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 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 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 t the company has never used a flexible budget, and you suggest that preparing such a budget would be cost data for March: Actual Cost in March Cost Formula $16, 100 plus $0.17 per machine-hour Utilities 21,300 Maintenance machine $38,600 plus $2.00 per s -hour Supplies Indirect labor Depreciation $67,600 $0.60 per machine-hour $94,100 plus $1.60 per machine-hour 11,800 69,300 Durina March the companv worked 18.000 machine-hours and oroduced 12.000 units. The comoanv had oriainallv planned to work 6:31 PM 11/6/2017