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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

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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 Cost Formula March Utilities $16,400 + $0.16 per machine-hour $ 22,040 Maintenance $39,000 + $1.90 per machine-hour $ 78,400 Supplies $0.30 per machine-hour $ 7,000 Indirect labor $94,900 + $1.60 per machine-hour $134,200 Depreciation $67,600 $ 69,300 During March, the company worked 22,000 machine-hours and produced 16,000 units. The company had originally planned to work 24,000 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 Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance), Input all amounts as positive values.) FAB Corporation Activity Variances For the Month Endod March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total Required 1 Required 2 Calculate the spending variances for March. (Indicate unfavorable, and "None" for no effect (i.e., zero varia FAB Corporation Spending Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total

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