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33. Thomasson Air uses two measures of activity, flights and passengers, in the cost formulas
in its budgets and performance reports. The cost formula for plane operating costs is $36,160 per
month plus $2,038 per flight plus $1 per passenger. The company expected its activity in April to
be 73 flights and 223 passengers, but the actual activity was 72 flights and 228 passengers. The
actual cost for plane operating costs in April was $179,020. The activity variance for plane
operating costs in April would be closest to:
34. Kara Catering uses two measures of activity, jobs and meals, in the cost formulas in its
budgets and performance reports. The cost formula for catering supplies is $310 per month plus
$84 per job plus $17 per meal. A typical job involves serving a number of meals to guests at a
corporate function or at a host's home. The company expected its activity in July to be 15 jobs and
127 meals, but the actual activity was 14 jobs and 126 meals. The actual cost for catering supplies
in July was $3,620. The activity variance for catering supplies in July would be closest to:
35. Orscheln Snow Removal's cost formula for its vehicle operating cost is $2,800 per month
plus $381 per snow-day. For the month of February, the company planned for activity of 17 snow-
days, but the actual level of activity was 14 snow-days. The actual vehicle operating cost for the
month was $7,920. The activity variance for vehicle operating cost in February would be closest
to:
36. Bolick Midwifery's cost formula for its wages and salaries is $1,800 per month plus $152
per birth. For the month of May, the company planned for activity of 119 births, but the actual
level of activity was 114 births. The actual wages and salaries for the month was $19,980. The
activity variance for wages and salaries in May would be closest to:
37. Schlick Framing's cost formula for its supplies cost is $1,770 per month plus $12 per
frame. For the month of August, the company planned for activity of 628 frames, but the actual
level of activity was 631 frames. The actual supplies cost for the month was $9,790. The activity
variance for supplies cost in August would be closest to:
38. Farver Air uses two measures of activity, flights and passengers, in the cost formulas in its
budgets and performance reports. The cost formula for plane operating costs is $44,420 per
month plus $2,008 per flight plus $1 per passenger. The company expected its activity in May to
be 80 flights and 281 passengers, but the actual activity was 81 flights and 277 passengers. The
actual cost for plane operating costs in May was $199,650. The spending variance for plane
operating costs in May would be closest to:
39. Sissac Catering uses two measures of activity, jobs and meals, in the cost formulas in its
budgets and performance reports. The cost formula for catering supplies is $470 per month plus
$101 per job plus $24 per meal. A typical job involves serving a number of meals to guests at a
corporate function or at a host's home. The company expected its activity in May to be 12 jobs
and 123 meals, but the actual activity was 9 jobs and 126 meals. The actual cost for catering
supplies in May was $4,240. The spending variance for catering supplies in May would be closest
to:
40. At Jacobson Company, indirect labor is a variable cost that varies with direct labor-hours.
Last month's performance report showed that actual indirect labor cost totaled $5,780 for the
month and that the associated spending variance was $245 F. If 24,100 direct labor-hours were
actually worked last month, then the flexible budget cost formula for indirect labor must be (per
direct labor-hour):
41. Fussner Medical Clinic measures its activity in terms of patient-visits. Last month, the
budgeted level of activity was 1,610 patient-visits and the actual level of activity was 1,670
patient-visits. The cost formula for administrative expenses is $3.30 per patient-visit plus $17,900
per month. The actual administrative expense was $24,600. In the clinic's flexible budget
performance report for last month, the spending variance for administrative expenses was:
42. Brayboy Tile Installation Corporation measures its activity in terms of square feet of tile
installed. Last month, the budgeted level of activity was 1,360 square feet and the actual level of
activity was 1,300 square feet. The company's owner budgets for supply costs, a variable cost, at
$3.90 per square foot. The actual supply cost last month was $4,300. In the company's flexible
budget performance report for last month, what would have been the spending variance for supply
costs?
43. Soehl Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last
month, the budgeted level of activity was 14,100 skeins and the actual level of activity was 13,700
skeins. The company's owner budgets for dye costs, a variable cost, at $0.40 per skein. The actual
dye cost last month was $4,510. In the company's flexible budget performance report for last
month, what would have been the spending variance for dye costs?
44. Newsom Footwear Corporation's flexible budget cost formula for supplies, a variable cost,
is $2.61 per unit of output. The company's flexible budget performance report for last month
showed a $6,840 unfavorable spending variance for supplies. During that month, 17,100 units
were produced. Budgeted activity for the month had been 16,700 units. The actual cost per unit
for indirect materials must have been closest to:
45. Hamner Corporation's flexible budget performance report for last month shows that actual
indirect materials cost, a variable cost, was $45,240 and that the spending variance for indirect
materials cost was $3,480 unfavorable. During that month, the company worked 17,400 machine-
hours. Budgeted activity for the month had been 17,000 machine-hours. The cost formula per
machine-hour for indirect materials cost must have been closest to:
46. Fudala Snow Removal's cost formula for its vehicle operating cost is $1,480 per month
plus $308 per snow-day. For the month of March, the company planned for activity of 11 snow-
days, but the actual level of activity was 16 snow-days. The actual vehicle operating cost for the
month was $6,130. The spending variance for vehicle operating cost in March would be closest
to:
47. Celius Midwifery's cost formula for its wages and salaries is $2,410 per month plus $292
per birth. For the month of March, the company planned for activity of 113 births, but the actual
level of activity was 116 births. The actual wages and salaries for the month was $35,340. The
spending variance for wages and salaries in March would be closest to:
48. Ingrum Framing's cost formula for its supplies cost is $1,120 per month plus $11 per
frame. For the month of June, the company planned for activity of 611 frames, but the actual level
of activity was 607 frames. The actual supplies cost for the month was $8,150. The spending
variance for supplies cost in June would be closest to:
49. Zylka Air uses two measures of activity, flights and passengers, in the cost formulas in its
budgets and performance reports. The cost formula for plane operating costs is $47,400 per
month plus $2,337 per flight plus $3 per passenger. The company expected its activity in April to
be 67 flights and 263 passengers, but the actual activity was 62 flights and 267 passengers. The
actual cost for plane operating costs in April was $189,760. The plane operating costs in the
planning budget for April would be closest to:
50. Lantto Air uses two measures of activity, flights and passengers, in the cost formulas in its
budgets and performance reports. The cost formula for plane operating costs is $34,810 per
month plus $2,850 per flight plus $12 per passenger. The company expected its activity in June to
be 70 flights and 292 passengers, but the actual activity was 69 flights and 291 passengers. The
actual cost for plane operating costs in June was $236,550. The plane operating costs in the
flexible budget for June would be closest to:
51. The selling and administrative expense in the planning budget for April would be closest
to:
52. The selling and administrative expense in the flexible budget for April would be closest to:
53. The activity variance for selling and administrative expense in April would be closest to:
