In: Accounting
3.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 | $16,900 + $0.18 per machine-hour | $ | 22,120 |
Maintenance | $38,700 + $1.20 per machine-hour | $ | 55,300 |
Supplies | $0.70 per machine-hour | $ | 13,100 |
Indirect labor | $94,100 + $1.80 per machine-hour | $ | 129,200 |
Depreciation | $68,200 | $ | 69,900 |
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.