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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

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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 Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,100 - $0.14 per machine-hour $38,500 - $1.70 per machine-hour se. 60 per machine-hour $94,688 + $2.10 per machine-hour $67,789 Actual Cost in March $ 20,980 $ 60,700 $ 13,000 5141,700 $ 69,480 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: 1. Prepare a flexible budget for March 2. Prepare a report showing the spending variances for March 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: 1. Prepare a flexible budget for March 2. Prepare a report showing the spending vartances for March Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a flexible budget for March. (Input all amounts as positive values.) FAB Corporation Flexible Budget For the Month Ended March 31 Machine-hours Utilities Maintenance Supplies Indirect labor Depreciation Total References Required 1 Required Prepare a report showing the spending variances for March. (Indicate the effect of each varian favorable. "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts FAB Corporation Spending Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total

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