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an excelle st step in verhead planning and After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost Cost Formula in March Utilities $16,500 + $0. 12 per machine-hour $ 20, 580 Maintenance $38, 700 + $1.30 per machine-hour $57, 200 Supplies $0.80 per machine-hour $ 15, 000 Indirect labor $94, 600 + $1.40 per machine-hour $ 122, 100 Depreciation $67 , 700 $ 69, 400 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. 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 Calculate the activity 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 Activity Variances For the Month Ended March 31 Utilities |$ 360 X F V Maintenance 3,800 X F Supplies 1,200 X F V Indirect labor 3,400 X F V Depreciation ONone Total $ 8,760 X F V Required 1 Required 2 >After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost Cost Formula in March Utilities $16,500 + $0.12 per machine-hour $ 20, 580 Maintenance $38, 700 + $1.30 per machine-hour 57, 200 Supplies $0.80 per machine-hour $ 15, 000 Indirect labor $94, 600 + $1. 40 per machine-hour $ 122, 100 Depreciation $67, 700 $ 69, 400 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. 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 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 $ 2, 160 X U V Maintenance 2,400 X F V Supplies 1,000 X U V Indirect labor 4,300 X U V Depreciation 1,700 U V Total $ 6,760 X U V AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Revenue $ 278 $ 30,610 Technician wages is 8,500 $ 8,350 Mobile lab operating expenses $ 4,900 $ 35 $ 8,940 Office expenses $ 2,400 $ 3 $ 2,610 Advertising expenses 35 1,560 $ 1,630 Insurance is 2,870 $ 2,870 Miscellaneous expenses $ 970 $ 2 $ 515 The company uses the number ofjobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $35 perjob, and the actual mobile lab operating expenses for February were $8,940. The company expected to work 120jobs in February, but actually worked 130 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February. (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.) 6 Answer is complete but not entirely correct. Revenue $30,610 Revenue and Spending a Variances Activity Variances o Expenses: Technician wages 8,350 Mobile lab operating expenses 8.940 Ofce expenses 2,610 Advertising expenses 1.630 Insurance 2,870 Miscellaneous expenses 515 Total expense Net operating income $ 5,695 formulas, where q is the number of labor-hours worked in a month: Direct labor $16.50q Indirect labor $4,800 + $2.10q Utilities $5,400 + $0.40q Supplies $1,600 + $0.30q Equipment depreciation $18,100 + $2.70q Factory rent $8,600 Property taxes $2,900 Factory administration $13,800 + $0.60q The Production Department planned to work 4,400 labor-hours in March; however, it actually worked 4,200 labor-hours during the month. Its actual costs incurred in March are listed below: Direct labor $ 70,920 Indirect labor $ 13,220 Utilities $ 7,550 Supplies $ 3,130 Equipment depreciation $ 29,440 Factory rent $ 9,000 Property taxes $ 2,900 Factory administration $ 15,670 Required: 1. Prepare the Production Department's planning budget for the month. 2. Prepare the Production Department's flexible budget for the month. 3. Prepare the Production Department's flexible budget performance report for March, including both the spending and activity vaancea Prepare the Production Department's exible budget performance report for March, including both the spending and activity variances. (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.) Spending Activity 9 Variances Variances Direct labor as 70,920 $ 73,260 9 F 0 $ 69,300 0 Indirect labor 13,220 F 9 Utilities 7,550 F 0 m . 0 Equipment depreciation 29,440 F a Factory rent 9,000 o 8.690 9 90 9 None 9 Property taxes 2.900 None 0 2.900 0 0 0 None 0 Factory administration 15,670 a 16,440 a 120 9 F 9 16,320 0 Total expense $ 151,830 a $155 300 6 $ 5,180 6 F a $150,120 0

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