Moncrief Corporation bases its budgets on machine-hours. The company's static planning budget for July appears below:

Budgeted number of machine-hours		1,000
Supplies (@ $8.60 per machine-hour)	$	8,600
Power (@ $8.80 per machine-hour)		8,800
Salaries		11,300
Equipment depreciation		9,900
Total	$	38,600

Actual results for the month were:

Actual number of machine-hours		1,200
Supplies	$	10,290
Power	$	10,860
Salaries	$	11,690
Equipment depreciation	$	9,990

The spending variance for power costs in the flexible budget performance report for the month should be:

Multiple Choice

• $300 U

• $2,060 F

• $2,060 U

• $300 F