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 Cost Formula Utilities 0.70 per machine-hour Lubricants 1.09 per machine-hour plus $8,ees per month Machine setup 0. 20 per machine-hour Indirect labour 0.60 per machine-hour plus $120, 980 per month Depreciation $ 32, 008 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 12, 096 Lubricants 24, 509 Machine setup 4, 809 Indirect labour 132, 508 Depreciation 32,090 Total manufacturing overhead cost $ 205, 890 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 varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (L.e., zero varlance). 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 Actual 18,000 Flexible per MH MHs Budget Spending Variance 18,000 MHs Variable: Total variable cost Fixed: Total fixed cost Total overhead cost