Question
Peixoto Framing's cost formula for its supplies cost is $1,150 per month plus $14 per frame. For the month of July, the company planned for
Peixoto Framing's cost formula for its supplies cost is $1,150 per month plus $14 per frame. For the month of July, the company planned for activity of 556 frames, but the actual level of activity was 555 frames. The actual supplies cost for the month was $9,190. The supplies cost in the planning budgetfor July would be closest to:
A.$8,920
B.$9,207
C.$8,934
D.$9,190
Wexell Framing's cost formula for its supplies cost is $1,230 per month plus $10 per frame. For the
month of October, the company planned for activity of 592 frames, but the actual level of activity was
597 frames. The actual supplies cost for the month was $7,050. The activity variance for supplies
cost in October would be closest to:
A.$50 F
B.$50 U
C.$100 F
D.$100 U
Danoff Midwifery's cost formula for its wages and salaries is $1,540 per month plus $497 per birth.
For the month of March, the company planned for activity of 112 births, but the actual level of activity
was 107 births. The actual wages and salaries for the month was $56,850. The activity variance for
wages and salaries in March would be closest to:
A.$2,485 U
B.$354 U
C.$2,485 F
D.$354 F
Dus 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 $400 per month plus $89 per job plus
$10 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 March to be 11 jobs and 81 meals, but the actual
activity was 7 jobs and 76 meals. The actual cost for catering supplies in March was $1,810. The
activity variance for catering supplies in March would be closest to:
A.$406 U
B.$406 F
C.$379 F
D.$379 U
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