A hairstyling salon owner constructed a flexible budget projecting $1,000$ and $1,100$ customers for the month of June. The owner expects $1,000$ customers but hopes for $1,100$ customers. Average sale per customer is $$40.$

Costs include rent of $$5,000$; payments to hairstylists of $$20$ per customer; and overhead of $$10$ per customer. In June, the owner had $1,000$ customers, actual revenue of $$45,000$; and actual net income of $$8,000.$

What will the owner find concerning the total spending variance?

$$1,000$ favorable

$$1,000$ unfavorable

$$2,000$ favorable

$$2,000$ unfavorable

In June, an auto repair shop experienced a $$3,000$ unfavorable total revenue activity variance.

What is a possible cause of this variance?

The price charged to each customer was higher than planned.

There were more customers than planned

The price charged to each customer was lower than planned.

There were fewer customers than planned

The following cost information is available for a company:

Actual results

Total cost of purchasing material $$65,000$

Number of labor hours worked $1,100$ hours

Number of material pounds used in production $6,000$ pounds

Total labor cost $$48,000$

Number of units produced $320$ units

Number of material pounds purchased $6,300$ pounds

The company established the following standards:

Price per pound of materials $$11\mathrm{.}00$ per pound

Number of pounds of material to produce one unit $19$ pounds

Standard labor rate $$55\mathrm{.}00$ per hour

Number of labor hours to produce one unit $4$ hours

What is the material quantity variance?

$$2,420$ favorable$$

$$880$ favorable$$

$$880$ unfavorable

$$2,420$ unfavorable