You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device

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 $16,600 plus $0.12 per machine-hour $39,000 plus $1.70 per machine-hour $0.80 per machine-hour $94,300 plus $1.99 per machine-hour $67,9ee Actual Cost in March $ 20,440 $ 61,700 $ 13,400 $127,500 $ 69,600 During March, the company worked 15,000 machine-hours and produced 9,000 units. The company had originally planned to work 17,000 machine-hours during March. Required: 1. Prepare a flexible budget for March. 2. Prepare a report showing the spending variances for March.
Required 1 Required 2 Prepare a flexible budget for March. (Input FAB Corporation Flexible Budget For the Month Ended March 31 Machine-hours Utilities Maintenance Supplies Indirect labor Depreciation Total
Required 1 Required 2 Prepare a report showing the spending variances favorable, "U" for unfavorable, and "None" for no FAB Corporation Spending Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total