Medlar Corporation's Static Planning Budget for June Appears Below

question 362

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 power cost in the flexible budget performance report for the month should be:

• A) $1,900 F
• B) $1,900 U
• C) $380 U
• D) $380 F

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Definitions:

Insurance

A financial product sold by insurance companies to safeguard against the risk of financial losses.

Construction

The process of building, erecting, or constructing buildings, roads, or other substantial structures.

Air Conditioning System

A system designed to control the temperature, humidity, and air quality in indoor spaces.

Parking Lot

An area designated for the parking of vehicles.