Zike Corporation's Static Planning Budget for October Appears Below

question 236

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

• A)$940 F
• B)$1,630 U
• C)$940 U
• D)$1,630 F

---

Definitions:

Pumpkin Pies

Traditional American dessert pies made from a spiced pumpkin-based custard filling.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing to be enforceable.

Signed

Refers to the act of putting one's signature on a document, symbolizing agreement, acknowledgment, or consent.

Oral Contract

An agreement between parties spoken and agreed upon verbally, rather than in written form; although legally binding, it may be harder to prove.