You have Just been hired by FAB Corporation, the manufacturer of a revolutlonary new garage door opening device. The president has

asked that you revlew 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 preparling 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:

Durling March, the company worked $21,000$ machine$-$hours and produced $15,000$ units. The company had originally planned to work

$23,000$ machine$-$hours during March.

Required:

Prepare a flexible budget for March.

Prepare a report showing the spending varlances for March.

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

Prepare a flexible budget for March. $($Input all amounts as positive values.$)$