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QUESTION 11
Aquarium Inc uses the number of museum visits as its measure of activity. During May, the company budgeted for
4,040 museum visits, but its actual level of activity was 4,200 museum visits. Revenue is variable and is $25 per
museum visit. Actual revenue for May was $108,000. The revenue variance for May would be closest to:
A. $3,000 unfavorable
B. $3,000 favorable
C. $7,000 unfavorable
D. $7,000 favorable
12.5
QUESTION 12
Brick Inc uses the number of houses built as its measure of activity. During June, the company budgeted to build 25
houses, but its actual level of activity was 22 houses built. Material expense is a mixed cost of $20,600 per month
plus $12,000 per house built. Actual material expense for June was $286,500. The spending variance for material
expense in June would be closest to:
A. $1,900 favorable
B. $1,900 unfavorable
C. $34,100 favorable
D. $34,100 unfavorable
12.5 point
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