Problem $9-18($Static$)$ Activity and Spending Variances $[$LO$9-1,$ LO$9-2,$ LO$9-3]$

You have just been hired by FAB Corporation, the manufacturer of a revolutionary 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 overheac 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:

$\backslash$table$[[,$Cost Formula,$\backslash$table$[[$Actual Cost$],[$in March$]]],[$Utilities$,$$$20,600+$$$0\mathrm{.}10$ per machine$-$hCalculate the activity variances for March.

Note: Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavo zero variance$).$ Input all amounts as positive values.

$\backslash$table$[[$FAB Corporation$],[$Activity Variances$],[$For the Month Ended March $31],[$Utilities$,$Four,$$24,200$