1. Bamba Corporation's cost formula for its selling and administrative expense is $47,900 per month plus $52 per unit. For the month of April, the company planned for activity of 6,000 units, but the actual level of activity was 5,960 units. The actual selling and administrative expense for the month was $364,490. The spending variance for selling and administrative expense in April would be closest to:

$6,670 U $4,590 U $4,590 F $6,670 F

2. Stock Manufacturing Corporation has prepared the following overhead budget for next month. Activity level...................................... 6,900 machine-hours

Variable overhead costs: Supplies................................... $21,390 Indirect labor.............................. 41,400 Fixed overhead costs: Supervision................................ 14,600 Utilities.................................. 3,500 Depreciation............................... 6,700 Total overhead cost...................... $87,590

The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 6,600 machine-hours rather than 6,900 machine-hours?

a. $84,860.00 b. $84,321.00 c. $83,781.74 d. $87,590.00