You have 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 control.

May you also show your work ! it would help me understand it better, thank you :)

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. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March Actual Cost in March $ 24,20e 78,100 Cost Formula Utilities Maintenance Supplies Indirect labor Depreciation $20,608 plus $e.10 per machine-hour $40,000 plus $1.60 per machine-hour $0.30 per machine-hour $130,000 plus $e.70 per machine-hour $70,000 $ 8,40e 149,60e 71,58e During March, the company worked 26,000 machine-hours and produced 15,000 units. The company had originally planned to work 30,000 machine-hours during March Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March