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 company's 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:

During March, the company worked $14,000$ machine$-$hours and produced $8,000$ units. The

company originally planned to work $16,000$ machine$-$hours during March.

Required:

Calculate the activity variances for March.

Calculate the spending variances for March.

Complete this question by entering your answers in the tabs below.

Required $1$

Calculate the activity variances for March.

Note: Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and $"$I

zero variance$).$ Input all amounts as positive values.