TB MC Qu. 9-346 (Static) Standahl Air uses two measures ...Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The costformula for plane operating costs is $39,590 per month plus $2,649 per flight plus $4 per passenger. The company expected its activity inAugust to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers. The actual cost for plane operatingcosts in August was $255,690.The spending variance for plane operating costs in August would be closest to:Multiple Choice$2,294 UО$10,253 U

The objective of the question is to calculate the spending variance for plane operating costs in…

Answered: TB MC Qu. 9-346 (Static) Standahl Air…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Western Trucking operates a fleet of delivery trucks. The fixed expenses to operate the fleet are $79,900 in March and rose to $93,120 in April. It costs Western Trucking $0.15 per mile in variable costs. In March, the delivery trucks were driven a total of 85,000 miles, and in April, they were driven a total of 96,000 miles.
Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour $ 21,500 $ 15.00. $7.30 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Revenue Expenses: Administrative expenses $ 0.50 For example, wages and salaries should be $21,500 plus $15.00 per repair-hour. The company expected to work 3,000 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $54.00 per repair-hour. $ 2,760 $ 5,740 Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent $ 4,630 $ 3,820 Jake's Roof Repair Activity Variances For the Month Ended May 31 Administrative expenses Total expense Net operating income $…
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Boston Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Boston Railroad is a measure of railroad operating activity, termed “gross-ton miles,” which is the total number of tons multiplied by the miles moved. Transportation Costs Gross-Ton Miles January $1,776,000 560,000 February 2,700,000 1,000,000 March 1,650,000 500,000 April 1,860,000 600,000 May 1,440,000 400,000 June 1,566,000 460,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (If required, round to two decimal places.) $fill in the blank 1 per gross-ton mile Total fixed cost $fill in the blank 2
Western Trucking operates a fleet of delivery trucks. The fixed expenses to operate the fleet are $80,910 in March and rose to $93,120 in April. It costs Western Trucking $0.14 per mile in variable costs. In March, the delivery trucks were driven a total of 87,000 miles, and in April, they were driven a total of 97,000 miles. Using this information, answer the following: A. What were the total costs to operate the fleet in March and April, respectively? March April Total cost $fill in the blank 1 $fill in the blank 2 B. What were the cost per mile to operate the fleet in March and April, respectively? If required, round your answers to nearest cent. March April Cost per mile $fill in the blank 3 $fill in the blank 4
None
T3.
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