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 Actual Cost in March

Utilities $ 16,200 plus $0.20 per machine-hour $ 21,400

Maintenance $ 38,600 plus $1.60 per machine-hour $ 59,600

Supplies $ 0.50 per machine-hour $ 8,300

Indirect labor $ 94,100 plus $1.50 per machine-hour $ 20,500

Depreciation $ 67,800 $ 69,500

During March, the company worked 15,000 machine-hours and produced 9,000 units. The company had originally planned to work 17,000 machine-hours during March.

Required:

1. What is the flexible budget for March.

Machine-hours ---- ?

Utilities ----- ?

Maintenance ------- ?

Supplies ----- ?

Indirect Labor ----- ?

Depreciation ----- ?

Total ---------------- ?

2. What is the report showing the spending variances for March.

Utilities ----- ?

Maintenance ------- ?

Supplies ----- ?

Indirect Labor ----- ?

Depreciation ----- ?

Total ---------------- ?