Assume that the amount of one of a companys variable expenses in its flexible budget is $40,000. The actual amount of the expense is $42,000 and the amount in the companys planning budget is $44,800. The activity variance for this expense is:

Multiple Choice

• $2,400 U.

• $4,800 F.

• $2,400 F.

• $4,800 U.

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Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked):

Rent (fixed)	$ 3,000
Supplies (variable)	$ 4.50q
Utilities (mixed)	$150 + $0.75q

The companys planned level of activity was 2,000 hours and its actual level of activity was 1,850 hours. How much supplies expense would be included in the flexible budget?

Multiple Choice

• $9,675

• $8,325

• $9,000

• $8,625