You have been hired by FAB Corporation, a manufacturer of a new garage door opening device. The President has asked you to review the companys costing system to control manufacturing overhead costs. The company has never used a flexible budget, so you suggest that preparing this kind of budget would be the first step in planning for manufacturing overhead costs.

You have determined the following cost formulas and gathered the following cost date for March:

Cost Formula Actual Cost in March

Utilities $ $ per machinehour $

Maintenance $ $ per machinehour $

Supplies $ per machinehour $

Indirect Labor $ $ per machinehour $

Depreciation $ $

During March, the company worked machine hours and produced units. The company had originally planned to work machinehours during March.

Required

Calculate the activity variances for March.

Calculate the spending variances for March.