10 Flexible BUdgets & Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis
LO4: Flexible budget performance report
LO3: Revenue and spending variances
LO5: More than one cost driver
LO1: Prepare a flexible budget
Professional Exam Adapted
LO2: Activity variances
LO6: Common errors
Difficulty
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Question Type T/F T/F T/F T/F T/F T/F T/F T/F T/F T/F T/F T/F T/F T/F T/F Conceptual M/C
ID 2/e: 9-2 5/e: 10-6 11/11/2007 A1 11/11/2007 A9 11/11/2007 A12 11/11/2007 A17 11/11/2007 A22 11/11/2007 A27 11/11/2007 A33 11/11/2007 A38 11/11/2007 A42 11/11/2007 A46 11/11/2007 A4 11/11/2007 A51 11/11/2007 A55
E E E M M M M E M E E E M E M E
x x x x x x x x x x x x x x x x CMA
Origin Authors Authors E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. CMA
CMA/CPA origin
3/e: 10-17
10-1
17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Conceptual M/C Conceptual M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C
E E E E E E E E E E E E E E E
x x x x x x x x x x x x x x x x
CIMA
CIMA, Nov 1996, Stage 2, Operational Cost Accounting , Q1.3 EN, 11/11/2007, A4 5/3/2003 Single MC A3 5/3/2003 Single MC B3 9/22/2004 Single MC AA3 9/22/2004 Single MC AB3 11/17/2007 Single MC AA1 11/17/2007 Single MC BA1 11/17/2007 Single MC AB1 11/17/2007 Single MC BB1 11/17/2007 Single MC CA1 11/17/2007 Single MC CB1 11/17/2007 Single MC FA1 11/17/2007 Single MC FB1 11/17/2007 Single
CIMA E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N.
CIMA, Nov 1996, Stage 2, Operational Cost Accounting , Q1.3
10-2

MC EC1 11/17/2007 Single MC FC1 11/17/2007 Single MC CA1 11/17/2007 Single MC BC1 11/17/2007 Single MC CC1 11/17/2007 Single MC ED1 11/17/2007 Single MC FD1 5/4/2003 Single MC C3 5/4/2003 Single MC D3 5/4/2003 Single MC E3 5/4/2003 Single MC F3 5/4/2003 Single MC G3 11/17/2007 Single MC DA1 11/17/2007 Single MC BD1 11/17/2007 Single MC CD1 11/17/2007 Single MC EA1 11/17/2007 Single MC EB1 11/17/2007 MC DA1 11/17/2007 MC DB1 11/17/2007 MC DC1
32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 101 102 103 48-51 52-55 56-59
M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C Multipart M/C Multipart M/C Multipart M/C
E E E E E E M E E H H E E E E E E E E x x x
x x x x x x x x x x x x x x
E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N.
x x
x x x x x x x x
10-3

104 105 106 107 108 109 1010 1011 1012 1013 1014 1015 1016 1017 1018 1019 1020 1021 1022 1060-63 64-66 67-69 70-72 73-75 76-78 79-81 82-85 86-89 90-93 94-98 99102 103106 107110 111114 115119 120123 124127 128131 132Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C E M E M E M E M M M M M M M M M M M M M x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x 11/17/2007 MC DD1 11/16/2007 MC AG1 11/16/2007 MC AH1 11/16/2007 MC BG1 11/16/2007 MC BH1 11/17/2007 MC CG1 11/17/2007 MC CH1 11/16/2007 MC AI1 11/16/2007 MC BI1 11/17/2007 MC CI1 11/16/2007 MC AJ1 11/16/2007 MC AK1 11/16/2007 MC AL1 11/16/2007 MC AM1 11/16/2007 MC AN1 11/16/2007 MC BJ1 11/16/2007 MC BK1 11/16/2007 MC BL1 11/16/2007 MC BM1 11/16/2007 MC E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N.
10-4

