Ingrum Framing's cost formula for its supplies cost is $1,120 per month plus $11 per frame.For the month of June,the company planned for activity of 611 frames,but the actual level of activity was 607 frames.The actual supplies cost for the month was $8,150.The spending variance for supplies cost in June would be closest to:
A)$353 F
B)$309 U
C)$353 U
D)$309 F

Question

Quizplus · Accepted Answer

First, we need to calculate the expected cost for supplies based on the planned level of activity:

Expected cost = $1,120 + ($11/frame x 611 frames) = $7,751

Next, we can calculate the spending variance using the actual and expected costs:

Spending variance = actual cost - expected cost = $8,150 - $7,751 = $399 U

Therefore, the closest answer choice is C) $353 U.

Ingrum Framing's Cost Formula for Its Supplies Cost Is $1,120