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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
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 equipment depreciation in the flexible budget performance report for the month should be:
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