The spending variance for equipment depreciation for the month should be:
A)$1,490 F
B)$1,490 U
C)$270 U
D)$270 F

Question

Quizplus · Accepted Answer

11ea7998_5cbe_a811_911b_7d602115d3ef_TB2627_00_TB2627_00 Because the actual expense is greater than the flexible budget, the variance is unfavorable (U).
Reference: CH09-Ref30
Rients Corporation is a service company that measures its output by the number of customers served.The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for October. 11ea7998_5cbe_cf22_911b_19c4b24757ea_TB2627_00_TB2627_00 When the company prepared its planning budget at the beginning of October, it assumed that 39 customers would have been served.However, 44 customers were actually served during October.

The Spending Variance for Equipment Depreciation for the Month Should