CSecure https://newconnect t.html Chapter 9 Graded Problems (2 problems) Help Sa

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CSecure https://newconnect t.html Chapter 9 Graded Problems (2 problems) Help Save & Ex Checl 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 15 polnts After much effort and analysls, you determined the following cost formulas and gathered the following actual cost data for March: Cost in Karch 24,200 78,100 20,600 plus $0.10 per machine-hour $40,000 plua $1.60 per machine-hour 0.30 per machine-hour otilieles References 8,400 Bupplies Indirect labor s130,000 plus $0.70 per machine-hour Depreciation $70,000 149,600 s 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. 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 2 4

Explanation / Answer

Calculate activity variance :

Calculate spending variance :

Plannin budget Flexible budget activity variance Utilities 23600 23200 400 F Maintenance 88000 81600 6400 F Supplies 9000 7800 1200 F Indirect labour 151000 148200 2800 F Depreciation 70000 70000 None Total 341600 330800 10800 F

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