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 occupancy costs in the flexible budget performance report for the month is:
A) $2,110 U
B) $2,990 U
C) $2,990 F
D) $2,110 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 occupancy costs in the flexible budget performance report for the month is:
A) $2,110 U 
B) $2,990 U 
C) $2,990 F 
D) $2,110 F

Quizplus · Accepted Answer

11ea7761_1782_9c31_81a5_7d16e1c7a868_TB2580_00 Because the actual expense is less than the flexible budget, the variance is favorable (F).

Isadore Hospital Bases Its Budgets on Patient-Visits