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 $16,000$ machine$-$hours and produced $10,000$

units. The company originally planned to work $18,000$ machine$-$hours during March.

Required:

Calculate the activity variances for March.

Calculate the spending variances for March.