# Venanzi air perfomance reports | Accounting homework help

1. Venanzi 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 \$40,720 per month plus \$2,646 per flight plus \$11 per passenger. The company expected its activity in September to be 62 flights and 288 passengers, but the actual activity was 64 flights and 289 passengers. The actual cost for plane operating costs in September was \$214,430. The activity variance for plane operating costs in September would be closest to: A) \$5,303 F B) \$6,490 F C) \$6,490 U D) \$5,303 U 2. Brattain Tile Installation Corporation measures its activity in terms of square feet of tile installed. Last month, the budgeted level of activity was 1,230 square feet and the actual level of activity was 1,140 square feet. The company’s owner budgets for supply costs, a variable cost, at \$2.10 per square foot. The actual supply cost last month was \$3,260. In the company’s flexible budget performance report for last month, what would have been the spending variance for supply costs? A) \$866 U B) \$257 F C) \$677 U D) \$189 F

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