Denger You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The presidentasked you to review the company's costing system and "do what you can to help us get better control of our manufacturing overheadcosts." You find the company has never used a flexible budget, and you suggest preparing such a budget would be an excellent firststep in overhead planning and control.After much effort and analysis, you estimated the following cost formulas and gathered the following actual cost data for March:UtilitiesMaintenanceSuppliesIndirect laborDepreciationCost Formula$20,600 +$0.10 per machine-hour$40,000 +$1.60 per machine-hour$0.30 per machine-hour$130,000 +$0.70 per machine-hour$70,000Actual Costin March$ 24,200$ 78,100$ 8,400$ 149,600$ 71,500During March, the company worked 26,000 machine-hours and produced 15,000 units. The company originally planned to work30,000 machine-hours during March.Required:1. Calculate the activity variances for March.2. Calculate the spending variances for March.

Name: Denger You have just been hired by FAB Corporation, the manufacturer o
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Denger You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The presidentasked you to review the company's costing system and "do what you can to help us get better control of our manufactur