Zike Corporation's Static Planning Budget for October Appears Below

question 256

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

• A)$3,570 U
• B)$1,170 U
• C)$3,570 F
• D)$1,170 F

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