Burau Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 5,500 units, but its actual level of activity was 5,510 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:

Data used in budgeting:
Actual results for January:
-The spending variance for direct materials in January would be closest to:
A)$1,436 U
B)$1,560 F
C)$1,560 U
D)$1,436 F

Question

Burau Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 5,500 units, but its actual level of activity was 5,510 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:

Data used in budgeting:

Actual results for January:

-The spending variance for direct materials in January would be closest to:

Data used in budgeting:
 Actual results for January: 
-The spending variance for direct materials in January would be closest to:
A)$1,436 U 
B)$1,560 F 
C)$1,560 U 
D)$1,436 F

Quizplus · Accepted Answer

The Answer of  Burau Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 5,500 units, but its actual level of activity was 5,510 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:

Data used in budgeting:
 Actual results for January: 
-The spending variance for direct materials in January would be closest to:
A)$1,436 U 
B)$1,560 F 
C)$1,560 U 
D)$1,436 F

Burau Corporation Manufactures and Sells a Single Product