You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The pre

[answerhappygod]

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 Formula Actual Cost
in March Utilities $16,100 + $0.17 per machine-hour $ 21,810
Maintenance $38,200 + $1.80 per machine-hour $ 73,400 Supplies
$0.70 per machine-hour $ 15,900 Indirect labor $94,700 + $1.70 per
machine-hour $ 134,700 Depreciation $67,800 $ 69,500 During March,
the company worked 21,000 machine-hours and produced 15,000 units.
The company had originally planned to work 23,000 machine-hours
during March. Required: 1. Prepare a flexible budget for March. 2.
Prepare a report showing the spending variances for March.