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10 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 March s 20,310 $52,300 $ 4,900 $122,900 69,300 Cost Formula utiiities Maintenance Supplies Indirect labor $94,800 plus $1.60 per machine-hour Depreciation $67,600 $16,300 plus $0.13 per machine-hour $38,100 plus $1.20 per machine-hour s0.30 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.