Question
Medlar Corporation's static planning budget for June appears below. The company bases its budgets on machine-hours. Budgeted number of machine-hours 8,900 Supplies (@ $2.20 per
Medlar Corporation's static planning budget for June appears below. The company bases its budgets on machine-hours.
Budgeted number of machine-hours | 8,900 |
---|---|
Supplies (@ $2.20 per machine-hour) | $ 19,580 |
Power (@ $3.80 per machine-hour) | 33,820 |
Salaries | 26,700 |
Equipment depreciation | 39,160 |
Total | $ 119,260 |
In June, the actual number of machine-hours was 9,300, the actual supplies cost was $19,760, the actual power cost was $35,720, the actual salaries cost was $27,130, and the actual equipment depreciation was $39,430.
What should be the spending variance for supplies cost in the flexible budget performance report for the month ?
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
5th edition
9780133851281, 013385129x, 9780134077321, 133866297, 133851281, 9780133851298, 134077326, 978-0133866292
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