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 $ 21,700 $ 60,300 $ 7,800 $ 125,600 $ 69,300 Utilities Maintenance Supplies Indirect labor Depreciation During March, the company worked 18,000 machine-hours and produced 12,000 units. The company had originally planned to work 20,000 machine-hours during March. Cost Formula $16,100+ $0.19 per machine-hour $38,500+ $1.40 per machine-hour $0.40 per machine-hour Required: 1. Prepare a flexible budget for March. 2. Prepare a report showing the spending variances for March. Required 1 $94,700+ $1.50 per machine-hour $67,600 Complete this question by entering your answers in the tabs below. Machine-hours Utilities Maintenance Supplies Indire et lobor Prepare a flexible budget for March. (Input all amounts as positive values.) FAB Corporation Flexible Budget For the Month Ended March 31 Required 2 18,000

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for …

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on t…