You have just been hired by FAB Corporation, the manufacturer of a revolutionary new parage 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 overheat planning and control After much effort and soulys, you determined the following cont formules and pathered the following setul cout data for March Actual Cost Cost Formula In March Uries $20.600 - $0.10 per machine-hour $24.200 Maintenance $40,000 $1.60 per nadine hour $78,100 Supplies $0:30 per machine hour $8.400 Indirect labor $130,000 $0.70 per machine hour $149,000 Depreciation 370.000 571.000 During Match the company worked 26.000 machis hours and produced 15.00 units. The company at originally planned to work 30.000 machine hours during March Required: 1.Calculate activity inces for Machine Refer to Exhibit 06) Explain what the varices man 2. Calculate the pending variances for March. HintRefer to Exhibit 92>Explain what these variances man