1.At Worthe Corporation, indirect labor is a variable cost that varies with direct labor-

hours. Last month's performance report showed that actual indirect labor cost totaled $7,920 for the month and that the associated spending variance was $240 F. If 10,200 direct labor - hours were actually worked last month, then the flexible budget cost formula for indirect labor must be (per direct labor - hour) closest to:

A.$0.95

B.$0.90

C.$0.80

D.$0.85

2.ekuterski 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 $45,700 per month plus $2,892 per flight plus $4 per passenger. The company expected its activity in November to be 81 flights and 283 passengers, but the actual activity was 80 flights and 282 passengers. The actual cost for plane operating costs in November was $286,360. The plane operating costs in the flexible budget for November would be closest to:

A.$286,360

B.$277,614

C.$281,084

D.$278,188

3.Gandrud Kennel uses tenant - days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant - day. During June, the kennel budgeted for 2,600 tenant - days, but its actual level of activity was 2,580 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

	Fixed element per mont	Variable element
REVENUE	-----	37.10
WAGES AND SALRIES	3,400	7.30
fOOD AND SUPPLIES	1,200	14.00
fACILITY EXPENSES	9,600	2.60
Administrative expenses	7,700	.30
Total expenses	21,900	24.20

The food and supplies in the flexible budget for June would be closest to:

A.$36,993

B.$37,569

C.$37,600

D.$37,320

The facility expenses in the flexible budget for June would be closest to:

A.$16,308

B.$16,360

C.$16,223

D.$15,974

The net operating income in the flexible budget for June would be closest to:

A.$11,640

B.$14,332

C.$11,382

D.$14,113

4.Labombard Clinic uses client - visits as its measure of activity. During February, the clinic budgeted for 3,600 client - visits, but its actual level of activity was 3,650 client - visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:Data used in budgeting:

	Fixed element per mont	Variable element per client
Revenu	----------------------	23.60
Personnel expenses	26,100	5.90
Medical supplies	800	4.00
Occupancy expenses	6,300	1.00
Administrative expenses	4,00	.20
total expenses	37,200	11.10

Actual results for February:

Revenue	84,290
Personnel expenses	47,075
medical expenses	14,700
Occupancy expenses	10,110
Admin expenses	4,920

The personnel expenses in the planning budget for February would be closest to:

A.$47,635

B.$47,340

C.$47,075

D.$46,430

The administrative expenses in the planning budget for February would be closest to:

A.$4,853

B.$4,920

C.$4,720

D.$4,730

The net operating income in the planning budget for February would be closest to:

A.$7,382

B.$7,800

C.$8,425

D.$7,589