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 $16,200 $0.13 per nachine-hour $38,400 $1.30 per machine-hour $0.60 per machine-hour $94,400 $2.00 per machine-hour- $68,300 Actual Cost in March. $ 20,990 $ 62,100 $13,600 $141,300 $ 70,000 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. 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 2

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 $16,200 $0.13 per nachine-hour $38,400 $1.30 per machine-hour $0.60 per machine-hour $94,400 $2.00 per machine-hour- $68,300 Actual Cost in March. $ 20,990 $ 62,100 $13,600 $141,300 $ 70,000 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. 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 2

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Description: Do not give answer in image 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 bette

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 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 $16,800 + $0.16 per machine-hour $ 21,800 Maintenance $38,000 + $1.40 per machine-hour $ 59,800 Supplies $0.40 per machine-hour $ 7,800 Indirect labor $94,700 + $1.80 per machine-hour $ 131,600 Depreciation $67,800 $ 69,500 During March, the company worked 18,000 machine-hours and produced 12,000 units. The company had originally planned to work 20,000…
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 $16,900 $0.14 per machine-hour $38, 300+ $1.30 per machine-hour $0.70 per machine-hour $94,700+ $1.50 per machine-hour $68, 100 Actual Cost in March $ 21,360 $ 56,800 $ 13, 100 $ 124, 100 $ 69,808 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…
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 $16,800 + $0.16 per machine-hour $ 22,600 Maintenance $38,300 + $1.50 per machine-hour $ 69,600 Supplies $0.90 per machine-hour $ 22,300 Indirect labor $94,200 + $1.70 per machine-hour $ 137,600 Depreciation $68,300 $ 70,000 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 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 $ 21,540 $ 52,900 Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,700 + $0.16 per machine-hour $38,200 + $1.10 per machine-hour $0.80 per machine-hour $94,200+ $1.40 per machine-hour $68, 200 $ 15,000 $ 121,700 $ 69,900 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.…
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 $ 22,080 $ 78,500 $ 15,200 $ 133,000 $ 69,600 Cost Formula $16,100 + $0.19 per machine-hour $38,500 + $2.10 per machine-hour $0.70 per machine-hour $94,700 + $1.70 per machine-hour $67,900 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.…
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 Utilities $16,200 + $0.21 per machine-hour Maintenance $38,900 + $1.20 per machine-hour Supplies $0.80 per machine-hour Indirect labor $94,300 + $1.30 per machine-hour Depreciation $67,500 Actual Cost in March $ 21,990 $ 55,500 $ 15,000 $ 119,900 $ 69,200 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.…
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 $17,000+ $0.12 per machine-hour $38,300+ $1.70 per machine-hour $0.50 per machine-hour During March, the company worked 16,000 machine-hours and produced 10,000 units. The company had originally planned to work 18,000 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: Cost Formula Actual Cost in March Utilities $16,300 + $0.11 per machine-hour $ 20,740 Maintenance $38,300 + $2.00 per machine-hour $ 80,100 Supplies $0.70 per machine-hour $ 16,600 Indirect labor $94,900 + $2.00 per machine-hour $ 143,800 Depreciation $68,000 $ 69,700 During March, the company worked 22,000 machine-hours and produced 16,000 units. The company had originally planned to work 24,000…
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 FormulaActual Cost in MarchUtilities$17,000 + $0.12 per machine-hour$ 21,080Maintenance$38,500 + $1.30 per machine-hour$ 57,000Supplies$0.60 per machine-hour$ 11,200Indirect labor$94,500 + $1.60 per machine-hour$ 125,800Depreciation$68,300$ 70,000 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. Required:1.…
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, 200 $ 78, 300 $ 16,600 $ 128,600 $ 70,100 Cost Formula $16,800 + $0.15 per machine-hour $38,900 + $1.98 per machine-hour $0.70 per machine-hour $94,100 + $1.40 per machine-hour $68,400 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…
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 $ 19,720 Maintenance $38,900 + $2.10 per machine-hour $ 66,300 Supplies $0.60 per machine-hour $ 9,400 Indirect labor $94,400 + $1.20 per machine-hour $ 114,500 Depreciation $67,800 $ 69,500 During March, the company worked 14,000 machine-hours and produced 8,000 units. The company had originally planned to work 16,000…
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 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.…