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	$16,900 + $0.14 per machine-hour	$	21,360
Maintenance	$38,500 + $1.90 per machine-hour	$	68,400
Supplies	$0.70 per machine-hour	$	13,100
Indirect labor	$94,800 + $1.30 per machine-hour	$	120,400
Depreciation	$68,100	$	69,800

During March, the company worked 17,000 machine-hours and produced 11,000 units. The company had originally planned to work 19,000 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.Calculate the spending 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
Spending Variances
For the Month Ended March 31
Utilities	$(2,080)	U
Maintenance	2,400	F
Supplies	(1,200)	U
Indirect labor	(3,500)	U
Depreciation	(1,700)	U
Total	$(6,080)	U

I got these numbers wrong except for supplies when I checked it.