Assume that a company has two cost driversnumber of courses and number of students. The planned number of courses and students were 5 and 100, respectively. The actual number of courses and students were 6 and 110, respectively. One of the companys expenses is influenced by both cost drivers and it has a fixed element as well. Its cost formulas are $59 per course, $7 per student, and $1,000 per period. The total cost included in the planning budget for this expense would be:

Multiple Choice

• $2,224.

• $1,895.

• $1,995.

• $2,124.

• ===

Assume a merchandising company provides the following information from its master budget for the month of May:

Sales	$ 248,000
Cost of goods sold	$ 84,500
Cash paid for merchandise purchases	$ 79,500
Selling and administrative expenses	$ 39,500
Cash paid for selling and administrative expenses	$ 40,000

What is the budgeted net operating income?

Multiple Choice

• $4,500

• $124,000

• $44,500

• $138,500

===

Assume that the amount of one of a companys fixed expenses in its flexible budget is $46,000. The actual amount of the expense is $50,400 and the amount in the companys planning budget is $46,000. The spending variance for this expense is:

Multiple Choice

• $0.

• $4,400 U.

• $4,400 F.

• $8,800 U.