 U
3,900 U
1,700 U
$
5,420 U
< Required 1
Required 2 >
Transcribed Image Text: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 Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,600 + $0.21 per machine-hour $38,300 + $1.50 per machine-hour $0.40 per machine-hour $94,800 + $1.50 per machine-hour $68,200 $ 23,440 $ 68,100 $ 9,400 $ 131,700 $ 69,900 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. 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 1 Required 2 Prepare a report showing 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.) FAB Corporation Spending Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total $ 2,220 U 3,200 F 800 U 3,900 U 1,700 U $ 5,420 U < Required 1 Required 2 >
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