Question 9 1 pts Allied Inc. is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for October. Revenue Fixed Element Variable Element Actual per Customer Total for per Month Served October $ 4,100 $ 182,900 Employee salaries and $ 42,300 $ 1,300 $ 98,800 wages Travel expenses $ 31,500 700 $ 30,500 $ 31,900 Other expenses When the company prepared its planning budget at the beginning of October, it assumed that 39 customers would have been served. However, 44 customers were actually served during October. The spending variance for "Employee salaries and wages" for October would have been closest to: $700 F $700 U $5,800 U $5,800 F Question 8 1 pts SE 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 $56,840 per month plus $2,874 per flight plus $13 per passenger. The company expected its activity in November to be 86 flights and 255 passengers, but the actual activity was 89 flights and 257 passengers. The actual cost for plane operating costs in November was $305,100. The spending variance for plane operating costs in November would be closest to: $2,219 F $10,867 F $10,867 U $2,219 U Question 10 1 pts Kennel Apt. uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During March, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 2,040 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Revenue Fixed element per month Variable element per tenant-day $ 35.40 Wages and salaries $ 3,000 $ 6.60 Food and supplies 400 12.20 Facility expenses 9,600 2.30 Administrative expenses 7,800 0.20 Total expenses $ 20,800 $ 21.30 Actual results for March: Revenue $ 69,576 Wages and salaries $ 16,204 Food and supplies $ 25,008 Facility expenses $ 14,122 Administrative expenses $ 8,238 The revenue variance for March would be closest to: $1,224 U $1,224 F $2,640 U $2,640 F