Problem 9-18 (Algo) Activity and Spending Variances (L09-1, LO9-2, LO9-3) 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: Actual Cost in Cost Formula March Utilities $16.700 + 50.18 per nachine-hour $ 22,460 Maintenance $38.800 + $1.90 per machine-hour $ 74,400 Supplies 50.80 per machine-hour $ 17,400 Indirect labor $94,100 - $1.20 per machine-hour $121,400 Depreciation 568,000 $ 69,700 ook Hint During March, the company worked 20,000 machine hours and produced 14,000 units. The company hod originally planned to work 22.000 machine-hours during March Required: 1. Calculnte 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," for unfavorable, and "None for no effect (1. zero variance). Input all amounts as positive values.) FAB Corporation - 14 During March, the company worked 20,000 machine-hours and pro 22,000 machine-hours during March. 1.62 points 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 bek eBook Required 1 Required 2 Hint Calculate the activity variances for March. (Indicate the effect of each varia unfavorable, and "None" for no effect (l.e., zero variance). Input all amount FAB Corporation Activity Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total Required 2 Mc GEN