The spending variance for laundry costs for the month is:
A)$5,080 F
B)$5,080 U
C)$5,800 U
D)$5,800 F

Question

Quizplus · Accepted Answer

The spending variance is calculated as Actual Cost minus Budgeted Cost. From the given information, we can calculate the actual cost as $19,080 and the budgeted cost as $14,000. Therefore, the spending variance is $19,080 - $14,000 = $5,080 U (unfavorable). So, the correct choice is B. 11ea7998_5cbc_fa57_911b_053f120d89ae_TB2627_00_TB2627_00 Because the actual expense is greater than the flexible budget, the variance is unfavorable (U).

The Spending Variance for Laundry Costs for the Month Is