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Zike Corporation's Static Planning Budget for October Appears Below

question 236

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Zike Corporation's static planning budget for October appears below.The company bases its budgets on machine-hours. 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 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:


Definitions:

Artificial Time Periods

Divisions of time, not naturally occurring, created for the purpose of financial reporting, budgeting, or project scheduling.

Economic Entity Assumption

An accounting principle that treats a company as a separate entity from its owners or shareholders for financial reporting purposes.

Economic Events

Transactions and occurrences that have a direct impact on the financial position and performance of a company, including both internal and external activities.

Sole Proprietorship

A business structure where an individual owns the company and is personally responsible for its debts.

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