Chapter 9, Problem 25C

1.

To determine

Concept Introduction:

Spending variance: It is the difference between the actual expense and the expected expense. If the actual expense is more than the budgeted expense, then it is considered unfavorable for the company. On the other hand, if the actual expense is less than the budgeted expense it is a favorable situation for any company.

To calculate: The spending variances for March.

2.

To determine

Concept Introduction:

Spending variance: It is the difference between the actual expense and the expected expense. If the actual expense is more than the budgeted expense, then it is considered unfavorable for the company. On the other hand, if the actual expense is less than the budgeted expense it is a favorable situation for any company.

To discuss: The way in which original cost control report differs from the spending variance report.