Medlar Corporation's Static Planning Budget for June Appears Below

question 381

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 equipment depreciation in the flexible budget performance report for the month should be:

• A) $1,490 F
• B) $1,490 U
• C) $270 U
• D) $270 F

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Definitions:

Union Contract

A legally binding agreement between a labor union and an employer that outlines the conditions of employment, wages, and other work-related issues.

Internal Dispute

A conflict within an organization or between its members that does not involve external parties.

Employment Lawsuit

A legal case initiated by an employee or group of employees against an employer, typically over disputes related to job termination, discrimination, or wage issues.

Arbitration Agreements

Legal contracts in which parties agree to resolve disputes through an arbitrator rather than through the court system.