Problem 9-19 Activity and Spending Variances (LO9-1, 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 formules and gathered the following actual cost data for March Actual Cost in March Utilities Cost Formula $16.500 plus $0.20 per machine-hour $38.600 plus $190 per $ 22700 $ 74200 Maintenance mechine-hour $ 6.400 128,600 Supplies $0.30 per machine-hour Indirect $94.700 plus $150 per labor machine-hour Depreciation $67.900 $69.600 During March, the company worked 20.000 machine-hours and produced 14,000 units. The company had originally planned to work 22.000 machine-hours during March Required: 1. Complete the report showing the activity variances for March (Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) FAB Corporation Activity Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total 2 Complete the report showing the spending variances for March (Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (Le., zero variance). Input all amounts as positive values.) FAB Corporation Spending Variances For the Month Ended March 31 Untities Maintenance Supplies Indirect labor Depreciation Total