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Wolfpack Inc. operates concession stands at a college football stadium. It uses sodas sold as its measure of activity. Monthly planning budget amounts and actual
Wolfpack Inc. operates concession stands at a college football stadium. It uses sodas sold as its measure of activity. Monthly planning budget amounts and actual results for the month of October are given in the table below Actual Revenue Flexible-budgetAcivityPlanning Total Results Variances Static) Variance Budget Spending Variances 30,000 30,000 Sodas sold 112 Revenue $1 $3.50g) Expenses $1.00q) ages and salaries $9,000+ $10a) Supplies $.15a) 550 Insurance ($5,000+ $.05a) Rent ($4,000) Total expenses 58 Net operating income The total variance can always be broken down into two components, "activity" and revenue and spending" Which one of the following is true for the Supplies" variances for Wolfpack Inc. for the month of October? Revenue and Spending Variance Variance Favorable Favorable B. Favorable | Unfavorable Unfavorable Favorable D. Unfavorable Unfavorable
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