Ask Question
27 December, 13:09

Petrus Framing's cost formula for its supplies cost is $1,730 per month plus $11 per frame. For the month of March, the company planned for activity of 613 frames, but the actual level of activity was 618 frames. The actual supplies cost for the month was $8,670. The activity variance for supplies cost in March would be closest to: Multiple Choice $55 F $55 U $197 U $197 F

+2
Answers (1)
  1. 27 December, 13:26
    0
    -$55 U

    Explanation:

    For computation of activity variance for supplies cost in March first we need to find the budgeted activity of standard supplies cost and actual activity of standard supplies cost is shown below:-

    Budgeted activity of standard supplies cost = Supplies cost + Per frame cost * budgeted Activity frames

    = $1,730 + $11 * 613

    = $1,730 + $6,743

    = $8,473

    Actual activity of Standard supplies cost = Supplies cost + Per frame cost * Actual activity frames

    = $1,730 + $11 * 618

    = $1,730 + $6,798

    = $8,528

    So, activity variance for supplies cost = Budgeted activity of standard supplied cost - Actual activity of Standard supplies cost

    = $8,473 - $8,528

    = - $55
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Petrus Framing's cost formula for its supplies cost is $1,730 per month plus $11 per frame. For the month of March, the company planned for ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers