2. Verona Tech is a vocation school. The school bases its budgets on two measure

Question

2. Verona Tech is a vocation school. The school bases its budgets on two measures of activity of students and number of courses. The school uses the following data in its budgeting: Fixed cost per month $4,000 $1,000 Variable cost per Variable cost per student SO $10 course $20 $50 $30 Faculty wages Course supplies Administrative expenses $2,000 $20 In July, the school budgeted for 300 students and 15 courses. Actual results for the month appear below: Number of Students Number of Courses Faculty wages 280 18 $4.200 $4,800 Administrative expenses $8,300 Course supplies What is the spending variance for course supplies (choose the closest answery? A. $100 U B. $50 U C $100 F D. $50 F E. $350 F

Explanation / Answer

Course supplies in flexible budget = 1000+(280*10)+(18*50)= 4700 Spending variance = 4800-4700 = $100 U Option A is correct

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