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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 Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,100 $0.20 per machine-hour $38,400 - $1.88 per machine hour $0.50 per machine-hour $94,600 - $1.60 per nachine-hour $67,900 Actual Cost in March $ 22,980 $ 77,280 $ 12,300 $135,500 $ 69,600 ces During March, the company worked 23,000 machine hours and produced 17000 units. The company had originally planned to work 25,000 machine hours during March Required: 1. Calculate the activity variances for March 2. Calculate the spending variances for March answers in the tabs below. Required 1 Required 2 Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) FAB Corporation Activity Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total Recurely Required 2 > Varances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for Sunfavorable, and "None" for no effect (ie, zero variance), Input all amounts as positive values. FAB Corporation Spending Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total

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