Answer required 1 and 2

You have just been hired by FAB Corporation, the manufacturer asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Cost Formula Utilities Maintenance $17,000+ $0.19 per machine-hour $38,200+ $1.80 per machine-hour $0.40 per machine-hour Actual Cost in March. $ 22,220 $ 64,400 $7,000 $ 118,900 $ 69,800 Supplies Indirect labor $94,600+ $1.30 per machine-hour. Depreciation $68,100 During March, the company worked 16,000 machine-hours and produced 10,000 units. The company had originally planned to work 18,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.) FAB Corporation Activity Variances For the Month Ended March 31 $ 20,040 F Utilities Maintenance 67,000 U Supplies 6,400 F Indirect labor 115,400 F Depreciation 69,800 None Total $ 279,640 FAB Corporation Spending Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total