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 equipment depreciation in the flexible budget performance report for the month should be:
A) $1,890 U
B) $90 F
C) $90 U
D) $1,890 F

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 equipment depreciation in the flexible budget performance report for the month should be:
A) $1,890 U 
B) $90 F 
C) $90 U 
D) $1,890 F

Quizplus · Accepted Answer

11ea7761_1780_7945_81a5_0f015195f631_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