Question

Photo Framing's cost formula for its supplies cost is $1,000 per month plus $10 per frame. For the month of November, the company planned for activity of 610 frames, but the actual level of activity was 600 frames. The actual supplies cost for the month was $7,600. The spending variance for supplies cost in November would be closest to:

Answer 1

$600 U

Step-by-step explanation:

Calculation to determine what The spending variance for supplies cost in November would be closest to:

Actual results$ 7600

Less Flexible budget $7,000

($1,000 + $10 × 600)

Spending variance $600 U

($7,600-$7,000)

Therefore The spending variance for supplies cost in November would be closest to: $600 U