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Flexible Budget Exercises 1. Kara 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 $310 per month plus $84 per job plus $17 per meal. A typical job involves serving a number of meals to guests at a corporate funetion or at a host's home. The company expected its activity in July to be 15 jobs and 127 meals, but the actual activity was 14 jobs and 126 meals. The actual cost for catering supplies in July was $3,620. The activity variance for catering supplies in July would be closest to: A. S109 F B. S109U C. 101 F D. $101 U 2. Farver 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 $44,420 per month plus $2,008 per flight plus $1 per passenger. The company expected its activity in May to be 80 flights and 281 passengers, but the actual activity was 81 flights and 277 passengers. The actual cost for plane operating costs in May was $199,650. The spending variance for plane operating costs in May would be closest to: A. S5,691 F B. $7,695 U C. $7,695 F D. $5,691 U 3. The spending variance for manufacturing overhead in May would be closest to: A. $4,370 UB. $4,810 F C. $4,810 U D. $4,370 F 4. Cadavisso Detailing's cost formula for its materials and supplies is $1,990 per month plus S8 per vehicle. For the month of November, the company planned for activity of 92 vehicles, but the actual level of activity was 52 vehicles. The actual materials and supplies for the month was $2,440. The materials and supplies in the planning budget for November would be closest to: A.$2,726 B.$2,406 C.$4,317 D.$2,440 The materials and supplies in the flexible budget for November would be closest to A. $2,440 B. $1,541 C. $2,726 D. $2,406 The activity variance for materials and supplies in November would be closest to: A. $320 U B. $286 U C. $286 F D. $320 F The spending variance for materials and supplies in November would be closest to: A. $34 F B. $286 F C.$34 UD. $286 U