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 10,000 to 20,000 machine-hours per month: Overhead Cost Utilities Lubricants. Machine setup Cost Formula $ 0.70 per machine-hour $ 1.00 per machine-hour plus $8,eee per month $ 8.20 per machine-hour $ 0.60 per machine-hour plus $120,000 per month Indirect labour Depreciation $ 32,000 per month During March, the first month after your preparation of the above data, the Machining Department worked 18,000 machine-hours and produced 9,000 units of product. The actual manufacturing overhead costs for March were as follows: Utilities Lubricants Machine setup Indirect labour Depreciation Total manufacturing overhead cost $ 12,000 24,500 4,800 132,500 32,000 $205,800 Fixed costs had no budget variances. The department had originally been budgeted to work 20,000 machine-hours during March. Fixed costs had no budget variances. The department had originally been budgeted to work 20,000 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.) THE GROSCHI COMPANY Overhead Performance Report-Machining Department For the Month of March Overhead Costs Cost Formula per MH Actual 18,000 MHS Flexible Budget 18,000 MHs Spending Variance Variable: Total variable cost Fixed: Variable: Total variable cost Fixed: Total fixed cost Total overhead cost