Isadore Hospital bases its budgets on patient-visits. The hospital's static planning budget for July appears below:
Actual results for the month were:

-The spending variance for supplies costs in the flexible budget performance report for the month is:
A) $2,370 U
B) $2,370 F
C) $2,830 F
D) $2,830 U

Question

Isadore Hospital bases its budgets on patient-visits. The hospital's static planning budget for July appears below:
  Actual results for the month were:
 
-The spending variance for supplies costs in the flexible budget performance report for the month is:
A) $2,370 U 
B) $2,370 F 
C) $2,830 F 
D) $2,830 U

Quizplus · Accepted Answer

11ea7761_1782_4e0f_81a5_313532f454ca_TB2580_00 Because the actual expense is greater than the flexible budget, the variance is unfavorable (U).

Isadore Hospital Bases Its Budgets on Patient-Visits