Lightsey Natural Dying Corporation measures its activity in terms of skeins of yarn dyed.Last month, the budgeted level of activity was 14,800 skeins and the actual level of activity was 15,100 skeins.The company's owner budgets for dye costs, a variable cost, at $0.51 per skein.The actual dye cost last month was $8,660.What would have been the spending variance for dye costs?
A)$959 U
B)$172 U
C)$1,112 U
D)$153 U

Question

Quizplus · Accepted Answer

11ea7998_5ca2_e31f_911b_7df1dbdb70d9_TB2627_00_TB2627_00 Because the actual expense is greater than the flexible budget, the variance is unfavorable (U).

Lightsey Natural Dying Corporation Measures Its Activity in Terms of Skeins