Zike Corporation's Static Planning Budget for October Appears Below

question 214

Multiple Choice

Zike Corporation's static planning budget for October appears below. The company bases its budgets on machine-hours. In October, the actual number of machine-hours was 6,000, the actual supplies cost was $14,740, the actual power cost was $49,170, the actual salaries cost was $15,390, and the actual equipment depreciation was $63,670. The spending variance for equipment depreciation in the performance report for the month should be:

• A)$970 F
• B)$970 U
• C)$2,330 U
• D)$2,330 F

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Definitions:

Reaction Formation

A defense mechanism in which unacceptable thoughts or desires are expressed as their opposites, often to hide one's true feelings.

Great Admiration

A feeling of profound respect and deep appreciation for someone or something's qualities or achievements.

Homosexual Desires

Sexual attraction or desire between members of the same sex.

Defense Mechanism

Psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses.