### Cost Analysis and Variance Calculation for Manufacturing OverheadYou have just been hired by FAB Corporation, a manufacturer of an innovative garage door opening device. To gain better control over manufacturing overhead costs, you need to assist in preparing a flexible budget. Precise control and analysis of costs are crucial first steps in overhead planning.#### Cost Formula and Actual Cost Data for March**Cost Components:**1. **Utilities:** - **Formula:** $16,000 + $0.19 per machine-hour - **Actual Cost:** $21,9802. **Maintenance:** - **Formula:** $38,500 + $1.30 per machine-hour - **Actual Cost:** $60,9003. **Supplies:** - **Formula:** $0.90 per machine-hour - **Actual Cost:** $19,0004. **Indirect Labor:** - **Formula:** $94,800 + $1.70 per machine-hour - **Actual Cost:** $133,1005. **Depreciation:** - **Formula:** $67,800 - **Actual Cost:** $69,500#### Production and Machine Hours- The company worked **20,000 machine-hours** and produced **14,000 units** during March.- The initial plan was to work **22,000 machine-hours**.#### Tasks Required1. **Calculate the activity variances for March.**2. **Calculate the spending variances for March.**#### Instructions- **Activity Variance:** Consider the deviation between planned and actual machine-hours.- **Spending Variance:** Focus on the cost differences in the actual budget.Complete these tasks by calculating differences and labeling each variance as "F" for favorable, "U" for unfavorable, or "None" for no effect, ensuring accurate financial assessment and strategic adjustments.**Activity Variances Table:** | Cost Component | Variance ||----------------|----------|| Utilities | || Maintenance | || Supplies | || Indirect Labor | || Depreciation | || **Total** | |Strategic insights from this analysis will enhance overhead control, improve efficiency, and support FAB Corporation’s financial success. **Exercise: Variance Calculation****Objective:**1. Calculate the activity variances for March.2. Calculate the spending variances for March.**Instructions:**Complete this question by entering your answers in the tabs below.**Spending Variances for March:**- **Note:** Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.**FAB Corporation****Spending Variances**For the Month Ended March 31| Category | Variance ||------------------|------------------|| Utilities | || Maintenance | || Supplies | || Indirect labor | || Depreciation | || **Total** | |Use the information provided to complete the variance analysis.

Name: ### Cost Analysis and Variance Calculation for Manufacturing Overhead
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: ### Cost Analysis and Variance Calculation for Manufacturing OverheadYou have just been hired by FAB Corporation, a manufacturer of an innovative garage door opening device. To gain better control over manufacturing overhead costs, you need to assis