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?
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 8EB: Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450...
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Am. 104.
Transcribed Image Text: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?
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