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)
