Question
19. Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent
19.
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) | $ 4.50q |
| Utilities (mixed) | $150 + $0.75q |
The companys planned level of activity was 2,000 hours and its actual level of activity was 1,850 hours. How much supplies expense would be included in the flexible budget?
Multiple Choice
-
$9,675
-
$8,325
-
$9,000
-
$8,625
20.
Assume that a company provided the following excerpts of information from its flexible budget performance report:
| Actual Results | Flexible Budget | Planning Budget | |
|---|---|---|---|
| Flights (q) | 52 | ? | ? |
| Expenses: | |||
| Wages and salaries ($4,000 + $88.00q) | $ 8,510 | ? | $ 8,400 |
What is the spending variance for wages and salaries expense?
Multiple Choice
-
$176 U
-
$176 F
-
$66 F
-
$66 U
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Managerial Accounting
Authors: Karen Wilken Braun, Wendy M. Tietz
2nd Custom Edition
1269396803, 978-1269396806
