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During March, the first month after your preparation of the above data, the Machining Department worked 27,800 machine-hours and produced 13,900 units of product. The actual manufacturing overhead costs for March were as follows: Utilities Lubricants Machine setup Indirect labour $ 20,214 40,880 19,772 161.322 Depreciation 49,000 Total manufacturing overhead cost $291,188 Fixed costs had no budget variances. The department had originally been budgeted to work 30,800 machine-hours during March. Groschl Company has had great difficulty in controlling manufacturing overhead costs. At a recent convention, the president heard about a control device for overhead costs known as a flexible budget, and he has hired you to implement this budgeting program in Groschl Company. After some effort, you have developed the following cost formulas for the company's Machining Department. These costs are based on a normal operating range of 15,400 to 30,800 machine-hours per month: Overhead Cost Cost Formula Utilities $0.78 per machine-hour Lubricants $1.20 per machine-hour plus $9,050 per month Machine setup $0.64 per machine-hour Indirect labour $0.94 per machine-hour plus $133,000 per month Depreciation $49,000 per month 1. Prepare an overhead performance report for the Machining Department for the month of March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round "Cost Formula per MH" answers to 2 decimal places.) THE GROSCHI COMPANY Overhead Performance Report-Machining Department For the Month of March Overhead Costs Cost Formula per MH Actual 27,800 MHS Flexible Budget 27,800 MHs Spending Variance Variable: $ 0.00 0 0 Total variable cost Fixed: 0 0 Total fixed cost Total overhead cost $ $ 0 $ 0