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: 1. Prepare the Planning Budget 2. Prepare the Flexible Budget Utilities $16,500 + $0.14 per machine hour Maintenance $38,100 + $1.40 per machine hour Supplies $0.40 per machine hour Indirect Labor $94,200 + $2.00 per machine hour Depreciation $68,100 March Actual Results Spending Variances March Flexible Budget Activity Variances March Planning Budget Total Variances Units 10,000 MHS 16,000 16,000 18,000 Utilities 20,820 Maintenance 57,100 7,000 Supplies Indirect Labor 131,100 Depreciation 69,800 Total 285,820