ADDITIONALRQCh8 (1)

ADDITIONALRQCh8 (1) - ADDITIONAL RQ Ch8 Student: _ Spraque...

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ADDITIONAL RQ Ch8 Student: ___________________________________________________________________________ Spraque 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 $40,520 per month plus $2,733 per flight plus $11 per passenger. The company expected its activity in June to be 71 flights and 207 passengers, but the actual activity was 70 flights and 205 passengers. The actual cost for plane operating costs in June was $239,580. 1. The activity variance for plane operating costs in June would be closest to: A. $2,755 U B. $2,755 F C. $2,740 F D. $2,740 U Luc Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During February, the company budgeted for 5,000 units, but its actual level of activity was 4,950 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for February:
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2. The selling and administrative expenses in the planning budget for February would be closest to: A. $30,490 B. $30,495 C. $30,500 D. $30,190 Worden Hospital bases its budgets on patient-visits. The hospital's static budget for February appears below: 3. The total fixed cost at the activity level of 4,700 patient-visits per month should be: A. $162,620 B. $148,780 C. $93,060 D. $85,140
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Murphree Clinic uses client-visits as its measure of activity. During April, the clinic budgeted for 3,300 client- visits, but its actual level of activity was 3,350 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for April: 4. The net operating income in the flexible budget for April would be closest to: A. $20,115 B. $19,519 C. $14,425 D. $13,550
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This note was uploaded on 07/01/2011 for the course ACCT 52548 taught by Professor Charleslewis during the Spring '10 term at HCCS.

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ADDITIONALRQCh8 (1) - ADDITIONAL RQ Ch8 Student: _ Spraque...

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