Question
Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed)
Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked):
| Rent (fixed) | $ 3,000 |
|---|---|
| Supplies (variable) | $ 4.00q |
| Utilities (mixed) | $150 + $0.75q |
The companys planned level of activity was 2,000 hours and its actual level of activity was 1,880 hours. The actual amount of supplies expense for the period was $7,800. What is the activity variance for supplies expense?
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Auditing Humor And Other Oxymorons
Authors: Mr Mike Jacka
1st Edition
0991280903, 978-0991280902
