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Advocard [28]
2 years ago
11

Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2,600 per month plus $51 per boat. For the month of

April, the company planned for activity of 56 boats, but the actual level of activity was 15 boats. The actual cleaning equipment and supplies for the month was $3,450. The spending variance for cleaning equipment and supplies in April would be closest to: Multiple Choice $85 F $2,006 F $85 U $2,006 U
Business
1 answer:
Lyrx [107]2 years ago
7 0

Answer:

The Correct answer is $85 U.

Explanation:

Spending change is the contrast among the real and expected (planned) measure of a cost  

Genuine Spending on cleaning equipment and supplies in April = $3,450  

Planned Spending in cleaning equipment and supplies in April = $2600 + $51 × 15 boat = $ 3365  

Difference among Budgeted and Actual is $ 85 for example abundance spending than planned subsequently this difference is Unfavorable  for organization.

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<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.  </em>

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                                                                                                  $

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Net income after further processing                                     <u> (9) </u>

Financial disadvantage from further processing = $(9)

<em>Kindly note that the allocated joint costs( cost of sugar and crushing) are irrelevant. This implies that whether or not the intermediate products are processed further the joint costs are irrelevant to the decision to process the beet juice further</em>.

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