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1. Lynne Catering uses two measures of activity, jobs and meals, in the cost formulas...

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Accounting

1. 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 $651 per month plus $151 per job plus $11 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 12 jobs and 111 meals, but the actual activity was 18 jobs and 107 meals. The actual cost for catering supplies in June was $4740. The catering supplies in the flexible budget for June would be closest to:

$111

$2312

$4,546

$4,627

2. 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 $38,100 per month plus $2,865 per flight plus $9 per passenger. The company expected its activity in July to be 115 flights and 341 passengers, but the actual activity was 121 flights and 335 passengers. The actual cost for plane operating costs in July was $364,420. The activity variance for plane operating costs in July would be closest to:

$6,224 F

$17,136 F

$6,224 U

$17,136 U

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