Critiquing a Report; Preparing Spending Variances
Farrar University offers an extensive continuing education program in many citiesthroughout the state. For the convenience of its faculty and administrative staff and tosave costs, the university operates a motor pool. The motor pool operated with 20vehicles until February, when an additional automobile was acquired at the request ofthe university administration. The motor pool furnishes gasoline, oil, and other suppliesfor its automobiles. A mechanic does routine maintenance and minor repairs. Majorrepairs are performed at a nearby commercial garage. Each year, the supervisor of themotor pool prepares an annual budget, which is reviewed by the university andapproved after suitable modifications.
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