Genito Corporation's Static Planning Budget for October Appears Below

question 190

Multiple Choice

Genito 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 8,800, the actual supplies cost was $69,450, the actual power cost was $34,190, the actual salaries cost was $86,490, and the actual equipment depreciation was $37,600.
-The spending variance for equipment depreciation in the flexible budget performance report for the month should be:

• A) $200 U
• B) $1,120 F
• C) $200 F
• D) $1,120 U

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, especially affecting liquidity and overall financial health.

Investing Activities

Transactions and events related to the acquisition and disposal of long-term assets and other investments not considered as cash equivalents.

Consolidated Statement

Financial statements that aggregate the financial information of a parent company and its subsidiaries into one document.

Acquisition

The process of obtaining control of another company or business entity through purchase or merger.