Katy's lawn service has created the following cost formula for its operating costs: $1,350 per month and $55 per lawn. In June, Katy's estimated that it would service 150 lawns in July. In August, Katy's reviewed its July results. Actual costs were $10, 150 and Katy's serviced 155 lawns. What was the spending variance for July? Was it favorable or unfavorable?

Katy's lawn service has created the following cost formula for its operating costs: $1,350 per month and $55 per lawn. In June, Katy's estimated that it would service 150 lawns in July. In August, Katy's reviewed its July results. Actual costs were $10, 150 and Katy's serviced 155 lawns. What was the spending variance for July? Was it favorable or unfavorable?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...

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