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:

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:

Prepare a flexible budget for March.

Prepare a report showing the spending variances for March.

Complete this question by entering your answers in the tabs below.

Prepare a report showing the spending variances for March. $($Indicate the effect of each va

favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance$).$ Input all amc