Thomasson 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 $36,170 per month plus $2,044 per flight plus $1 per passenger. The company expected its activity in April to be 77 flights and 227 passengers, but the actual activity was 76 flights and 232 passengers. The actual cost for plane operating costs in April was $190,500. The activity variance for plane operating costs in April would be closest to:

$2,039 U

$2,039 F

$3,285 F

$3,285 U

2. Voytek Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 48,000 customers, but actually served 49,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:

	Fixed element per month			Variable element per customer
Revenue				$	3.86
Wages and salaries	$	38,200		$	1.33
Supplies	$	0		$	0.63
Insurance	$	8,700		$	0.00
Miscellaneous	$	8,200		$	0.53

Required:

Prepare the report showing the company's activity variances for October. Indicate in each case whether the variance is favorable (F) or unfavorable (U). (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Voytek Corporation Activity Variances For the Month Ended October 31

Revenue

$

(Click to select)UFNone

Expenses:

Wages and salaries

(Click to select)FUNone

Supplies

(Click to select)UNoneF

Insurance

(Click to select)NoneFU

Miscellaneous

(Click to select)NoneUF

Total expense

(Click to select)FUNone

Net operating income

$

(Click to select)NoneUF

3. During August, Diga Corporation plans to serve 35,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:

Revenue: $4.44q

Wages and salaries: $33,500 + $1.56q

Supplies: $.76q

Insurance: $15,000

Miscellaneous expense: $4,500 + $.46q

Required:

Prepare the company's planning budget for August. (Input all amounts as positive values. Omit the "$" sign in your response.)

Diga Corporation Planning Budget For the Month Ended August 31
Budgeted customers served
Revenue	$
Expenses:
Wages and salaries
Supplies
Insurance
Miscellaneous expense
Total expense
Net operating income	$