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You have just beenhired by FAB Corporation, the manufacturer of a revolutionary newgarage door opening device. The president has asked that you reviewthe company’s costing system and “do what you can to help us getbetter control of our manufacturing overhead costs.” You find thatthe company has never used a flexible budget, and you suggest thatpreparing such a budget would be an excellent first step inoverhead planning and control.After much effort andanalysis, you determined the following cost formulas and gatheredthe following actual cost data for March:CostFormulaActual Cost in MarchUtilities$16,400 + $0.19per machine-hour$22,760Maintenance$38,200 + $1.80per machine-hour$75,200Supplies$0.60 permachine-hour$14,200Indirectlabor$94,800 + $1.50per machine-hour$131,700Depreciation$68,200$69,900During March, thecompany worked 22,000 machine-hours and produced 16,000 units. Thecompany had originally planned to work 24,000 machine-hours duringMarch.2. Calculate thespending variances for March.