Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 13

Sipple Furniture's master budget for the year includes $360,000 for fixed supervisory salaries. Practical capacity, which is used to set the fixed overhead allocation rate, is 500 units per month. Supervisory salaries are expected to be incurred uniformly throughout the year. During August, the company produced 250 units, incurred production supervisory salaries of $29,000, and reported underapplied fixed overhead of $14,000 for supervisory salaries. What is Sipple Furniture's supervisory salaries budget (spending) variance for August