Question

In: Accounting

3.After much effort and analysis, you determined the following cost formulas and gathered the following actual...

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.

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