Question

Utilities $16,400 $0.19 per machine-hour $ 22,190 maintenance $38,400 $1.90 per machine-hour $ 72,100 supplies $0.30 per machine-hour $ 6,100 indirect labor $94,300 $1.70 per machine-hour $ 130,900 depreciation $67,600 $ 69,300 during march, the company worked 19,000 machine-hours and produced 13,000 units.

the company had originally planned to work 21,000 machine-hours during march.
required:
1. calculate the activity variances for march.

Answer 1

The response cannot calculate activity variances due to the lack of standard costs and other relevant data necessary for the computation. More information is needed to perform an accurate calculation of activity variances, which involve comparing standard costs to actual costs.

Step-by-step explanation:

The question relates to calculating the activity variances for a company based on its operational costs and production data for the month of March. However, there is insufficient data available in the question to accurately calculate these variances. Activity variances typically involve comparing the budgeted or standard costs to the actual costs incurred during a given period.

To calculate activity variances, we need to know the standard cost per machine-hour for the different expenses and compare them against the actual costs. In this instance, the actual number of machine-hours worked are 19,000, and we need to compare this against the standard machine-hours that should have been worked for the production of 13,000 units. Once we have the standard costs, we can calculate the variances by taking the difference between the actual cost and the standard cost, and multiplying that by the total machine-hours.