1. Assume that a company has two cost driversnumber of courses and number of students. The planned number of courses and students were 5 and 100, respectively. The actual number of courses and students were 6 and 110, respectively. One of the companys expenses is influenced by both cost drivers and it has a fixed element as well. Its cost formulas are $50 per course, $5 per student, and $1,000 per period. The total actual amount of this expense is $1,880. The spending variance for this expense would be:

a. 30 U

b. $30 F

c. $130 F

d. $130 U

2. Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked):

Rent (fixed)		$3,000
Supplies (variable)		$4.00q
Utilities (mixed)		$150 + $0.75q

The companys planned level of activity was 2,000 hours and its actual level of activity was 1,900 hours. If these are the companys only three expenses, what total amount of expense would appear in the companys flexible budget?

a. $12025

b. $12175

c. $12650

d. $12250