23 1024 1025 1026 1027 1028 1029 1030 1031 1032 1033 1034 1035 1036 1037 1038 1039 1040 1041 1042 135 136140 141144 145148 149152 153156 157159 160162 163165 166168 169171 172174 175177 178180 181183 184186 187189 190192 193195 196198 BN1 Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C M M M M M E E M E M E M E M E M E E E x x x x x x x x x x x x x x x x x x x x x x x x 11/17/2007 MC CJ1 11/17/2007 MC CK1 11/17/2007 MC CL1 11/17/2007 MC CM1 11/17/2007 MC CN1 9/22/2004 Multi MC A3 9/22/2004 Multi MC B3 11/15/2007 MC AA1 11/15/2007 MC AB1 11/15/2007 MC AC1 11/15/2007 MC AD1 11/15/2007 MC AE1 11/15/2007 MC AF1 11/16/2007 MC BA1 11/16/2007 MC BB1 11/16/2007 MC BC1 11/16/2007 MC BD1 11/16/2007 MC BE1 11/16/2007 MC BF1 E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N.
10-5

1043 1044 1045 1046 1047 1048 1049 1050 1051 1052 1053 199201 202204 205207 208210 211213 214216 217219 220222 223225 226229 230233 234 235 236 237 238 239 240 241 242 Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Problem Problem Problem Problem Problem Problem Problem Problem Problem M E M E M E E E E E E M E E E M E E E M x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x 11/17/2007 MC CA1 11/17/2007 MC CB1 11/17/2007 MC CC1 11/17/2007 MC CD1 11/17/2007 MC CE1 11/17/2007 MC CF1 9/22/2004 Multi MC C3 9/22/2004 Multi MC D3 9/22/2004 Multi MC E3 11/17/2007 Multi MC EA1 11/17/2007 Multi MC EB1 11/12/2007 Problem AG1 11/12/2007 Problem AH1 11/12/2007 Problem AI1 11/12/2007 Problem AJ1 11/12/2007 Problem BG1 11/12/2007 Problem BH1 11/12/2007 Problem BI1 11/13/2007 Problem BJ1 11/13/2007 E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N.
10-6

Problem CC1 11/14/2007 Problem CD1 11/14/2007 Problem DC1 11/14/2007 Problem DD1 11/12/2007 Problem AK1 11/12/2007 Problem AL1 11/12/2007 Problem AM1 11/13/2007 Problem BK1 11/13/2007 Problem BL1 11/13/2007 Problem BM1 11/14/2007 Problem CE1 11/14/2007 Problem DE1 11/12/2007 Problem AQ1 11/13/2007 Problem BQ1 11/12/2007 Problem AN1 11/12/2007 Problem AO1 11/12/2007 Problem AP1 11/13/2007 Problem BN1 11/13/2007 Problem BO1 11/13/2007
243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261
Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem
E M E M M E M M E E E M M M M M M M M
x x x x x x x x x x x x x x x x x x x
x x x x x x x x x x x x x x x x x x x x x
10-7

Problem BP1 11/14/2007 Problem CF1 11/14/2007 Problem DF1 9/22/2004 Problem A3 9/22/2004 Problem B3 11/12/2007 Problem AA1 11/12/2007 Problem AB1 11/12/2007 Problem AC1 11/12/2007 Problem AD1 11/12/2007 Problem AE1 11/12/2007 Problem AF1 11/12/2007 Problem BA1 11/12/2007 Problem BB1 11/12/2007 Problem BC1 11/12/2007 Problem BD1 11/12/2007 Problem BE1 11/12/2007 Problem BF1 11/13/2007 Problem CA1 11/13/2007 Problem CB1 11/14/2007
262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280
Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem
E E E E E E E E E E E E E E E E E E E
x x x x x x x x x x x x x x x x x x x
x x
10-8

