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: Actual Cost Cost Formula in March Utilities $16,400 + $0.15 per nachine-hour $ 20,900 $38,600 - $1.40 per machine-hour $ 57,600 Supplies $0.50 per machine-hour $ 8,800 $94,700 - $1.20 per machine-hour $ 117,200 Depreciation 568,500 $ 70,200 During March, the company worked 16,000 machine-hours and produced 10,000 units. The company had originally planned to work 18.000 machine-hours during March Required: 1. Calculate the activity variances for March 2 Calculate the spending variances for March Maintenance Indirect labor Required 1 Required 2 Calculate the activity variances for March. (Indicate the effect unfavorable, and "None" for no effect (i.e., zero variance). In FAB Corporation Activity Variances For the Month Ended March 31 Utilities U Maintenance Supplies U Indirect labor U Depreciation None Total Required 1 Required 2 Calculate the spending variances for March. (Indicate the e unfavorable, and "None" for no effect (i.e., zero variance). lo FAB Corporation Spending Variances For the Month Ended March 31 Utilities F Maintenance F F Supplies Indirect labor C s Depreciation Total