Assume the following information for one of a company’s variable expenses: The amount of the expense in the planning budget is $9,000. The cost formula is $9.00 per hour. The actual level of activity is 900 hours. The spending variance is $290 unfavorable. The actual amount of the expense must be: Multiple Choice $8,390. $8,100. $8,890. $8,5

Assume the following information for one of a company’s variable expenses: The amount of the expense in the planning budget is $9,000. The cost formula is $9.00 per hour. The actual level of activity is 900 hours. The spending variance is $290 unfavorable. The actual amount of the expense must be: Multiple Choice $8,390. $8,100. $8,890. $8,5

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1CMA: Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for...

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Assume the following information for one of a company’s variable expenses: The amount of the expense in the planning budget is $9,000. The cost formula is $9.00 per hour. The actual level of activity is 900 hours. The spending variance is $230 unfavorable. The actual amount of the expense must be:
Assume the following information for one of a company’s variable expenses: The activity variance is $790 favorable. The actual amount of the expense is $8,300. The planned level of activity is 1,000 hours. The actual level of activity is 900 hours. The cost formula for this expense must be: Multiple Choice $8.20 per hour. $8.90 per hour. $7.90 per hour. $7.20 per hour.
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Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed) $ 3,000 Supplies (variable) $ 4.00q Utilities (mixed) $150 + $0.75q The company’s planned level of activity was 2,000 hours and its actual level of activity was 1,900 hours. How much utilities expense would be included in the flexible budget? $1,500 $1,675 $1,575 $1,650
Assume that the amount of one of a company's fixed expenses in its flexible budget is $46,000. The actual amount of the expense is $47,400 and the amount in the company's planning budget is $46,000. The spending variance for this expense is: Multiple Choice $0. $1,400 U. $1,400 F. $2,800 U.
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Assume that a company's planned level of activity is 1,000 hours and its actual level of activity is 1,100 hours. Based on this information, the company's activity variance for revenue will be: Multiple Choice either favorable or unfavorable depending on the cost formula. zero. unfavorable. favorable.
Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed) Supplies (variable) Utilities (mixed) $ 4.009 $150 + $0.75q The company's planned level of activity was 2,110 hours and its actual level of activity was 1,850 hours. How much supplies expense would be included in the planning budget? Multiple Choice C $7,840 $8,140 $8,340 $ 3,000 $8,440
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Assume that a company has two cost drivers-number of courses and number of students. The planned number of courses and students were 5 and 100, respectively. The actual number of courses and students were 6 and 110, respectively. One of the company's expenses is influenced by both cost drivers. Its cost formulas are $58 per course and $7 per student. The total cost included in the planning budget for this expense would be:Multiple Choice$890.$ 990.$1,090.$1,190.