Assume that the amount of one of a companys fixed expenses in its flexible budget is $46,000. The actual amount of the expense is $50,400 and the amount in the companys planning budget is $46,000. The spending variance for this expense is:

Multiple Choice

• $0.

• $4,400 U.

• $4,400 F.

• $8,800 U.

pt 2

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)	$ 4.50q
Utilities (mixed)	$150 + $0.75q

The companys planned level of activity was 2,000 hours and its actual level of activity was 1,850 hours. How much supplies expense would be included in the flexible budget?

rev: 06_25_2020_QC_CS-208650

Multiple Choice

• $9,675

• $8,325

• $9,000

• $8,625