Cadavieco Detailing's cost formula for its materials and supplies is $1,990 per month plus $8 per vehicle. For the month of November, the company planned for activity of 92 vehicles, but the actual level of activity was 52 vehicles. The actual materials and supplies for the month was $2,440.
-The spending variance for materials and supplies in November would be closest to:
A)$34 F
B)$286 F
C)$34 U
D)$286 U

Question

Quizplus · Accepted Answer

Since actual expenses ($14,566) are higher than the standard expenses ($14,532) for the same amount of materials and supplies used, the variance is unfavorable, meaning it is costing more than expected. The difference between actual and standard expenses is $34, thus the answer is (C) $34 U (Unfavorable).

Cadavieco Detailing's Cost Formula for Its Materials and Supplies Is