Question: answer 4,5,6 4. Lisa's Restaurant has a cost with the following cost formula: $1,000 plus $5 for cach mcal served. The restaurant's static planning budget
4. Lisa's Restaurant has a cost with the following cost formula: $1,000 plus $5 for cach mcal served. The restaurant's static planning budget is based upon 2,500 meals. Its actual level of activity was 2,575 meals and the actual amount of the cost at that level of activity was $13,247. What was the amount of the cost on the static planning budget? Answer: [10 points] 5. Airborne Air uses two measures of activity, flights and passengers, in their cost formulas for budget and performance reports. The cost formula for plane operating costs is $35,760 per month; plus $3,330 per flight; plus $20 per passenger. The company expected its activity in December to be 67 flights and 274 passengers, but the actual activity was 69 flights and 280 passengers. The actual cost for plane operating costs in December was $276,735. The plane operating costs in the flexible budget for December would be: Answer: [10points) 6. Kak CPA firm measures its activity in billable hours. Last month, the planned level of activity was 800 billable hours and the actual level of activity was 935 billable hours. The cost formula for administrative expenses is $1.20 per billable hour plus $8,500 per month. The actual administrative expense was $10,042. In the fim's flexible budget performance report for last month, the spending variance for administrative expenses was: Answer: [10 points)
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