Help Save You have just been hired by FAB Corporation, the manufacturer of a revolution ew garage door opening device. The president has 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 Actul Cost in Cost Formula March Utilities $16,000 + $0.19 per nachine-hour $ 20,840 Maintenance $38,200 + $1.20 per machine-hour $ 51,200 Supplies 30.50 per machine-hour $ 7,800 Indirect labor $94,500 $1.00 per machine-hour 6124,200 Depreciation $68,400 $ 70,100 During March, the company worked 14,000 machine-hours and produced 8,000 units. The company had originally planned to work 16.000 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 for favorable. "Ufor