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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A startup airline company out of Denver established 5 routes to Los Angeles, Las Vegas, Phoenix, Chicago, and Dallas last year and incurred total of $4,200,000 in overhead costs. The company wants to use activity-based method to allocate the indirect cost among the routes. The cost driver is identified as available seat miles (ASM). The following table presents the revenue passenger miles (RPM) and average load factor for each route. The overhead cost allocated to Los Angeles using ASM is nearest to. Route Total RPM Average Load Factor Total ASM Chicago 450,000 75% 600,000 Dallas 574,000 82% 700,000 Los Angeles 630,000 70% 900,000 Las Vegas 595,000 85% 700,000 Phoenix 480,000 80 600,000 Total ASM 3,500,000 O $450,000 $840,000 O $720,000 O $1,080,000
! Required information [The following information applies to the questions displayed below.] Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month $ 57,000 $ 36,000 Variable Element per Customer Served $ 5,800 $ 1,800 $950 Actual Total for May $ 217,000 $ 128,100 $ 35,300 $ 34,400 When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers. Amount of employees salaries and wages included in the planning budget 11. What amount of employee salaries and wages would be included in Adger's planning budget for May?
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T3.
Crane Corporation produces and sells two products, Basic and Super. Data for activity during March are as follows: Basic Super Sales $213,000 $263,000 Contribution margin 25% 28% Total fixed costs $78,000 $78,000 Prepare a segment margin income statement. Omit the heading. Common fixed costs of $38,000 are allocated Basic and $43,000 to Super. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).) Basic Super Total $ $ $ tA
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