Problem 9-20 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. ts After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost in March $ 20,920 70, 200 12,406e $117,506e 69, 300e Cost Formula Utilities Maintenance Supplies Indirect labor $95,ee0 plus $1.20 per machine-hour Depreciation$67,600 $16,600 plus $e.14 per machine-hour $38,600 plus $2.10 per machine-hour $0.70 per machine-hour During March, the company worked 16,000 machine-hours and produced 10,000 units. The company had originally planned to work 18,000 machine-hours during March Required 1. Calculate the activity variances for March. 2. Calculate the spending variances for March. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below