Question 31 (2 points) In a flexible budget, the wages and salaries costs had an unfavorable total variance and a favorable activity variance. Which of the following is true? The spending variance for wages and salaries is unfavorable. The activity level of the company was above the planned activity level. The spending variance for wages and salaries is favorable. The spending variance for total expenses is unfavorable. Question 32 (2 points) A favorable spending variance indicates that The company had higher net operating income than it planned. The company had greater sales volume than it expected. The company had a savings in an expense category that increased net operating income. The actual expense was less than the expense on the static budget. Question 33 (2 points) Saved Smith Well Servicing Company had its accountant gather the following information at the end of the period. What is the Revenue Variance for "Revenue"? Actual Results Planned $153,000 $87,000 Revenue Employee salaries and wages Servicing materials Other expenses Net Operating Income Flexible $144,000 $85,200 $22,400 $35,400 $1,000 $23,800 $35,400 $6,800 $155,000 $86,000 $23,000 $30,000 $16,000 $9,000 U $9,000 F $11,000 U $11,000 F Smith Well Servicing Company had its accountant gather the following information at the end of the period. What is the Total Variance for "Employee wages & salaries"? Flexible Actual Results Revenue Employee salaries and wages Servicing materials Planned $153,000 $87,000 $23,800 $35,400 $6,800 $144,000 $85,200 $22,400 $35,400 $1,000 $155,000 $86,000 $23,000 $30,000 $16,000 Other expenses Net Operating Income $1800 U $1000 U $1000 F $1800 F Smith LLC is an oilfield service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates used for budgeting purposes. Variable Fixed Element per Variable Element Element Per Month per Well Serviced Number of Servicing Days Revenue $1,000 $140 Employee salaries and $56,400 $900 wages Servicing materials $200 $20 Other expenses $15,400 $800 When the company prepared its planning budget at the beginning of December, it assu that 34 wells would have been serviced over 25 days. However 32 wells were actually serviced during the period over 30 days. Actual results were servicing material costs of $ 6,800. What is the spending variance for "servicing materials"? 200 U 300 F 500 F 200 F