Oak Hill Township operates a motor pool with 20 vehicles. The motor pool furnish

Question

Oak Hill Township operates a motor pool with 20 vehicles. The motor pool furnishes gasoline, oil, and other supplies for the cars and hires one mechanic who does routine maintenance and minor repairs. Major repairs are done at a nearby commercial garage. A supervisor manages the operations Each year, the supervisor prepares a master budget for the motor pool. Depreciation on the automobiles is recorded in the budget to determine the costs per mile The following schedule presents the master budget for the year and for the month of July OAK HILL TOWNSHIP Motor Pool Budget Report for July One-Month Master Budget Over- or (Under-) Budget Annual Master Budget $ 81,000 7,200 6,000 12,000 66,000 55,200 $227,400 900,000 0.2527 20 July Actual S 6,750 600 500 1,000 5,500 4,600 $18,950 75,000 $0.2527 20 S 8,607 769 160 1,050 5,500 4,830 $20,916 95,500 $0.2190 21 Gasoline Oil, minor repairs, parts, and supplies Outside repairs Insurance Salaries and benefits Depreciation $1,857 169 (340) 50 230 $ 1,966 Total cost Total miles Cost per mile Number of automobiles

Explanation / Answer

a) Gasoline 6750/75000*95,500 8595 Flexible buget 8595 over budget 12 (8607-8595) b) oil,minor repairs ,parts and supplies 600/75000*95,500 764 Flexible buget 5 (769-74) over budget over budget c) Salaries and benefits Flexible budget 5,500 no change 0

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