Answer 1 - Activity variances for
March
|
|
Budgeted Costs in March for
16000 units |
Budgeted Costs in March for
14000 units |
Activity variances |
|
|
Utilities |
$
18,620 |
$
18,380 |
$
240 |
F |
|
Maintenance |
$
61,000 |
$
58,200 |
$
2,800 |
F |
|
Supplies |
$
4,800 |
$
4,200 |
$
600 |
F |
| Indirect
labor |
$
112,000 |
$
109,800 |
$
2,200 |
F |
|
Depreciation |
$
68,500 |
$
68,500 |
$
- |
F |
|
Total |
$
264,920 |
$
259,080 |
$
5,840 |
F |
Answer 2 - Spending variances for
March.For above part, machine hours are taken as
16,000 hours.
|
|
Budgeted Costs in March |
Actual Cost in March |
Activity variances |
|
|
Utilities |
$
18,380 |
$
20,420 |
$
2,040 |
U |
|
Maintenance |
$
58,200 |
$
54,800 |
$
3,400 |
F |
|
Supplies |
$
4,200 |
$
4,600 |
$
400 |
U |
|
Indirect labor |
$
109,800 |
$
112,900 |
$
3,100 |
U |
|
Depreciation |
$
68,500 |
$
70,200 |
$
1,700 |
U |
|
Total |
$
259,080 |
$
262,920 |
$
3,840 |
U |
For the above part, machine hours are taken as 14,000 hours.
In case of any doubt, please comment.
