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ou have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has sked that you review the company's costing system and "do what you can to help us get better control of our manufacturing verhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be n excellent first step in overhead planning and control. fter much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: uring March, the company worked 15,000 machine-hours and produced 9,000 units. The company had originally planned to work 7,000 machine-hours during March. equired: Calculate the activity variances for March. . Calculate the spending variances for March. \begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ FAB Corporation } \\ \hline \multicolumn{1}{|c|}{ Activity Variances } \\ \hline For the Month Ended March 31 \\ \hline Utilities \\ \hline Maintenance \\ \hline Supplies & \\ \hline Indirect labor \\ \hline Depreciation \\ \hline Total & \\ \hline \hline \end{tabular} FAB Corporation Spending Variances For the Month Ended March 31 \begin{tabular}{|l|l|} \hline Utilities & \\ \hline Maintenance & \\ \hline Supplies & \\ \hline Indirect labor \\ \hline Depreciation & \\ \hline Total \\ \hline \end{tabular} 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 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: During March, the company worked 15,000 machine-hours and produced 9,000 units. The company had originally planned to work 17,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March