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 $16,000 plus $0.16 per machine-hour $ 21,320

Maintenance $38,200 plus $1.40 per machine-hour $ 62,800

Supplies $0.80 per machine-hour $17,400

Indirect labor $94,200 plus $1.10 per machine-hour $119,300

Depreciation $67,700 $ 69,400

During March, the company worked 20,000 machine-hours and produced 14,000 units. The company had originally planned to work 22,000 machine-hours during March

. Required:

Please help with below.

2. Calculate the spending variances for March.