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