Problem $9-18($Algo$)$ Actlvlty and Spending Varlances $[$LO$9-1,$ L$09\mathrm{.}2,$ L$09\mathrm{.}3]$

You have Just been hired by FAB Corporation, the manufacturer of a revolutlonary new garage door opening device. The president

asked you to review the company's costing system and $"$do what you can to help us get better control of our manufacturing overhead

costs." You find the company has never used a flexible budget, and you suggest preparing such a budget would be an excellent first

step in overhead planning and control.

After much effort and analysis, you estimated the following cost formulas and gathered the following actual cost data for March:

Durling March, the company worked $15,000$ machine$-$hours and produced $9,000$ units. The company originally planned to work $17,000$

machine$-$hours during March.

Required:

Calculate the actlvity varlances for March.

Calculate the spending varlances for March.

Complete this question by entering your answers in the tabs below.

Required $2$

Calculate the spending variances for March.

Note: Indicate the effect of each variance by selecting $"F"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$

zero variance$).$ Input all amounts as positive values.