You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president asked you to review the companys costing system and do what you can to help us get better control of our manufacturing overhead costs. You find the company has never used a flexible budget, and you suggest preparing such a budget would be an excellent first step in overhead planning and control.

After much effort and analysis, you estimated the following cost formulas and gathered the following actual cost data for March:

	Cost Formula	Actual Cost in March
Utilities	$17,000 + $0.20 per machine-hour	$ 23,600
Maintenance	$38,800 + $1.20 per machine-hour	$ 61,400
Supplies	$0.80 per machine-hour	$ 19,000
Indirect labor	$94,100 + $1.50 per machine-hour	$ 131,000
Depreciation	$68,200	$ 69,900

During March, the company worked 22,000 machine-hours and produced 16,000 units. The company originally planned to work 24,000 machine-hours during March.

Required:

1. Calculate the activity variances for March.
2. Calculate the spending variances for March.