Diemert Corporation Bases Its Budgets on Machine-Hours

question 46

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

• A)$4,250 U
• B)$620 F
• C)$4,250 F
• D)$620 U

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Definitions:

Services Used

Consumption of services in operations, such as consulting, maintenance, or legal services, recorded as expenses.

Operating Alternatives

Various strategies or methods a business may consider to run its operations effectively and efficiently.

Projections

Estimates or forecasts of future financial performance, sales, revenue, or other financial metrics.

Sales Campaigns

Targeted efforts to increase product awareness or sales over a specific period using various marketing strategies.