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Problem 9-19 Activity and Spending Variances [LO9-1, LO9-2, LO9-3] You have just been hired by...

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Problem 9-19 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: Actual Cost in March $ 22,000 $ 60,000 $11,000 $121,100 $ 69,900 Cost Formula Utilities Maintenance $17,000 plus $0.20 per machine-hour $39,000 plus $1.70 per machine-hour $0.70 per machine-hour $94,600 plus $1.60 per machine-hour Indirect labor Depreciation $68,200 During March, the company worked 14,000 machine-hours and produced 8,000 units. The company had originally planned to work 16,000 machine-hours during March

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