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Homework answers / question archive / Cinderella Sanitation Service cost formula for its wages and salaries is $2,500 per month plus $75 per pick-up

Cinderella Sanitation Service cost formula for its wages and salaries is $2,500 per month plus $75 per pick-up

Accounting

Cinderella Sanitation Service cost formula for its wages and salaries is $2,500 per month plus $75 per pick-up. For the month of May, the company planned for activity of 300 pick-ups, but the actual level of activity was 325 pick-ups. The actual wages and salaries for the month was $28,875. The activity variance for wages and salaries in May would be closest to: Actual Cost Flex Budget Planning Budget
Q3. Cinderella Sanitation Service cost formula for its wages and salaries is $2,500 per month plus $75 per pick-up. For the month of May, the company planned for activity of 300 pick-ups, but the actual level of activity was 325 pick-ups. The actual wages and salaries for the month was $28,875. The spending variance for wages and salaries in May would be closest to: Actual Cost Flex Budget Planning Budget

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2)

  Actual Cost Flex Budget Planning Budget
Wages and salaries $28,875 (325*$75+$2,500)= $26,875 (300*$75+$2500)= $25,000

Activity variance= Flex Budget-Planning Budget

= $26,875-25000= $1,875 U

3)

  Actual Cost Flex Budget Planning Budget
Wages and salaries $28,875 (325*$75+$2500)= $26,875 (300*$75+$2,500)= $25,000

Spending variance= Actual cost-Flex Budget

= $28,875-26,875= $2,000 U

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