Diemert Corporation Bases Its Budgets on Machine-Hours

question 2

Multiple Choice

Diemert Corporation bases its budgets on machine-hours. The company's static planning budget for June appears below: Actual results for the month were: The spending variance for supplies costs in the performance report for the month should be:

• A)$5,180 F
• B)$2,420 U
• C)$5,180 U
• D)$2,420 F

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Definitions:

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be consumed by anyone without reducing its availability to others.

Marginal Revenue

The additional revenue generated from selling one more unit of a good or service.

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be either positive or negative.

Externality

Actions of one party impose costs or benefits on a second party.