Bessey Hospital bases its budgets on patient-visits. The hospital's static planning budget for January appears below:
-The spending variance for supplies costs in the flexible budget performance report for the month is:

Question

Bessey Hospital bases its budgets on patient-visits. The hospital's static planning budget for January appears below: 
-The spending variance for supplies costs in the flexible budget performance report for the month is:

Quizplus · Accepted Answer

The spending variance is calculated as the difference between the actual spending and the budgeted spending. In this case, the actual spending is $11,820 and the budgeted spending is $7,640, so the spending variance is $11,820 - $7,640 = $4,180. The "F" in the answer choice indicates that the spending variance is favorable, meaning that the actual spending was less than the budgeted spending.

Bessey Hospital Bases Its Budgets on Patient-Visits