My spending variance for outside repairs and my total spending variances gives m

Question

My spending variance for outside repairs and my total spending variances gives me incorrect answers. May you advice?

Farrar 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 operated with 21 vehicles until February, when an additional automobile was acquired at the request of the university administration. 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. Each year, the supervisor of the motor pool prepares an annual budget, which is reviewed by the university and approved after suitable modifications The following cost control report shows actual operating costs for March of the current year compared to one-twelfth of the annual budget. Farrar University Motor Pool For the Month Ended March 31 Annual Cost Control Report Monthly Budget (1/12 of Annual Budget) March Actual (Over) Under Budget Budget 597,600 Miles Autos Gasoline Oil, minor repairs, parts Outside repairs Insurance Salaries and benefits Vehicle depreciation 49,800 57,800 $ 89,640 89,640 9,828 21,924 103,320 53,424 $ 7,470 7,470 819 1,827 8.610 4.452 $ 8,400 $ (930) (330) (171) (123) 7,800 990 1.950 8,610 4,664 (212) Total $ 367,776 $ 30,648 $32,414 $(1,766) The annual budget was based on the following assumptions a. $0.15 per mile for gasoline b. $0.15 per mile for oil, minor repairs, and parts c. $468 per automobile per year for outside repairs d. $1,044 per automobile per year for insurance e. $8,610 per month for salaries and benefits f. $2,544 per automobile per year 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

Explanation / Answer

assumption Flexible budget Actual results Spending variance Outside repairs 39 858 990 132 U Total 33386 32414 972 F

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