tory Bookmarks Window Help Chapter 9 You Have Just Been ired By FAB Corporation, The M Help Save & Exit Subm Check my work Problem 9-20 Activity and Spending Variances [LO9-1, LO9-2, LO9-3) 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 Cost in Cost Formala niiities 16,900 plus s0.15 per machine-hour s 21,250 s 50,600 5 13-700 129, 100 69,600 Raistenance$38,100 plus $1.10 per machine-hour Supplies Indirect Labor $94.200 plus $2.00 per machine-bour 0-70 per machine-hour During March, the company worked 15,000 machine-hours and produced 9,000 units. The company had originally planned to work 17000 machine-hours during March Required: 1 Calculate the activity variances for March 2 Calculate the spending variances for March Complete this question by entering your answers in the tabs below. 5 6 7 8 0