Zike Corporation's Static Planning Budget for October Appears Below

question 246

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 equipment depreciation in the flexible budget performance report for the month should be:

• A)$970 F
• B)$970 U
• C)$2,330 U
• D)$2,330 F

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