Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you have just been hired by fab corporation, the m

You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage...

90.2K

Verified Solution

Question

Accounting

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 companys 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 $16,600 + $0.18 per machine-hour $ 21,820 Maintenance $38,900 + $1.50 per machine-hour $ 61,200 Supplies $0.30 per machine-hour $ 5,500 Indirect labor $94,700 + $1.20 per machine-hour $ 118,400 Depreciation $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. Prepare a flexible budget for March. 2. Prepare a report showing the spending variances for March.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students