Answer:
option (a) $2,052 U
Explanation:
Data provided in the question:
Ramkissoon Midwifery's cost formula for its wages and salaries
= $2,060 per month + $442 per birth
Total number of births = 117
Actual births = 114
Actual wages and salaries for the month = $54,500
Now,
Spending variance = standard cost - Actual cost
or
= ( $2,060 × 1 ) + ( $442 × 114 ) - $54,500
= $2,060 + $50,388 - $54,500
= - $2052 or $2,052 U
Hence,
The answer is option (a) $2,052 U
