# Crystal corps net income net loss for the month of

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Chapter 14 / Exercise 3
Principles of Information Systems
Reynolds/Stair
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22. Crystal Corp’s net income (net loss) for the month of May under absorption costing would be:a0. \$0b0. (\$10,000)c0. (\$30,000)d0. (\$60,000)e. \$60,000
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Chapter 14 / Exercise 3
Principles of Information Systems
Reynolds/Stair
Expert Verified
Use the following information for questions 23 & 24: Bobe Air uses two measures of activity, flights and passengers, in its cost estimates. The cost formula for plane operating costs is \$45,000 fixed costs per month plus \$2,500 per flight plus \$8 per passenger. The company expected its activity in May to be 75 flights and 200 passengers, but the actual activity was 78 flights and 215 passengers. The actual cost for plane operating costs in May was \$250,000.23. The activity variance for the plane operating costs in May would be:
24. The spending variance for plane operating costs in May would be:
FIVE POINT QUESTIONS (2)25. Rocky Corp. uses a process costing system. Data concerning the Machining Department (the first processing department) for the most recent month are listed below:The ending Work in Process balance in the Machining Department is:
26. Lodi Kennels uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During June, the kennel budgeted 2,600 tenant-days, but its actual level of activity was 2,500 tenant-days. The kennel has the following data concerning its cost formulas to be used in its budgeting:Actual results for the month follow:Which Income Statement item has the largest unfavorable variance, in percentage terms, when compared to the amount expected from the flexible budget?a0. Revenueb0. Food and suppliesc. Wages and salariesd0. Utilitiese0. Advertising
TWENTY FIVE POINT QUESTION– SHOW WORK FOR PARTIAL CREDITEverest, Inc. uses a process costing system to account for its production of bicycles. The flow of production goes from Machining to Assembly and then to Finished Goods. Some operating data for the month is shown below. Provide the correct answer for the requested items._________ out of 25