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 17,700 to 35,400 machine-hours per month: Overhead Cost Utilities Lubricants Machine setup Indirect labour Depreciation Cost Formula $0.95 per machine-hour $1.49 per machine-hour plus $8,000 per month $0.62 per machine-hour $0.68 per machine-hour plus $182,000 per month $44,500 per month During March, the first month after your preparation of the above data, the Machining Department worked 32,400 machine-hours and produced 16.200 units of product. The During March, the first month after your preparation of the above data, the Machining Department worked 32,400 machine hours and produced 16,200 units of product. The actual manufacturing overhead costs for March were as follows: Utilities Lubricants Machine setup Indirect labour Depreciation $29,420 54,166 21,728 206,242 44,500 Total manufacturing overhead cost (356,056 Fixed costs had no budget variances. The department had originally been budgeted to work 35,400 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 32,400 MHS Flexible Budget 32,400 MHs Spending Variance $ $ 29,420 Variable Utilities Lubricants Machine setup Indirect labour 0.95 1.49 .62 .68 30,780 48,276 20,088 22,032 21,728 0 0 $ 3.7451 148 1 21 176 U Total variable cost Fixed Indirect labour Lubricants Depreciation So None 0 None So None 0 None Total fixed cost Total overhead cost os 121,176 $ 51 148 $ U