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: Overhead Cost Cost Formula Utilities $1.04 per machine-hour Lubricants $1.40 per machine-hour plus $9,400 per month Machine setup $0.49 per machine-hour Indirect labour $0.77 per machine-hour plus $182,000 per month Depreciation $51,500 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: 27,374 Utilities Lubricants 46, 120 15,444 Machine setup 205,242 Indirect labour 51,500 Depreciation Total manufacturing overhead cost 345,680 Fixed costs had no budget variances. The department had originally been budgeted to work 30,600 machine-hours during March