Zike Corporation's static planning budget for October appears below.The company bases its budgets on machine-hours. In October, the actual number of machine-hours was 6, 000, the actual supplies cost was $14, 740, the actual power cost was $49, 170, the actual salaries cost was $15, 390, and the actual equipment depreciation was $63, 670. The spending variance for supplies cost in the flexible budget performance report for the month should be:
A)$940 F
B)$1, 630 U
C)$940 U
D)$1, 630 F

Question

Zike Corporation's static planning budget for October appears below.The company bases its budgets on machine-hours.  In October, the actual number of machine-hours was 6, 000, the actual supplies cost was $14, 740, the actual power cost was $49, 170, the actual salaries cost was $15, 390, and the actual equipment depreciation was $63, 670. The spending variance for supplies cost in the flexible budget performance report for the month should be:
A)$940 F 
B)$1, 630 U 
C)$940 U 
D)$1, 630 F

Quizplus · Accepted Answer

The Answer of Zike Corporation's static planning budget for October appears below.The company bases its budgets on machine-hours.  In October, the actual number of machine-hours was 6, 000, the actual supplies cost was $14, 740, the actual power cost was $49, 170, the actual salaries cost was $15, 390, and the actual equipment depreciation was $63, 670. The spending variance for supplies cost in the flexible budget performance report for the month should be:
A)$940 F 
B)$1, 630 U 
C)$940 U 
D)$1, 630 F

Zike Corporation's Static Planning Budget for October Appears Below