Thomasson Air uses two measures of activity, flights andpassengers, in the cost formulas in its budgets and performancereports. The cost formula for plane operating costs is $36,120 permonth plus $2,034 per flight plus $1 per passenger. The companyexpected its activity in April to be 72 flights and 222 passengers,but the actual activity was 71 flights and 227 passengers. Theactual cost for plane operating costs in April was $179,040. Theactivity variance for plane operating costs in April would beclosest to:
Thomasson Air uses two measures of activity, flights andpassengers, in the cost formulas in its budgets and performancereports. The cost formula for plane operating costs is $36,120 permonth plus $2,034 per flight plus $1 per passenger. The companyexpected its activity in April to be 72 flights and 222 passengers,but the actual activity was 71 flights and 227 passengers. Theactual cost for plane operating costs in April was $179,040. Theactivity variance for plane operating costs in April would beclosest to:
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#23
Teel Printing uses two measures of activity, press runs and bookset-ups, in the cost formulas in its budgets and performancereports. The cost formula for wages and salaries is $8,850 permonth plus $400 per press run plus $950 per book set-up. Thecompany expected its activity in July to be 204 press runs and 111book set-ups, but the actual activity was 201 press runs and 110book set-ups. The actual cost for wages and salaries in July was$193,780.
The activity variance for wages and salaries in July would beclosest to:
$2,120 U
$2,150 U
$2,150 F
$2,120 F
#24
Ibsen Clinic uses client-visits as its measure of activity.During December, the clinic budgeted for 3,300 client-visits, butits actual level of activity was 3,340 client-visits. The clinichas provided the following data concerning the formulas used in itsbudgeting and its actual results for December:
Data used in budgeting:
Fixed Element perMonth | Variable element per client-visit | ||||
Revenue | - | $ | 40.00 | ||
Personnel expenses | $ | 32,400 | $ | 13.40 | |
Medical supplies | 1,500 | 4.80 | |||
Occupancy expenses | 9,100 | 2.10 | |||
Administrative expenses | 6,700 | 0.40 | |||
Total expenses | $ | 49,700 | $ | 20.70 | |
Actual results for December:
Revenue | $ | 134,170 | |
Personnel expenses | $ | 80,776 | |
Medical supplies | $ | 17,302 | |
Occupancy expenses | $ | 15,754 | |
Administrative expenses | $ | 8,296 | |
The occupancy expenses in the flexible budget for December wouldbe closest to:
Garrison 16e Rechecks 2017-10-31
$16,114
$15,565
$15,945
$16,030