BUS 252Accounting Test Bank 18 Questions and Answers(2022/2023)

42. Lynne Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $480 per month plus $91 per job plus $14 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in June to be 10 jobs and 79 meals, but the actual activity was 14 jobs and 77 meals. The actual cost for catering supplies in June was $2,970. The catering supplies in the flexible budget for June would be closest to: A. $2,49 6 B. $2,97 0 C. $2,83 2 D. $3,49 4 43. Wexell Framing's cost formula for its supplies cost is $1,230 per month plus $10 per frame. For the month of October, the company planned for activity of 592 frames, but the actual level of activity was 597 frames. The actual supplies cost for the month was $7,050. The activity variance for supplies cost in October would be closest to: A. $50 F B. $50 U C. $100 F D. $100 U 44. Danoff Midwifery's cost formula for its wages and salaries is $1,540 per month plus $497 per birth. For the month of March, the company planned for activity of 112 births, but the actual level of activity was 107 births. The actual wages and salaries for the month was $56,850. The activity variance for wages and salaries in March would be closest to: A. $2,485 U B. $354 U C. $2,485 F D. $354 F 45. Mondo Snow Removal's cost formula for its vehicle operating cost is $1,060 per month plus $429 per snow-day. For the month of January, the company planned for activity of 11 snow-days, but the actual level of activity was 13 snow-days. The actual vehicle operating cost for the month was $6,310. The activity variance for vehicle operating cost in January would be closest to: A. $531 U B. $531 F C. $858 U D. $858 F 46. Dus Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $400 per month plus $89 per job plus $10 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in March to be 11 jobs and 81 meals, but the actual activity was 7 jobs and 76 meals. The actual cost for catering supplies in March was $1,810. The activity variance for catering supplies in March would be closest to: A. $406 U B. $406 F C. $379 F D. $379 U 47. Borunda 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 $37,020 per month plus $2,731 per flight plus $6 per passenger. The company expected its activity in July to be 73 flights and 253 passengers, but the actual activity was 75 flights and 251 passengers. The actual cost for plane operating costs in July was $231,770. The activity variance for plane operating costs in July would be closest to: A. $6,131 F B. $5,450 F C. $6,131 U D. $5,450 U 48. Paradiso Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,060 patient-visits and the actual level of activity was 1,050 patient-visits. The cost formula for administrative expenses is $3.00 per patientvisit plus $17,000 per month. The actual administrative expense was $19,300. In the clinic's flexible budget performance report for last month, the spending variance for administrative expenses was: A. $850 F B. $220 U C. $30 F D. $880 F