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Zike Corporation's static planning budget for October appears below. The company bases its budgets on machine-hours. Budgeted number of machine-hours 5,700 Supplies (@ $2.30 per
Zike Corporation's static planning budget for October appears below. The company bases its budgets on machine-hours.
Budgeted number of machine-hours | 5,700 |
Supplies (@ $2.30 per machine-hour) | $13,110 |
Power (@ $8.00 per machine-hour) | 45,600 |
Salaries | 15,390 |
Equipment depreciation | 62,700 |
Total | $136,800 |
In October, the actual number of machine-hours was 6,000, the actual supplies cost was $14,740, the actual power cost was $49,170, the actual salaries cost was $15,390, and the actual equipment depreciation was $63,670. The spending variance for power cost in the performance report for the month should be:
$3,570 F
$3,570 U
$1,170 F
$1,170 U
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