You have just been hired by OpenDoor 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 April:

	Cost Formula	Actual Cost in April
Utilities	$17,900 plus $0.18 per machine-hour	$	23,860
Maintenance	$39,800 plus $1.50 per machine-hour	$	66,050
Supplies	$0.50 per machine-hour	$	10,250
Indirect labor	$95,400 plus $1.75 per machine-hour	$	135,100
Depreciation	$68,700	$	71,500

During April, the company worked 20,000 machine-hours and produced 15,000 units. The company had originally planned to work 22,000 machine-hours during April.

Required:

1.	Prepare a flexible budget for April.

2.	Prepare a report showing the spending variances for April. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)