Solution-Calculate the spending variances for March

Calculate the spending variances for March

Assignment Help Managerial Accounting

Reference no: EM133088169

Question - 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 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 determine the following cost formulas and gathered the following actual cost data for March:

	Cost formula	Actual cost in March
Utilities	$16,400 + $0.20 per machine-hour	$23,000
Maintenance	$38,800 + $ 1.50 per machine-hour	$68,600
Supplies	$0.80 per machine - hour	$19,000
Indirect labor	$94,200 + $1.20 per machine-hour	$123,900
Depreciation	$68,300	$70,000

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 variance for March?

2. Calculate the spending variances for March?

Reference no: EM133088169

Questions Cloud

How much will be each payment : Payments will be made at the end of each month. Interest rate is 8%. How much will be each payment assuming you will pay-off the entire boat at the end

What amount will be received as payment : A credit sale of $4700 is made on April 25, terms 2/10, net/30, on which a return of $250 is granted on April 28. What amount will be received as payment

What are the number of days required : The simple interest rate on the statement was 10 1/3% p.a. For how many days was Mac charged? interest? What are the number of days required

Prepare a materials purchases budget for Gilden : Prepare a materials purchases budget for Gilden, by month and in total, for the third quarter. Also, prepare a schedule of expected cash payments for Gilden

Calculate the spending variances for March : During March, the company worked 22,000 machine-hours and produced 16,000 units. Calculate the spending variances for March

Calculate the cost per minute of the resource supplied : Stahl Company is conducting a time-driven activity-based costing study in its Shipping Department. Calculate the cost per minute of the resource supplied

What is the opportunity cost in dollar value to the church : With the homeless shelter, the utilities will increase to $1,300 per month. What is the opportunity cost in dollar value to the church of operating a shelter

By how much will income from operations increase or decrease : If Autoshop buys the part for $12 instead of making it, by how much will income from operations increase or decrease

Prepare computations to show the net dollar advantage : Han Products manufactures 55,500 units of part S-6 each year for use on its production line. Prepare computations to show the net dollar advantage

User Account

All Pages

Calculate the spending variances for March

Reference no: EM133088169

Reference no: EM133088169

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT