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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: Cost Formula Utilities $16,400 + $0.17 per machine-hour Maintenance $38,600 + $1.60 per machine-hour Supplies $0.80 per machine-hour Indirect labor $94,700 + $2.00 per machine-bour Depreciation $67,800 Actual Cont in March $ 21,260 $ 61,200 $ 14,200 $131,600 $ 69,500 During March, the company worked 16,000 machine-hours and produced 10,000 units. The company had originally planned to work 18,000 machine-hours during March Required: 1. Prepare a flexible budget for March 2. Prepare a report showing the spending variances for March Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a flexible budget for March (Input all amounts a positive values.) FAB Corporation Flexible Budget For the Month Ended March 31 Machine-hours Ut Maintenance Supplies Indirect labor Depreciation 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 Utilities $16,400 + $0.17 per machine-hour Maintenance $38,600 $1.60 per machine-hour Supplies $0.80 per machine-hour Indirect labor $94,700 - $2.00 per nachine-hour Depreciation $67,800 Actual Cost in March $ 21,260 $ 61,200 $ 14,200 $131,600 $ 69,500 During March, the company worked 16,000 machine-hours and produced 10,000 units. The company had originally planned to work 18,000 machine hours during March Required: 1. Prepare a flexible budget for March 2. Prepare a report showing the spending variances for March Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a report showing the spending variances for March (Indicate the effect of each varlance by selecting "r" for favorable, "U" for unfavorable, and "None for no effect (le, zero variance), Input all amounts as positive values.) FAB Corporation Spending Variances For the Month Ended March 31 Us Maintenance Supplies Indirect labor Depreciation Total

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