Answered

Westonci.ca is the premier destination for reliable answers to your questions, provided by a community of experts. Discover comprehensive answers to your questions from knowledgeable professionals on our user-friendly platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

Pittman Framing's cost formula for its supplies cost is $1,110 per month plus $11 per frame. For the month of November, the company planned for activity of 621 frames, but the actual level of activity was 611 frames. The actual supplies cost for the month was $8,250. The spending variance for supplies cost in November would be closest to:

Sagot :

ayokenny2001

Answer:

See below

Explanation:

Spending variance for supplies = Standard cost - Actual cost

Standard cost formulae = $1,110 per month + $11 per frame

Standard cost for actual output = $1,110 + ($11 × 611)

= $1,110 + $6,721

= $7,831

But actual cost = $8,250

Therefore,

Spending variance would be

= $7,831 - $8,250

= $419 unfavourable

The spending variance for supplies cost in November is closest to $419 unfavourable

We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.