Look at Kool-Time€™s graph of actual and budgeted monthly costs in Exhibit 10-5.

1. How many pools did Kool-Time install in May?
2. How much were Kool-Time€™s actual expenses in May?
3. Using Kool-Time€™s flexible budget formula, what is the flexible budget total cost for May?
4. What is Kool-Time€™s flexible budget variance for total costs? Is the variance favourable or unfavourable in May?

Transcribed Image Text:

$120 $100 $80 Actual for June Actual for August Actual for Actual April ● / Actual for for May July E $60 S40 $20 Flexible budget total cost line Exhibit 10-4) 0 1 2 3 4 5 6 7 8 9 10 11 Number of Pools Installed (x)