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. utilities $16,400 plus $0.15 per machine-hour $20,600

Problem 9-20 Activity and Spending Variances [LO9-1, LO9-2, LO9-3] 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: Cost Formula Utilities $16, 100 plus 0.15 per machine-hour Maintenance 38, 400 plus $1.50 per machine-hour Supplies $0.60 per machine-hour Indirect labor $94,000 plus $1.30 per machine-hour Depreciation $67,900 Actual Coat in March $ 20,600 $ 56.200 $ 9.400 $115,700 $ 69,600 During March, the company worked 14,000 machine-hours and produced 8,000 units. The company had originally planned to work 16,000 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 Required 1 Required 2 Calculate the activity variances for March. (Indicate the unfavorable, and "None" for no effect (i.e., zero variance) FAB Corporation Activity Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total Complete this question by entering your answers in the tabs be Required 1 Required 2 Calculate the spending variances for March. (Indicate the effect of eac unfavorable, and "None" for no effect (i.e., zero variance). Input all amo FAB Corporation Spending Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total