1.

Schlick Framing's cost formula for its supplies cost is $1,790 per month plus $10 per frame. For the month of August, the company planned for activity of 619 frames, but the actual level of activity was 624 frames. The actual supplies cost for the month was $8,500. The activity variance for supplies cost in August would be closest to:

a. $50 U

b. $520 F

c. $50 F

d. $520 U 2.

Paradiso Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,260 patient-visits and the actual level of activity was 1,250 patient-visits. The cost formula for administrative expenses is $5.00 per patient-visit plus $27,000 per month. The actual administrative expense was $25,300. In the clinic's flexible budget performance report for last month, the spending variance for administrative expenses was:

a. $7,950 F

b. $3,220 U

c. $50 F

d. $8,000 F 3.

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 $520 per month plus $101 per job plus $32 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 22 jobs and 132 meals, but the actual activity was 16 jobs and 139 meals. The actual cost for catering supplies in May was $6,350. The spending variance for catering supplies in May would be closest to:

a. $234 U

b. $234 F

c. $616 F

d. $616 U