Problem DA1 11/14/2007 Problem DB1 11/14/2007 Problem EC1 11/14/2007 Problem ED1 11/14/2007 Problem FC1 11/14/2007 Problem FD1 11/14/2007 Problem EE1 11/14/2007 Problem FE1 11/14/2007 Problem EF1 11/14/2007 Problem FF1 11/14/2007 Problem FG1 11/14/2007 Problem EA1 11/14/2007 Problem EB1 11/14/2007 Problem FA1 11/14/2007 Problem FB1
281 282 283 284 285 286 287 288 289 290 291 292 293 294
Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem Problem
E M H M H H H H H H M M M M
x x x x x x x x x x x x x x x x x x x x x x x
E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N.
10-9

True / False Questions 1. The main difference between a flexible budget and a static budget is that a flexible budget does not contain fixed costs. True False
2. A problem with directly comparing a static planning budget to actual costs is that this comparison fails to distinguish between differences in costs that are due to changes in activity and differences that are due to how well costs were controlled. True False
3. A planning budget is prepared before the period begins and is valid for only the planned level of activity. True False
4. A flexible budget is an estimate of what revenues and costs should have been, given the level of activity that had been planned for the period. True False
5. An unfavorable activity variance for a cost indicates that spending was higher than it should have been for the actual level of activity for the period. True False
6. The activity variance for revenue is unfavorable if the actual revenue for the period is less than the revenue in the static planning budget. True False
10-10

7. The revenue and spending variances are the differences between the static planning budget and the flexible budget. True False
8. A revenue variance is unfavorable if the actual revenue is less than what the revenue should have been for the actual level of activity for the period. True False
9. When the activity measure is the number of units sold, the revenue variance is unfavorable if the average actual selling price is less than expected. True False
10. A favorable spending variance occurs when the actual cost is less than the amount of that cost in the flexible budget. True False
11. A flexible budget performance report should contain fixed as well as variable and mixed costs. True False
12. It may be easier to control fixed costs than variable costs. True False
13. A static planning budget is suitable for planning and for evaluating how well costs are controlled. True False
10-11

14. If the actual level of activity is 4% less than planned, then the costs in the static budget should be reduced by 4% before comparing them to actual costs. True False
15. If the actual level of activity is 4% more than planned, then the fixed costs in the static budget should be increased by 4% before comparing them to actual costs. True False
Multiple Choice Questions 16. A flexible budget: A. classifies budget requests by activity and estimates the benefits arising from each activity. B. presents a statement of expectations for a period of time but does not present a firm commitment. C. presents the plan for only one level of activity and does not adjust to changes in the level of activity. D. presents the plan for a range of activity so that the plan can be adjusted for changes in activity levels.
17. A flexible budget is a budget that: A. is updated with actual costs as they occur during the period. B. is updated to reflect the actual level of activity during the period. C. is prepared using a computer spreadsheet application. D. contains only variable production costs.
18. Which of the following comparisons best isolates the impact that changes in prices of inputs and outputs have on performance? A. static planning budget and flexible budget B. static planning budget and actual results C. flexible budget and actual results D. master budget and static planning budget
10-12

19. Marchi Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below:
The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 70 guests? A. $42,460.00 B. $6,620.00 C. $7,086.15 D. $6,580.00
10-13

20. Barringer Manufacturing Corporation has prepared the following overhead budget for next month.
The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 7,900 machine-hours rather than 7,800 machine-hours? A. $110,710.00 B. $109,620.00 C. $110,868.00 D. $111,025.38
10-14

21. Placek Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below:
The total overhead cost at an activity level of 7,700 patient-visits per month should be: A. $129,550 B. $121,720 C. $129,100 D. $137,830
22. Dike Hotel bases its budgets on guest-days. The hotel's static budget for June appears below:
The total overhead cost at an activity level of 8,400 guest-days per month should be: A. $159,440 B. $149,650 C. $160,430 D. $172,200
10-15

