Frekko Company collected the following information:
-Using the three variance method, what is the spending variance?
A) $36,000 (
B) $30,000 (
C) $36,000 (
D) $30,000 (

Question

Frekko Company collected the following information:   
-Using the three variance method, what is the spending variance?
A) $36,000 (
B) $30,000 (
C) $36,000 (
D) $30,000 (

Quizplus · Accepted Answer

The spending variance is calculated as the difference between the actual costs and the flexible budget costs. If the actual costs are higher, it is unfavorable (U). Here, $36,000 (U) is the correct spending variance.

Frekko Company Collected the Following Information