Question 2
3.55 pts
A corporation measures its activity in terms of units produced. Last month, the budgeted
level of activity was 14,800 units and the actual level of activity was 15,100 units. The
company's owner budgets for direct materials, a variable cost, at $0.51 per unit. The actual
direct materials cost last month was $8,660. In the company's flexible budget
performance report for last month, what would have been the spending variance for direct
materials costs?
$1,112 U
$959 U
$172 U
$153 U