Calculate the spending variances for March. (Indicate the effect o unfavorable, and "None" for no effect (i.e., zero variance). Input FAB Corporation Spending Variances For the Month Ended March 31 Utilities 2$ 2,040 OU Maintenance 2,000 Supplies 1,400 OU Indirect labor 4,100 OU Depreciation 1,700 OU Total 2$ 11,240 X U %24

FINANCIAL ACCOUNTING
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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 effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:
Actual
Cost in
Cost Formula
March
$16,100 + $0.12 per machine-hour
$38,100 + $2.10 per machine-hour
$0.80 per machine-hour
$94,300 + $1.60 per machine-hour
$68, 200
$ 20,540
$ 78,100
$ 17,400
$130,400
$ 69,900
Utilities
Maintenance
Supplies
Indirect labor
Depreciation
During March, the company worked 20,000 machine-hours and produced 14,000 units. The company had originally planned to work
22,000 machine-hours during March.
Required:
1. Calculate the activity variances for March.
2. Calculate the spending variances for March.
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 effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost in Cost Formula March $16,100 + $0.12 per machine-hour $38,100 + $2.10 per machine-hour $0.80 per machine-hour $94,300 + $1.60 per machine-hour $68, 200 $ 20,540 $ 78,100 $ 17,400 $130,400 $ 69,900 Utilities Maintenance Supplies Indirect labor Depreciation During March, the company worked 20,000 machine-hours and produced 14,000 units. The company had originally planned to work 22,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March.
X Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
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.)
FAB Corporation
Spending Variances
For the Month Ended March 31
Utilities
24
2,040
U
Maintenance
2,000
F
Supplies
1,400
U
Indirect labor
4,100
U
Depreciation
1,700
Total
11,240
Transcribed Image Text:X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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.) FAB Corporation Spending Variances For the Month Ended March 31 Utilities 24 2,040 U Maintenance 2,000 F Supplies 1,400 U Indirect labor 4,100 U Depreciation 1,700 Total 11,240
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