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

11ea7761_1780_0413_81a5_f5d9f6ed1e7b_TB2580_00 Because the actual expense is less than the flexible budget, the variance is favorable (F).

Moncrief Corporation Bases Its Budgets on Machine-Hours