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 companys 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:

Cost Formula Actual Cost in March

Utilities $16,400 plus $0.12 per machine-hour $ 20,600

Maintenance $38,300 plus $1.10 per machine-hour $ 54,100

Supplies $0.80 per machine-hour $ 15,800

Indirect labor $94,500 plus $1.80 per machine-hour $ 131,400

Depreciation $68,300 $ 70,000

During March, the company worked 18,000 machine-hours and produced 12,000 units. The company had originally planned to work 20,000 machine-hours during 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 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 Cost Formula $16,400 plus $0.12 per machine-hour $ 20,600 Maintenance $38,300 plus $1.10 per machine-hour $ 54,100 15,800 Utilities Supplies Indirect labor $94,500 plus $1.80 per machine-hour $ Depreciation $68,300 $0.80 per machine-hour 131,400 $ 70,000 During March, the company worked 18,000 machine-hours and produced 12,000 units. The company had originally planned to work 20,000 machine-hours during March. Required 1. Complete the report showing the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.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