Moncrief Corporation bases its budgets on machine-hours. The company's static planning budget for July appears below: Budgeted number of machine-hours Supplies (@ $8.60 per machine-hour) Power (@ $8.80 per machine-hour) 1,000 $ 8,600 8,800 Salaries 11,300 Equipment depreciation 9,900 Total $ 38,600 Actual results for the month were: Actual number of machine-hours 1,200 $ 10,290 $ 10,860 $ 11,690 $ 9,990 Supplies Power Salaries Equipment depreciation The spending variance for power costs in the flexible budget performance report for the month should be:

Moncrief Corporation bases its budgets on machine-hours. The company's static planning budget for July appears below: Budgeted number of machine-hours Supplies (@ $8.60 per machine-hour) Power (@ $8.80 per machine-hour) 1,000 $ 8,600 8,800 Salaries 11,300 Equipment depreciation 9,900 Total $ 38,600 Actual results for the month were: Actual number of machine-hours 1,200 $ 10,290 $ 10,860 $ 11,690 $ 9,990 Supplies Power Salaries Equipment depreciation The spending variance for power costs in the flexible budget performance report for the month should be:

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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