Groschl Company has had great difficulty in controlling manufacturing overhead costs. At a recent convention, the president heard about a control device for overhead costs known as a flexible budget , and he has hired you to implement this budgeting program in Groschl Company. After some effort, you have developed the following cost formulas for the company's Machining Department. These costs are based on a normal operating range of 15,300 to 30,600 machine-hours per month: During March, the first month after your preparation of the above data, the Machining Department worked 27,600 machine-hours and produced 13,800 units of product. The actual manufacturing overhead costs for March were as follows:

Fixed costs had no budget variances. The department had originally been budgeted to work 30.600 machine-hours during March.

Required:

1. Prepare an overhead performance report for the Machining Department for the month of March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round "Cost Formula per MH" answers to 2 decimal places.)

Overhead Cost Utilities Lubricants Machine setup Indirect labour Depreciation Cost Formula $1.04 per machine-hour $1.40 per machine-hour plus $9,400 per month $0.49 per machine-hour $0.77 per machine-hour plus $182,000 per month $51,500 per month Utilities Lubricants Machine setup Indirect labour Depreciation Total manufacturing overhead cost $ 27,374 46, 120 15,444 205,242 51,500 $ 345,680