Reference no: EM133906389

Problem

You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president asked you to review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find the company has never used a flexible budget, and you suggest preparing such a budget would be an excellent first step 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: Cost Formula Actual Cost in March Utilities $16,700 + $0.12 per machine-hour $ 21,020 Maintenance $38,200 + $2.10 per machine-hour $ 76,100 Supplies $0.40 per machine-hour $ 8,200 Indirect labor $94,000 + $1.50 per machine-hour $ 126,400 Depreciation $68,400 $ 70,100 During March, the company worked 19,000 machine-hours and produced 13,000 units. The company originally planned to work 21,000 machine-hours during March. Get the instant assignment help. Calculate the activity variances for March. Calculate the spending variances for March.