Reference no: EM131084934

You have just been hired by SecuriDoor 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 April: Cost Formula Actual Cost in April Utilities $16,500 plus $.18 per machine-hour $ 21,360 Maintenance $38,400 plus $1.40 per machine-hour $ 56,000 Supplies $.80 per machine-hour $ 13,400 Indirect labor $94,900 plus $2.00 per machine-hour $ 129,800 Depreciation $67,700 $ 69,400 During April, the company worked 15,000 machine-hours and produced 9,000 units. The company had originally planned to work 17,000 machine-hours during April. Required: 1. Complete a report showing the activity variances for April. Complete a report showing the spending variances for April.