Medlar Corporation's Static Planning Budget for June Appears Below

question 33

Multiple Choice

Medlar Corporation's static planning budget for June appears below. The company bases its budgets on machine-hours. In June, the actual number of machine-hours was 9,300, the actual supplies cost was $19,760, the actual power cost was $35,720, the actual salaries cost was $27,130, and the actual equipment depreciation was $39,430.
The spending variance for supplies cost in the flexible budget performance report for the month should be:

• A) $180 U
• B) $700 U
• C) $700 F
• D) $180 F

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Definitions:

Long-Term Orientation

A cultural or organizational perspective that values long-range planning, perseverance, and savings for future betterment.

Cultural Values

The core principles and ideals upon which an entire community exists, influencing its behavior, customs, and traditions.

Immediate Results

Outcomes that occur or are expected to occur directly following an action or intervention without delay.

Expatriate Employees

Workers who are living and working in a country other than their native country, typically for an international organization.