2. 10.00 points You have just been hired by FAB Corporation, the manufacturer of

Question

2. 10.00 points 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 company's 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. 9 After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: in S 20,310 $16,200 plus $0.11 per $38,800 plus $1.40 per machine-hour $0.40 per machine-hour $94,700 plus $1.40 per machine-hour $67,800 $62,000 $ 8,200 $125,000 69,500 Indirect labor

Explanation / Answer

Flexible budget :

Spending variance

Utilities 18290 Maintenance 65400 Supplies 7600 Indirect labour 121300 Depreciation 67800 Total 280390

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