Moncrief Corporation Bases Its Budgets on Machine-Hours

question 116

Multiple Choice

Moncrief Corporation bases its budgets on machine-hours. The company's static planning budget for July appears below: Actual results for the month were:
The spending variance for supplies costs in the flexible budget performance report for the month should be:

• A) $30 F
• B) $1,690 F
• C) $1,690 U
• D) $30 U

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Definitions:

Methanol

A basic type of alcohol known by the chemical formula CH3OH, utilized in various applications including as a solvent, antifreeze, fuel, and as a starting point for the synthesis of other chemical compounds.

Relative Rate

A measure of the speed at which one reactant in a chemical reaction is consumed compared to another, often used to determine mechanisms in kinetics studies.

Reactivity

The tendency of a substance to undergo chemical reaction, either by itself or with other materials.

Substrates

The substances on which an enzyme acts during a biochemical reaction.