Waters Company\'s cost formula for its supplies cost is $1,100 per month plus $1

Question

Waters Company's cost formula for its supplies cost is $1,100 per month plus $10 per unit. For the month of July, the company planned for activity of 620 units, but the actual level of activity was 610 units. The actual supplies cost for the month was $7,000. The spending variance for supplies cost in July would be closest to:

$200 F

$200 U

$300 F

$300 U

Waters Company's cost formula for its supplies cost is $1,100 per month plus $10 per unit. For the month of July, the company planned for activity of 620 units, but the actual level of activity was 610 units. The actual supplies cost for the month was $7,000. The spending variance for supplies cost in July would be closest to:

Explanation / Answer

Flexible budget for supplies cost=1100+(610*10)= $7200 Spending variance for supplies cost=7200-7000 = $200 F Option 1 is correct

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.