Dure Corporation's cost formula for its selling and administrative expense is $24,500 per month plus $1 per unit. For the month of July, the company planned for activity of 7,200 units, but the actual level of activity was 7,160 units. The actual selling and administrative expense for the month was $31,460.
-The spending variance for selling and administrative expense in July would be closest to:
A) $240 U
B) $200 U
C) $200 F
D) $240 F

Question

Quizplus · Accepted Answer

11ea7761_1764_db64_81a5_5f3a6042dfc6_TB2580_00 Because the actual expense is less than the flexible budget, the variance is favorable (F).

Dure Corporation's Cost Formula for Its Selling and Administrative Expense