Question

fancy nails has an estimated cost supply of $0.75 per manicure. June's budget was based on 2,400 manicures and a total cost for supplies of $1800. June's actual activity was 2,500 manicures. total cost of supplies in June was $2000. calculate the spending variance for June.

Answer 1

To calculate the spending variance in June, subtract the standard cost of supplies from the actual cost of supplies.

Step-by-step explanation:

The spending variance for June can be calculated by subtracting the standard cost of supplies from the actual cost of supplies. The standard cost of supplies can be found by multiplying the estimated cost per manicure ($0.75) by the number of manicures in the budget (2,400):

Standard cost of supplies = $0.75/manicure x 2,400 manicures = $1,800

The actual cost of supplies is given as $2,000. So, the spending variance can be calculated:

Spending variance = Actual cost of supplies - Standard cost of supplies

= $2,000 - $1,800

= $200