Moncrief Corporation bases its budgets on machine-hours. The company's static planning budget for July appears below:
Actual results for the month were:

-The spending variance for power costs in the flexible budget performance report for the month should be:
A) $2,060 F
B) $2,060 U
C) $300 F
D) $300 U

Question

Moncrief Corporation bases its budgets on machine-hours. The company's static planning budget for July appears below:
  Actual results for the month were:
 
-The spending variance for power costs in the flexible budget performance report for the month should be:
A) $2,060 F 
B) $2,060 U 
C) $300 F 
D) $300 U

Quizplus · Accepted Answer

11ea7761_1780_5234_81a5_51d2a76a4b81_TB2580_00 Because the actual expense is greater than the flexible budget, the variance is unfavorable (U).

Moncrief Corporation Bases Its Budgets on Machine-Hours