Ros Corporation's flexible budget cost formula for indirect materials, a variable cost, is $0.90 per unit of output. If the company's performance report for last month shows a $500 unfavorable spending variance for indirect materials and if 8,000 units of output were produced last month, then the actual costs incurred for indirect materials for the month must have been:a. $7,650b. $7,700c. $7,200e. $6,700

b. $7,700

Explanation:

Ros Corporation

Budget cost  indirect materials, $0.90 per unit of output

Budget cost  indirect materials$0.90 *8000= 7200

Spending variance$500 Unfavorable

Spending variance = Actual Costs - Budgeted Costs

$500 Unfavorable = Actual  Costs-  $0.90 *8000

$500 Unfavorable = Actual  Costs-  7200

Actual Costs = 7200 + 500= $7700

As spending variance is unfavorable it means that the actual costs are higher than the budgeted cost. So we get the actual costs by adding the spending variance to  the budgeted costs.

answer; organizational;

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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