Assume that a company's planning budget is based on 2,000 units and it actually produced and sold 2,500 units. Its planning budget is based on the assumption that 60% of its administrative expenses are fixed and the remainder is variable. If the planning budget includes $12,000 of fixed administrative expenses and the company's actual total administrative expense for the period is $19,000, then what is the amount of the administrative expense spending variance? Multiple Choice $5,000 favorable $2,000 unfavorable $5,000 unfavorable $3,000 favorable
Assume that a company's planning budget is based on 2,000 units and it actually produced and sold 2,500 units. Its planning budget is based on the assumption that 60% of its administrative expenses are fixed and the remainder is variable. If the planning budget includes $12,000 of fixed administrative expenses and the company's actual total administrative expense for the period is $19,000, then what is the amount of the administrative expense spending variance? Multiple Choice $5,000 favorable $2,000 unfavorable $5,000 unfavorable $3,000 favorable
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 33P
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