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:
During March, the company worked 23,000 machine-hours and
produced 17,000 units. The company had originally planned to work
25,000 machine-hours during March.
Required:
1. Prepare a flexible budget for March.
2. Prepare a report showing the spending variances for
March.