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Problem 9-21 (45 minutes)
1. The variance report should
not
be used to evaluate how well costs were
controlled. In July, the planning budget was based on 150 lessons, but
2. See the following page.
3. The overall activity variance for net operating income was $435 F
(favorable). That means that as a consequence of the increase in
activity from 150 lessons to 155 lessons, the net operating income
should have been up $435 over budget. However, it wasn’t. The
