Deluca Manufacturing prepared the following cost control report for the prior month:
Planning...
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Deluca Manufacturing prepared the following cost control report for the prior month:
Planning Budget Actual Results Variances
Direct labor hours 30,000 33,000
Direct materials $45,000 $55,000 $10,000 U
Direct labor wages $480,000 $520,000 $40,000 U
Maintenance $125,000 $136,000 $11,000 U
Utilities $82,000 $86,000 $4,000 U
Rent $65,000 $65,000 $0
Depreciation $27,000 $27,000 $0
Total: $824,000 $889,000 $65,000 U
Direct materials and direct labor wages are variable costs; rent and depreciation are fixed costs; and maintenance and utilities are mixed costs. The fixed component of the budgeted maintenance cost is $35,000; the fixed component of the budgeted utilities cost is $13,000.
Required:
1. What is the spending variance for Utilities?
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