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 in March 23,100 Utilities to Maintenance to Cost Formula $16,800 + $0.18 per machine- hour $38,000 + $2.00 per machine hour $0.50 per machine-hour $94,200 + $1.80 per machine- hour $68,300 to Supplies Indirect labor Depreciation 81,800 12,300 140,100 70,000 to to During March, the company worked 23,000 machine-hours and produced 17,000 units. The company had originally planned to work 25,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March