Lartey Corporation's Cost Formula for Its Selling and Administrative Expense

question 1

Multiple Choice

Lartey Corporation's cost formula for its selling and administrative expense is $22,200 per month plus $27 per unit. For the month of December, the company planned for activity of 5,300 units, but the actual level of activity was 5,270 units. The actual selling and administrative expense for the month was $168,150.
-The spending variance for selling and administrative expense in December would be closest to:

• A)$3,660 F
• B)$3,660 U
• C)$2,850 F
• D)$2,850 U

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Definitions:

Outputs

Refers to the signals or data sent from a system to actuate or inform another system or component.

Thermocouple Temperature

A measure of temperature using a thermocouple, a type of temperature sensor made from two different metals joined at one end that generates a voltage proportional to temperature.

LED Display

A screen or panel comprised of light-emitting diodes, used for displaying information visually.

Logic

The foundation of reasoning and decision making in both computing and human thinking, involving principles of validity in arguments and operations.