Waycross Construction Company Has a Pipeyard Operation Which Is Run

Multiple Choice

Waycross Construction Company has a pipeyard operation which is run as a cost center. They are preparing a performance report for the month of March and have provided the data below:
$\begin{array}{|l|r|r|r|r|r|r|}\hline \text { Cost Center } & & \text { Flexible } & \text { Flexible Budget } \\\hline \text { Performance Report } & \text { Actual } & \text { Budget } & \text { Variance } & \text { U/F } & \% \text { variance } & \text { U/F } \\\hline \text { Wages \& benefits } & \$ 81,200 & \$ 80,000 \\\hline \text { Office lease expense } & 42,060 & 45,000 \\\hline \text { Depreciation expense } & 39,600 & 42,000 \\\hline \text { Insurance expense } & 33,490 & 30,000 \\\hline \text { Other expense } & 7,120 & 8,000 \\\hline & \$ 203,470 & \$ 205,000 \\\hline\end{array}$
-
How much is the percentage variance for Wages and benefits?

A) 2.2 % F
B) 2.2 % U
C) 1.5% F
D) 1.5% U