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Assume that a companys planning budget is based on 2,000 units and it actually produced and sold 2,500 units. Its planning budget is based on
Assume that a companys planning budget is based on 2,000 units and it actually produced and sold 2,500 units. Its planning budget is based on the assumption that 60% of its administrative expenses are fixed and the remainder is variable. If the planning budget includes $12,000 of fixed administrative expenses and the companys actual total administrative expense for the period is $19,000, then what is the amount of the administrative expense spending variance?
Multiple Choice
$5,000 favorable
$2,000 unfavorable
$5,000 unfavorable
$3,000 favorable
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