Neeb Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 7,000 units, but its actual level of activity was 7,040 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting:
Actual results for January:
The spending variance for manufacturing overhead in January would be closest to:

Question

Neeb Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 7,000 units, but its actual level of activity was 7,040 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting:
 Actual results for January:
 The spending variance for manufacturing overhead in January would be closest to:

Quizplus · Accepted Answer

11eacbfc_c59e_ff79_8ffe_4d5f9105e915_TB7552_00 Because the actual expense is less than the flexible budget, the variance is favorable (F).

Neeb Corporation Manufactures and Sells a Single Product