Please do not give solution in image format thanku Boyne University offers an extensive continuing education program in many cities throughout the state. For the convenience of itsfaculty and administrative staff and to save costs, the university operates a motor pool. The motor pool's monthly planning budget isbased on operating 24 vehicles; however, for the month of March the university purchased one additional vehicle. The motor poolfurnishes gasoline, oil, and other supplies for its automobiles. A mechanic does routine maintenance and minor repairs. Major repairsare performed at a nearby commercial garage.The following cost control report shows actual operating costs for March of the current year compared to the planning budget forMarch.MilesAutosGasolineBoyne University Motor PoolCost Control ReportFor the Month Ended March 311oil, minor repairs, partsOutside repaireInsuranceSalaries and benefitsVehicle depreciationTotalMarchActual58,40025$ 11,0534,8701,230PlanningBudget50,400242,0208,6105,100$ 32,883$ 10,0804,5361,0561,8968,6104,896$ 31,074The planning budget was based on the following assumptions:b. $0.20 per mile for gasoline.b. $0.09 per mile for oil, minor repairs, and parts.E. $44 per automobile per month for outside repairs.d. $79 per automobile per month for insurance.(Over)UnderBudget$ (973)(334)(174)(124)0(204)$ (1,809)e. $8,610 per month for salaries and benefits.t. $204 per automobile per month for depreciation.The supervisor of the motor pool is unhappy with the report, claiming it paints an unfair picture of the motor pool's performance. The supervisor of the motor pool is unhappy with the report, claiming it paints an unfair picture of the motor pool's performance.Required:1. Calculate the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)Boyne University Motor PoolSpending VariancesFor the Month Ended March 31GasolineOil, minor repairs, partsOutside repairsInsuranceSalaries and benefitsVehicle depreciationTotal

Spending variance :— It is the difference between actual cost and flexible cost. Flexible cost :—…

Boyne University offers an extensive continuing education program in many cities throughout the state. For the convenience of its faculty and administrative staff and to save costs, the university operates a motor pool. The motor pool's monthly planning budget is based on operating 24 vehicles; however, for the month of March the university purchased one additional vehicle. The motor pool furnishes gasoline, oil, and other supplies for its automobiles. A mechanic does routine maintenance and minor repairs. Major repairs are performed at a nearby commercial garage. The following cost control report shows actual operating costs for March of the current year compared to the planning budget for March. Miles Autos Gasoline Boyne University Motor Pool Cost Control Report For the Month Ended March 311 oil, minor repairs, parts Outside repaire Insurance Salaries and benefits Vehicle depreciation Total March Actual 58,400 25 $ 11,053 4,870 1,230 2,020 8,610 5,100 $ 32,883 Planning Budget 50,400 24 $ 10,080 4,536 1,056 1,896 8,610 4,896 $ 31,074 The planning budget was based on the following assumptions: (Over) Under Budget $ (973) (334) (174) (124) 0 (204) $ (1,809) b. $0.20 per mile for gasoline. b. $0.09 per mile for oil, minor repairs, and parts. E. $44 per automobile per month for outside repairs. d. $79 per automobile per month for insurance. e. $8,610 per month for salaries and benefits. t. $204 per automobile per month for depreciation. The supervisor of the motor pool is unhappy with the report, claiming it paints an unfair picture of the motor pool's performance.

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 26E: Ingles Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other...