What is the spending variance

You havejust been hired by FAB Corporation, the manufacturer ofa 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 $16,300 plus $0.20 per machine 5 22,500 hour Maintenance $38,900 plus $1.40 per machine- $ 63,500 hour Supplies $0.40 per machinehour $ 8,600 Indirect $94,900 plus $2.10 per machine $142,000 labor hour Depreciation $67,600 $ 69,300 [ 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. Calculate the activity variances for March. 2. Calculate the spending variances for March. Complete this question by entering your answers in the tabs below. Requned 1 Requned 2 | Calculate the spending variances for March. (Indicate the effect of each variance by selecting unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive value