4 acct questions, easy 111

Let q₁ represent customer visits, and let q₂ represent hours of operations. The electricity cost for a hair salon depends on both customer-visits and the hours of operations. Its cost formula is $340 + $0.20q₁ + $1.40 q₂. If the actual number of customer visits is 740 and the salon was open for 140 hours during the month, what would be the flexible budget amount for electricity?

	$1,404
	$684
	$1,524
	$808

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Community Clinic measures its activity in terms of patient-visits. In October, the budgeted level of activity was 1,580 patient-visits and the actual level of activity was 1,700 patient-visits. The cost formula for administrative expenses is $2.50 per patient-visit plus $18,400 per month. The actual administrative expense for April was $22,875. What was the spending variance for administrative expenses for October?

	$375 U
	$225 U
	$525 U
	$300 U

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When the average selling price is greater than expected, the revenue variance is:

	labeled as unfavorable.
	an activity variance.
	labeled as favorable.
	cannot be labeled as favorable or unfavorable without additional information.

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Complete the following sentence: The materials quantity variance should be computed:

	based upon the difference between the actual and standard prices per unit times the actual quantity used.
	based upon the amount of materials used in production.
	only when there is a difference between standard and actual cost per unit for the materials.
	when materials are purchased.