Am. 104. Katy's lawn service has created the following cost formula for its operating costs: $1,350 per month and $55 per lawn. InJune, Katy's estimated that it would service 150 lawns in July. In August, Katy's reviewed its July results. Actual costswere $10, 150 and Katy's serviced 155 lawns. What was the spending variance for July? Was it favorable or unfavorable?

Approach to solving the question:Rational Detailed explanation:Spending variance, also known as…

Answered: Katy's lawn service has created the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 8EB: Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450...

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Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2,640 per month plus $47 per boat. For the month of April, the company planned for activity of 60 boats, but the actual level of activity was 14 boats. The actual cleaning equipment and supplies for the month was $3,420. The activity variance for cleaning equipment and supplies in April would be closest to:
Dermody Snow Removal's cost formula for its vehicle operating cost is $3,060 per month plus $336 per snow-day. For the month of December, the company planned for activity of 18 snow-days, but the actual level of activity was 20 snow-days. The actual vehicle operating cost for the month was $9,385. The spending variance for vehicle operating cost in December would be closest to:
Dermody Snow Removal's cost formula for its vehicle operating cost is $2,900 per month plus $320 per snow-day. For the month of December, the company planned for activity of 15 snow-days, but the actual level of activity was 13 snow- days. The actual vehicle operating cost for the month was $7,980. The spending variance for vehicle operating cost in December would be closest to:
tour company uses two measures of activity, routes and passengers in its cost formulas used for budgeting and performance evaluation. The cost formula for tour operating costs is $56,880 per month plus $2,880 per route plus $15 per passenger. The company expected in August to perform 90 routes and serve 256 passengers, but the actual activity was 96 routes and 263 passengers. The actual tour operating costs in August was $305,100. The spending variance for tour operating costs in August would be closest to: Multiple Choice $32,205 Unfavorable $32,205 Favorable $14,820 Unfavorable $17,385 Favorable $14,820 Favorable O O O
Lesinski Snow Removal's cost formula for its vehicle operating cost is $1,770 per month plus $483 per snow-day. For the month of February, the company planned for activity of 19 snow-days, but the actual level of activity was 24 snow-days. The actual vehicle operating cost for the month was $13,070. The spending variance for vehicle operating cost in February would be closest to: Select one: a. $2,123 U b. $292 F c. $2,123 F d. $292 U
Bade Midwifery's cost formula for its wages and salaries is $1,230 per month plus $240 per birth. For the month of October, the company planned for activity of 105 births, but the actual level of activity was 101 births. The actual wages and salaries for the month was $26,470. The activity variance for wages and salaries in October would be closest to:
Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $39,590 per month plus $2,649 per flight plus $4 per passenger. The company expected its activity in August to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers. The actual cost for plane operating costs in August was $255,690. The activity variance for plane operating costs in August would be closest to: Multiple Choice $7,959 U $2,294 F $7,959 F $2,294 U
Petrus Framing's cost formula for its supplies cost is $1,790 per month plus $10 per frame. For the month of March, the company planned for activity of 619 frames, but the actual level of activity was 624 frames. The actual supplies cost for the month was $8,500. The activity variance for supplies cost in March would be closest to:
Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $39,590 per month plus $2,649 per flight plus $4 per passenger. The company expected its activity in August to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers. The actual cost for plane operating costs in August was $255,690. The spending variance for plane operating costs in August would be closest to:
Hirons Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $60,050 per month plus $3,270 per flight plus $13 per passenger. The company expected its activity in November to be 86 flights and 260 passengers, but the actual activity was 89 flights and 262 passengers. The actual cost for plane operating costs in November was $343,650. The spending variance for plane operating costs in November would be closest to:
Pittman Framing's cost formula for its supplies cost is $1,040 per month plus $14 per frame. For the month of November, the company planned for activity of 614 frames, but the actual level of activity was 604 frames. The actual supplies cost for the month was $9,200. The spending variance for supplies cost in November would be closest to:
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