Medlar Corporation's static planning budget for June appears below. The company bases its budgets on machine-hours. In June, the actual number of machine-hours was 9,300, the actual supplies cost was $19,760, the actual power cost was $35,720, the actual salaries cost was $27,130, and the actual equipment depreciation was $39,430.The spending variance for equipment depreciation in the flexible budget performance report for the month should be:
A) $1,490 F
B) $1,490 U
C) $270 U
D) $270 F

Question

Medlar Corporation's static planning budget for June appears below. The company bases its budgets on machine-hours.  In June, the actual number of machine-hours was 9,300, the actual supplies cost was $19,760, the actual power cost was $35,720, the actual salaries cost was $27,130, and the actual equipment depreciation was $39,430.The spending variance for equipment depreciation in the flexible budget performance report for the month should be:
A) $1,490 F 
B) $1,490 U 
C) $270 U 
D) $270 F

Quizplus · Accepted Answer

The Answer of Medlar Corporation's static planning budget for June appears below. The company bases its budgets on machine-hours.  In June, the actual number of machine-hours was 9,300, the actual supplies cost was $19,760, the actual power cost was $35,720, the actual salaries cost was $27,130, and the actual equipment depreciation was $39,430.The spending variance for equipment depreciation in the flexible budget performance report for the month should be:
A) $1,490 F 
B) $1,490 U 
C) $270 U 
D) $270 F

Medlar Corporation's Static Planning Budget for June Appears Below