10 Check my work 19 Boyne University offers an extensive con

10 Check my work 19 Boyne 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\'s monthly planning budget is based on operating 20 vehicles; however, for the month of March the university purchased one additional vehicle. 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. 10 points The following cost control report shows actual operating costs for March of the current year compared to the planning budget for March. eBook Boyne University Motor Pool Cost Control Report For the Month Ended March 31 Print (Over) March Planning Under Actual Budget Budget 56, 80048,800 References Miles Autos 20 Gasoline oil, minor repairs, parts Outside repairS Insurance Salaries and benefits Vehicle depreciation Total $ 9,750 $8,784 (966) (339) (175) (120) 3,755 755 3,416 580 1,4201,300 8,610 3,800 8,610 3,990 (190) $28,280 26,490 (1,790) The planning budget was based on the following assumptions: a. $0.18 per mile for gasoline. b. $0.07 per mile for oil, minor repairs, and parts. c. $29 per automobile per month for outside repairs. d. $65 per automobile per month for insurance. e. $8,610 per month for salaries and benefits f $190 per automobile per month 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. Mc Graw KPrev 19 of 19li Next

Solution

Boyne university motor pool Spending variance For the month ended March 31 Spending Variances Gasoline $    474 F Oil, minor repairs, parts $    221 F Outside reepairs $    146 U Insurance $       55 U Salaries and benefits $        -   N Vehicle depreciation $        -   N Total $    494 F Boyne university motor pool Spending variance For the month ended March 31 Flexible Budget Actual results Spending Variances Miles (q)         56,800         56,800 Autos                 21                 21 Gasoline ($0.18 X 56,800 miles) $     10,224 $       9,750 $    474 F Oil, minor repairs, parts ($0.07 X 56,800 miles) $       3,976 $       3,755 $    221 F Outside reepairs ($29 X 21 autos) $           609 $           755 $    146 U Insurance ($65 X 21 autos) $       1,365 $       1,420 $      55 U Salaries and benefits ($8,610) $       8,610 $       8,610 $       -   N Vehicle depreciation ($190 X 21 autos) $       3,990 $       3,990 $       -   N Total $     28,774 $     28,280 $    494 F U= Unfavourable F= Favourable N= No effect