Asked by ALEXANDER STEPHAN MACHHOLZ on Jul 16, 2024
Verified
The spending variance for occupancy costs for the month is:
A) $2,110 U
B) $2,990 U
C) $2,990 F
D) $2,110 F
Occupancy Costs
Expenses related to occupying a space, including rent, utilities, and other facility-related costs.
Spending Variance
The difference between the actual spending and the budgeted or planned spending in a given period.
- Perceive the spending variance concept and ascertain how it's calculated for various categories, including manufacturing overhead, refurbishment materials, other miscellaneous costs, equipment depreciation, cost of supplies, occupancy expenses, salaries and wages of employees, facility costs, travel expenditures, power costs, and expenses on medical supplies.
Verified Answer
HD
Hajar DarwishJul 18, 2024
Final Answer :
D
Explanation : 
Because the actual expense is less than the flexible budget, the variance is favorable (F).
Reference: CH09-Ref28
Lenci Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During May, the company budgeted for 5,100 units, but its actual level of activity was 5,050 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Actual results for May: 
Because the actual expense is less than the flexible budget, the variance is favorable (F).Reference: CH09-Ref28
Lenci Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During May, the company budgeted for 5,100 units, but its actual level of activity was 5,050 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Actual results for May: 
Learning Objectives
- Perceive the spending variance concept and ascertain how it's calculated for various categories, including manufacturing overhead, refurbishment materials, other miscellaneous costs, equipment depreciation, cost of supplies, occupancy expenses, salaries and wages of employees, facility costs, travel expenditures, power costs, and expenses on medical supplies.
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