Medlar Corporation's Static Planning Budget for June Appears Below

question 160

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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