Cadavieco Detailing's cost formula for its materials and supplies is $2,070 per month plus $13 per vehicle. For the month of November, the company planned for activity of 87 vehicles, but the actual level of activity was 47 vehicles. The actual materials and supplies for the month was $2,430. The spending variance for materials and supplies in November would be closest to:
A. $771 U
B. $251 F
C. $771 F
D. $251 U
An expense variance is a measure of actual expense versus planned expense. Negative variances are favorable, while positive variances are unfavorable.
Answer and Explanation:
The closes answer is B. $251F. However, this amount is relatively far from the actual answer, which is $160F. Support is below.
Actual Spend =...
See full answer below.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
fromChapter 9 / Lesson 16
Calculating variances is one component of budgeting and accounting in business. Understand the definition of variances in budgets, and examine how variances are calculated and analyzed.