Asked by Ashley Lowell on May 07, 2024

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The spending variance for laundry costs for the month is:

A) $5,080 F
B) $5,080 U
C) $5,800 U
D) $5,800 F

Spending Variance

The difference between the actual spending and the budgeted or planned spending in a budgetary control system.

Laundry Costs

Expenses associated with the cleaning of textiles, garments, and other fabrics, often considered in both personal finance and in the operating costs of businesses that require frequent laundering of uniforms or linens.

  • Understand how to calculate and interpret spending deviations across distinct cost categories.
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JT
Jessica TrussMay 11, 2024
Final Answer :
B
Explanation :
The spending variance is calculated as Actual Cost minus Budgeted Cost. From the given information, we can calculate the actual cost as $19,080 and the budgeted cost as $14,000. Therefore, the spending variance is $19,080 - $14,000 = $5,080 U (unfavorable). So, the correct choice is B.
Explanation :
  Because the actual expense is greater than the flexible budget, the variance is unfavorable (U). Because the actual expense is greater than the flexible budget, the variance is unfavorable (U).