Return to question Problem 9-23 Flexible Budgets and Spending Variances (L0944, LO9-2] 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 Marche Actual Cost in Cost Formula March Utilities $16,400 + $0.19 per machine-hour $ 21,810 Maintenance $38, 100 + $1.20 per machine-hour $ 54,700 Supplies $0.50 per machine-hour $ 9,300 Indirect labor $94.400 + $1.80 per machine-hour $129,500 Depreciation $68,200 $ 69,900 During March, the company worked 17000 machine hours and produced 11,000 units. The company had originally planned to work 19.000 machine hours during March Required: 1. Prepare a flexible budget for March 2. Prepare a report showing the spending variances for March x Answer is complete but not entirely correct. WANY McGraw-Hill Education Campus M Question 3 - Chap 9 Homework -... work Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question ---- During March, the company worked 17,000 machine-hours and produced 11.000 units. The company had originally planned to work 19.000 machine-hours during March Required: 1. Prepare a flexible budget for March 2. Prepare a report showing the spending variances for March Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a flexible budget for March. (Input all amounts as positive values.) FAB Corporation Flexible Budget For the Month Ended March 31 Machine-hours 17,000 S Usities Maintenance Supplies indirect labor Depreciation Toul 19,630 58,500 8,500 125,000 08.200 3000 279.830 Required 2 > 12 During March, the company worked 17.000 machine-hours and produced 11.000 units. The company had originally planned to work 19,000 machine-hours during March Required: 1. Prepare a flexible budget for March 2. Prepare a report showing the spending variances for March. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a report showing the spending variances for March (Indicate the effect of each variance by selecting "F" for favorable, "U" Sunfavorable, and "None for no effect (.e. zero variance), Input all amounts as positive values.) FAB Corporation Spending Variances For the Month Ended March 31 Uuties IS 19,630 X U Maintenance 58,500 F Supplies 8,500 X U Indirect labor 125,000 Depreciation 68,200 KU $ 279,830 X U