The spending variance for occupancy costs for the month is:
A)$2,110 U
B)$2,990 U
C)$2,990 F
D)$2,110 F

Question

Quizplus · Accepted Answer

11ea7998_5cbd_4878_911b_779647cfedab_TB2627_00_TB2627_00 Because the actual expense is less than the flexible budget, the variance is favorable (F).
Reference: CH09-Ref28
Lenci Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During May, the company budgeted for 5,100 units, but its actual level of activity was 5,050 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting: 11ea7998_5cbd_4879_911b_ed1c8bd49424_TB2627_00_TB2627_00 Actual results for May: 11ea7998_5cbd_6f8a_911b_83761843bb81_TB2627_00_TB2627_00

The Spending Variance for Occupancy Costs for the Month Is