You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president asked you to review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find the company has never used a flexible budget, and you suggest preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you estimated the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,800 + $0.17 per machine-hour $38,400 + $1.40 per machine-hour $0.30 per machine-hour $94,200 + $1.70 per machine-hour $68,200 Actual Cost in March $ 21,320 $ 54,600 $ 4,600 $ 122,300 $ 69,900 During March, the company worked 14,000 machine-hours and produced 8,000 units. The company 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.