Chapter 9 1. 4. 5. 6. 7. What is the key characteristic of a flexible budget? What is the primary difference between a flexible budget and a static planning budget? A flower shop's cost formula for its supplies cost is $2,000 per month plus $2 per flower arrangement sold. For the month of May, the company planned for an activity level of 300 flower arrangements, but the actual level of activity was 320 flower arrangements. The actual supplies cost for the month was 52,600. What was the supplies cost in the flexible budget for the month? Show your calculations. An urgent care clinic has established a flexible budget based on patient visits. In October, the budgeted level of activity was 2,000 patient visits and the actual level of activity was 2,100 patient visits. The cost formula for administrative expenses is $5 per patient visit plus $30,000 fixed cost per month. The actual administrative expense for October was $42,000. What was the spending variance for administrative expenses for October? Show your calculations. If actual revenue is greater than the flexible budget amount of revenue, is the variance labeled as favorable or unfavorable? If an actual cost is greater than the flexible budget amount for that cost, is the variance labeled as favorable or unfavorable? If the actual quantity of materials used in production is less than the standard quantity allowed for the actual output, is the materials quantity variance labeled as favorable or unfavorable? Which variance might be useful in evaluating the performance ofthe Purchasing Department Manager? Which variances might be useful in evaluating the performance of the Production Department Manager