Courington Detailing's cost formula for its materials and supplies is $2,420 per month plus $9 per vehicle. For the month of August, the company planned for activity of 63 vehicles, but the actual level of activity was 33 vehicles. The actual materials and supplies for the month was $2,840.
Why such a great disparity between the planned and actual level of activity from 63 to 33 vehicles - should these be closer together?
Please keep as is.
-The spending variance for materials and supplies in August would be closest to:
A) $147 F
B) $123 F
C) $123 U
D) $147 U

Question

Quizplus · Accepted Answer

11ea7761_1767_e8b0_81a5_6d0e3735c95d_TB2580_00 Because the actual expense is greater than the flexible budget, the variance is unfavorable (U).

Courington Detailing's Cost Formula for Its Materials and Supplies Is