Moncrief Corporation bases its budgets on machine-hours. The company's static planning budget for July appears below: Actual results for the month were:
The spending variance for supplies costs in the flexible budget performance report for the month should be:
A) $30 F
B) $1,690 F
C) $1,690 U
D) $30 U

Question

Moncrief Corporation bases its budgets on machine-hours. The company's static planning budget for July appears below:  Actual results for the month were:
 The spending variance for supplies costs in the flexible budget performance report for the month should be:
A) $30 F 
B) $1,690 F 
C) $1,690 U 
D) $30 U

Quizplus · Accepted Answer

11eacbfc_c5af_2b96_8ffe_0b26df4df145_TB7552_00 Because the actual expense is less than the flexible budget, the variance is favorable (F).

Moncrief Corporation Bases Its Budgets on Machine-Hours