Monroe Corporation Budgeted Fixed Costs of $250,000 for the Current

question 91

Essay

Monroe Corporation budgeted fixed costs of $250,000 for the current year.The company expected to make 20,000 units during the year.Actual fixed costs were $256,000,and Monroe actually made 22,000 units of product.
Required:
(a)Calculate the fixed cost spending variance and indicate whether it is favorable or unfavorable.
(b)Calculate the fixed cost volume variance and indicate whether it is favorable or unfavorable.Explain why the variance is favorable or unfavorable.

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Definitions:

Endogamy

The tendency of people to marry within their own social group.

Socioeconomic Status

A measure of an individual's or group's economic and social position based on income, education, and occupation.

Interracial Couples

Relationships between people of different racial backgrounds.

Relationship Satisfaction

describes the degree of happiness and fulfillment partners feel within their romantic relationship.