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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 Alter much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost Cost Formula in March Utilities $16,100+ 0.13 per machine hour $ 20,500 Maintenance $3,000 $1,30 per machine hour $ 58,600 Supplies $0.50 per machine-hour $ 9,000 Indirect labor $94,500 $1,20 per machine hour $ 119,400 Depreciation 566,100 $ 60,000 During March the company worked 18.000 machine hours and produced 12.000 units. The company had originally planned to work 20,000 machine hours during March Required: 1 Calculate the activity variances for March 2. Calculate the spending variances for March Complete this question by entering your answers in the tabs below. Complete this question by entering your answers i Required 1 Required 2 Calculate the activity variances for March. (Indicate the e unfavorable, and "None" for no effect (i.e., zero variance) FAB Corporation Activity Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total Require Complete this question by entering your answers in Required 1 Required 2 Calculate the spending variances for March. (Indicate the e unfavorable, and "None" for no effect (i.e., zero variance). FAB Corporation Spending Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total

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