mheducation.com Order 4542944.. M Question 5 - H. My Home O D + Do Homework -. HW Chapter 9 Do Homework -. P Homework and. M McGraw-Hill Co. Untitled do Saved Help Save & Exit Submit 5 Problem 9-23 (Algo) Flexible Budgets and Spending Variances [L09-1, LO9-2] You have just been hired by FAB Corporation, the manufacturer of a revolutionary new 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 10 overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be points an excellent first step in overhead planning and control. Skipped After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost in Cost Formula March Utilities $16, 500 + $0. 16 per machine-hour $ 21, 500 Maintenance $38, 100 + $2.00 per machine-hour $ 71, 900 Book Supplies $0.70 per machine-hour $ 13, 800 Indirect labor $94, 300 + $1.20 per machine-hour $ 119, 200 Depreciation $67, 800 $ 69, 500 References During March, the company worked 18,000 machine-hours and produced 12,000 units. The company had originally planned to work 20,000 machine-hours during March. Required: 1. Prepare a flexible budget for March. 2. Prepare a report showing the spending variances for March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a flexible budget for March. (Input all amounts as positive values.) FAB Corporation Flexible Budget For the Month Ended March 31 Next >