Answer the following questions using the information below:
Hector's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance.

-The actual amount spent for Material A was:
A)$18,800
B)$20,200
C)$19,800
D)$21,000

Question

Answer the following questions using the information below:
Hector's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance.
 
-The actual amount spent for Material A was:
A)$18,800 
B)$20,200 
C)$19,800 
D)$21,000

Quizplus · Accepted Answer

According to the flexible budget, the expected cost of Material A was $20,000. The actual amount spent was $19,800. This represents a favorable variance of $200, which means that the actual cost was lower than expected. Therefore, the best choice is C, $19,800. The other answer choices represent either an unfavorable variance (B and D) or are not within the range of the flexible budget (A).

Answer the Following Questions Using the Information Below