Figure 18-3
Pippen Company's Activity-Based Performance Report Revealed That Actual

Figure 18-3
Pippen Company's activity-based performance report revealed that actual inspection costs totaled £100,000 at an actual activity level of 50 inspections. Further analysis of inspection costs revealed the following: $\begin{array}{l}&\text { Actual Cost } & \text { Budgeted Cost } \\\text { Inspection costs: }\\\text { Fixed } & £ 30,000 & £ 28,500 \\\text { Variable } & 20,000 & 17,500\end{array}$ Fixed inspection costs consist of the salaries of two inspectors, who are paid £14,250. Each inspector is capable of efficiently conducting inspections of 30 batches.
Variable inspection costs consist of materials used during the inspections.
-Refer to Figure 18-3. The fixed spending variance is

A) £1,500 U.
B) £1,500 F.
C) £2,100 U.
D) £2,100 F.