Medlar Corporation's Static Planning Budget for June Appears Below

question 450

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:

Duty to Aid

A legal or ethical obligation to provide assistance to others in emergency situations.

Sunbathing

The activity of sitting or lying in the sun, especially to tan the skin.

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Near-Fatal Bleeding

Severe hemorrhage that threatens life and requires immediate medical intervention to prevent death.