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4 years ago

Deluca Manufacturing prepared the following cost control report for the prior month:

Business

1 answer:

Blababa [14]4 years ago

5 0

Answer:

The spending variance for Utilities is $ 2,900(F)

Explanation:

In order to calculate the spending variance for Utilities we woud have to calculate first the Total Budgeted Cost as follows:

Budgeted variable cost for 30000 hours = $ 82,000-13,000 = $ 69,000

Budgeted variable cost for 33000 hours = $ 69,000x(33000/30000)

= $ 75,900

Therefore, Total Budgeted Cost = $ 75,900+13,000= $ 88,900

Spending Variance = Budgeted Cost-Actual Cost

Spending Variance =$ 88,900- $86,000

Spending Variance =$ 2,900(F)

The spending variance for Utilities is $ 2,900(F)

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