Zike Corporation's static planning budget for October appears below. The company bases its budget on machine hours. Budgeted number of machine hours 5,700 Supplies (@$2.30 per machine-hour) $13,110 Power (@$8.00 per machine-hour) $45,600 $15,390 $62,700 $136,800 Salaries Equipment depreciation Total In October, the actual number of machine hours was 6,000, the actual supplies cost was $14,740, the actual power cost was $49,170, the actual salaries cost was $15,390, and the actual equipment depreciation was $63,670. The spending variance for power cost in the flexible budget performance report for the month should be: a. $3,570 U b. $1,170 U c. $3,570 F d. $1,170 F

Zike Corporation's static planning budget for October appears below. The company bases its budget on machine hours. Budgeted number of machine hours 5,700 Supplies (@$2.30 per machine-hour) $13,110 Power (@$8.00 per machine-hour) $45,600 $15,390 $62,700 $136,800 Salaries Equipment depreciation Total In October, the actual number of machine hours was 6,000, the actual supplies cost was $14,740, the actual power cost was $49,170, the actual salaries cost was $15,390, and the actual equipment depreciation was $63,670. The spending variance for power cost in the flexible budget performance report for the month should be: a. $3,570 U b. $1,170 U c. $3,570 F d. $1,170 F

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

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 45BEB: Pilsner Inc. purchases raw materials on account for use in production. The direct materials...

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