you have been hired by FAP corporation the manufacturer of a revolutionary new garbage door opening device the president has asked that you review the company is costing system and do what you can to help us get better control of our manufacturing overhead cost you find that the company has never use 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 determine the following cost formulas and gathered the following actual cost data for March

during March the company worth 20,000 machine ours and produced 14,000 units the company had originally planned to work 22,000 machine hours during March

calculate the activity variance for March

calculate the spending variance for March

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 costsYou 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: res Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,600 + $0.14 per machine-hour $38,200 + $1.60 per machine-hour $0.40 per machine-hour $94,200 + $1.40 per machine-hour $67,800 Actual Cost in March $ 21, 480 $ 67,200 $ 8,600 $125,900 $ 69,500 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. Required 1 Required 2 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. Required 1 Required 2 Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.) FAB Corporation Activity Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total Required Required 2 > 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. Required 1 Required 2 11 Calculate the spending variances for March. (Indicate the effect of each variance by selecting unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values FAB Corporation Spending Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total