Moncrief Corporation Bases Its Budgets on Machine-Hours

question 56

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

• A) $1,890 U
• B) $90 F
• C) $90 U
• D) $1,890 F

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Definitions:

Appreciates

When the value of an asset or currency increases in value in comparison to another currency or benchmark.

Non-Free Trade

Trade practices where governments impose tariffs, quotas, or regulations to restrict the free flow of goods and services between countries.

Agricultural Subsidies

Government payments to farmers to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such goods.

Tariff

A tax imposed on imported goods, intended to increase the price of foreign products to protect domestic producers.