A.)

Thomasson 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 $36,180 per month plus $2,046 per flight plus $1 per passenger. The company expected its activity in April to be 78 flights and 228 passengers, but the actual activity was 77 flights and 233 passengers. The actual cost for plane operating costs in April was $191,500. The activity variance for plane operating costs in April would be closest to:

$2,041 F

$2,041 U

$4,496 U

$4,496 F

B.)

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:

$616 U

$234 U

$616 F

$234 F

C.)

Cadavieco Detailing's cost formula for its materials and supplies is $2,050 per month plus $11 per vehicle. For the month of November, the company planned for activity of 85 vehicles, but the actual level of activity was 45 vehicles. The actual materials and supplies for the month was $2,880.

The materials and supplies in the flexible budget for November would be closest to:

$2,545

$2,985

$2,880

$1,680