Medlar Corporation's static planning budget for June appears below. The company bases its budgets on machine-hours.
In June, the actual number of machine-hours was 9,300, the actual supplies cost was $19,760, the actual power cost was $35,720, the actual salaries cost was $27,130, and the actual equipment depreciation was $39,430.
-The spending variance for equipment depreciation in the flexible budget performance report for the month should be:

Question

Medlar Corporation's static planning budget for June appears below. The company bases its budgets on machine-hours.
  In June, the actual number of machine-hours was 9,300, the actual supplies cost was $19,760, the actual power cost was $35,720, the actual salaries cost was $27,130, and the actual equipment depreciation was $39,430.
-The spending variance for equipment depreciation in the flexible budget performance report for the month should be:

Quizplus · Accepted Answer

11ea7761_1784_980c_81a5_111f35221500_TB2580_00 Because the actual expense is greater than the flexible budget, the variance is unfavorable (U).

Medlar Corporation's Static Planning Budget for June Appears Below