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 laundry costs in the flexible budget performance report for the month is:
A) $5,080 F
B) $5,080 U
C) $5,800 U
D) $5,800 F

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 laundry costs in the flexible budget performance report for the month is:
A) $5,080 F 
B) $5,080 U 
C) $5,800 U 
D) $5,800 F

Quizplus · Accepted Answer

11ea7761_1782_7520_81a5_df0921062b7c_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