homasson 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 $36,190 per month plus $2,048 per flight plus $1 per passenger. The company expected its activity in April to be 79 flights and 229 passengers, but the actual activity was 78 flights and 234 passengers. The actual cost for plane operating costs in April was $192,500. The activity variance for plane operating costs in April would be closest to:

A. $5,711 U

B. $5,711 F

C. $2,043 F

D. $2,043 U

3.

Ingrum Framing's cost formula for its supplies cost is $1,170 per month plus $17 per frame. For the month of June, the company planned for activity of 615 frames, but the actual level of activity was 607 frames. The actual supplies cost for the month was $11,800. The spending variance for supplies cost in June would be closest to:

$175 U

$311 F

$311 U

$175 F

4.

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 F

$234 U

$616 U

$234 F

5.

Karmazyn Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below:

Budgeted number of patient-visits	8,700
Budgeted variable costs:
Supplies (@ $9.80 per patient-visit)	$ 85,260
Laundry (@ $9.50 per patient-visit)	82,650
Total variable cost	167,910
Budgeted fixed costs:
Wages and salaries	99,820
Occupancy costs	107,820
Total fixed cost	207,640
Total cost	$375,550

The total variable cost at the activity level of 8,800 patient-visits per month should be:

$209,970

$169,840

$167,910

$207,640

6. Cadavieco Detailing's cost formula for its materials and supplies is $1,940 per month plus $13 per vehicle. For the month of November, the company planned for activity of 89 vehicles, but the actual level of activity was 54 vehicles. The actual materials and supplies for the month was $2,310.

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

$2,642

$4,688

$3,097

$2,310

7.

Cadavieco Detailing's cost formula for its materials and supplies is $2,040 per month plus $9 per vehicle. For the month of November, the company planned for activity of 99 vehicles, but the actual level of activity was 59 vehicles. The actual materials and supplies for the month was $2,890.

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

$2,571

$2,931

$2,890

$1,706

8.

Cadavieco Detailing's cost formula for its materials and supplies is $1,880 per month plus $7 per vehicle. For the month of November, the company planned for activity of 83 vehicles, but the actual level of activity was 48 vehicles. The actual materials and supplies for the month was $2,350.

The activity variance for materials and supplies in November would be closest to:

$111 F

$245 F

$245 U

$111 U

9. Cadavieco Detailing's cost formula for its materials and supplies is $2,040 per month plus $9 per vehicle. For the month of November, the company planned for activity of 99 vehicles, but the actual level of activity was 59 vehicles. The actual materials and supplies for the month was $2,890.

The spending variance for materials and supplies in November would be closest to:

$319 U

$319 F

$41 U

$41 F