Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed) Supplies (variable) Utilities (mixed) $ 3,000 $ 4.00q $150 + $0.75q The company's planned level of activity was 2,000 hours and its actual level of activity was 1,880 hours. The actual amount of supplies expense for the period was $7,800. What is the activity variance for supplies expense?

Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed) Supplies (variable) Utilities (mixed) $ 3,000 $ 4.00q $150 + $0.75q The company's planned level of activity was 2,000 hours and its actual level of activity was 1,880 hours. The actual amount of supplies expense for the period was $7,800. What is the activity variance for supplies expense?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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