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 companys 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	Actual Cost in March
Utilities	$16,700 + $0.16 per machine-hour	$	21,860
Maintenance	$38,100 + $1.60 per machine-hour	$	65,500
Supplies	$0.60 per machine-hour	$	12,400
Indirect labor	$94,300 + $1.10 per machine-hour	$	118,300
Depreciation	$68,200	$	69,900

During March, the company worked 19,000 machine-hours and produced 13,000 units. The company had originally planned to work 21,000 machine-hours during March.

m 3 Required 1 Required 2 25 points Calculate the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) FAB Corporation Spending Variances eBook For the Month Ended March 31 Hint Utilities Print Maintenance References Supplies Indirect labor Depreciation Total