### Supplies Cost Problem**Context:**Pittman Framing's cost formula for its supplies is $1,100 per month plus $10 per frame. For November, the company planned for activity of 620 frames, but the actual level of activity was 610 frames. The actual supplies cost for the month was $7,000. Calculate the spending variance for supplies cost in November.**Choices:**1. $200 F2. $200 U3. $300 U4. $300 F**Explanation:**To find the spending variance, calculate the expected supplies cost and compare it to the actual cost.1. **Planned costs:** - Fixed cost: $1,100 - Variable cost per frame: $10 - Frames planned: 620 - Planned supplies cost = $1,100 + ($10 * 620)2. **Actual costs:** - Actual frames: 610 - Actual supplies cost: $7,000 - Expected supplies cost = $1,100 + ($10 * 610)**Variance Calculation:**- Variance = Actual cost - Expected cost- Identify if the variance is favorable (F) or unfavorable (U).**Answer Key:**Select the correct option based on calculations.

Budgeted supplies cost = Fixed costs + Variable cost per frame x Budgeted no. of frame = $1100 +…

Answered: Pittman Framing's cost formula for its…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Pittman Framing's cost formula for its supplies cost is $1,120 per month plus $12 per frame. For the month of November, the company planned for activity of 610 frames, but the actual level of activity was 602 frames. The actual supplies cost for the month was $8,600. The spending variance for supplies cost in November would be closest to: Multiple Choice O $160 U $256 F $256 U $160 F
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Pittman Framing's cost formula for its supplies cost is $1,220 per month plus $11 per frame. For the month of November, the company planned for activity of 620 frames, but the actual level of activity was 612 frames. The actual supplies cost for the month was $7,650. The spending variance for supplies cost in November would be closest to: Multiple Cholce $390 F $390 U $302 U $302 F
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