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You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage...

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Accounting

You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage
door opening device. The president asked you to review the company's costing system and
"do what you can to help us get better control of our manufacturing overhead costs." You find
the company has never used a flexible budget, and you suggest preparing such a budget
would be an excellent first step in overhead planning and control.
After much effort and analysis, you estimated the following cost formulas and gathered the
following actual cost data for March:
During March, the company worked 14,000 machine-hours and produced 8,000 units. The
company originally planned to work 16,000 machine-hours during March.
Required:
Calculate the activity variances for March.
Calculate the spending variances for March.
Complete this question by entering your answers in the tabs below.
Required 1
Calculate the activity variances for March.
Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "I
zero variance). Input all amounts as positive values.
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