Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Groupe Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Groupe 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 $36,110 per month plus $2,032 per flight plus $1 per passenger. The company expected its activity in October to be 71 flights and 221 passengers, but the actual activity was 70 flights and 226 passengers. The actual cost for plane operating costs in October was $175,030. The activity variance for plane operating costs in October would be closest to: $5,573 U $2,027 U $5,573 F $2,027 F Speyer Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,100 patient-visits and the actual level of activity was 1,090 patient- visits. The cost formula for administrative expenses is $3.40 per patient-visit plus $19,000 per month. The actual administrative expense was $20,500. In the clinic's flexible budget performance report for last month, the spending variance for administrative expenses was: Multiple Choice $2.206 F $820 F $34 F $2,240 F Hirons 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 $56,990 per month plus $2,896 per flight plus $12 per passenger. The company expected its activity in November to be 80 flights and 250 passengers, but the actual activity was 83 fights and 252 passengers. The actual cost for plane operating costs November was $290,150. The spending variance for plane operating costs in November would be closest to: tn Multiple Choice $1,520 U $10,232 U $10,232 F $1,520 F Canniff 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 $56.860 per month plus $2.630 per flight plus $4 per passenger. The company expected its activity in February to be 65 flights and 266 passengers, but the actual activity was 64 flights and 267 passengers. The actual cost for plane operating costs in February was $225,000. The plane operating costs in the planning budget for February would be closest to: Multiple Choice $228,874 $227,630 $226,248 o $225,00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Anti Audit Warfare

Authors: Business Management Daily

7th Edition

1540747182, 978-1540747181

More Books

Students also viewed these Accounting questions