23. Blackwelder Snow Removal's cost formula for its vehicle operating cost is $1,240 per month plus $348 per snow-day. For the month of December, the company planned for activity of 12 snow-days, but the actual level of activity was 14 snow-days. The actual vehicle operating cost for the month was $6,330. The vehicle operating cost in the planning budget for December would be closest to: A. $5,426 B. $6,112 C. $5,416 D. $6,330
24. Ofarrell Snow Removal's cost formula for its vehicle operating cost is $1,840 per month plus $377 per snow-day. For the month of November, the company planned for activity of 14 snow-days, but the actual level of activity was 19 snow-days. The actual vehicle operating cost for the month was $9,280. The vehicle operating cost in the flexible budget for November would be closest to: A. $9,003 B. $7,118 C. $9,280 D. $9,660
25. Guilbault Midwifery's cost formula for its wages and salaries is $2,340 per month plus $154 per birth. For the month of June, the company planned for activity of 115 births, but the actual level of activity was 112 births. The actual wages and salaries for the month was $19,530. The wages and salaries in the planning budget for June would be closest to: A. $19,530 B. $19,588 C. $20,053 D. $20,050
10-16

26. Dewberry Midwifery's cost formula for its wages and salaries is $1,960 per month plus $429 per birth. For the month of December, the company planned for activity of 128 births, but the actual level of activity was 130 births. The actual wages and salaries for the month was $56,020. The wages and salaries in the flexible budget for December would be closest to: A. $57,761 B. $57,730 C. $56,020 D. $56,872
27. Entler Framing's cost formula for its supplies cost is $2,250 per month plus $16 per frame. For the month of June, the company planned for activity of 502 frames, but the actual level of activity was 497 frames. The actual supplies cost for the month was $10,580. The supplies cost in the planning budget for June would be closest to: A. $10,580 B. $10,282 C. $10,686 D. $10,202
28. Rising Framing's cost formula for its supplies cost is $2,210 per month plus $10 per frame. For the month of January, the company planned for activity of 710 frames, but the actual level of activity was 705 frames. The actual supplies cost for the month was $9,500. The supplies cost in the flexible budget for January would be closest to: A. $9,260 B. $9,244 C. $9,500 D. $9,310
10-17

29. Naval Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $430 per month plus $99 per job plus $10 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in March to be 12 jobs and 126 meals, but the actual activity was 9 jobs and 124 meals. The actual cost for catering supplies in March was $2,550. The catering supplies in the planning budget for March would be closest to: A. $3,400 B. $2,561 C. $2,550 D. $2,878
30. Johannsen Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $310 per month plus $103 per job plus $23 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in February to be 28 jobs and 187 meals, but the actual activity was 26 jobs and 192 meals. The actual cost for catering supplies in February was $7,620. The catering supplies in the flexible budget for February would be closest to: A. $7,495 B. $7,404 C. $7,620 D. $6,960
31. 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. $6,490 U B. $5,303 F C. $6,490 F D. $5,303 U
10-18

32. Kimbril Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $530 per month plus $91 per job plus $12 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in January to be 27 jobs and 174 meals, but the actual activity was 31 jobs and 173 meals. The actual cost for catering supplies in January was $5,330. The activity variance for catering supplies in January would be closest to: A. $255 F B. $255 U C. $352 F D. $352 U
33. Portsche Snow Removal's cost formula for its vehicle operating cost is $2,310 per month plus $317 per snow-day. For the month of November, 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 $8,730. The activity variance for vehicle operating cost in November would be closest to: A. $714 U B. $714 F C. $634 F D. $634 U
34. Reuer Midwifery's cost formula for its wages and salaries is $2,900 per month plus $475 per birth. For the month of March, the company planned for activity of 116 births, but the actual level of activity was 117 births. The actual wages and salaries for the month was $56,270. The activity variance for wages and salaries in March would be closest to: A. $1,730 U B. $475 F C. $475 U D. $1,730 F
10-19

35. Embertson Framing's cost formula for its supplies cost is $1,350 per month plus $16 per frame. For the month of June, the company planned for activity of 816 frames, but the actual level of activity was 812 frames. The actual supplies cost for the month was $14,680. The activity variance for supplies cost in June would be closest to: A. $64 U B. $274 U C. $64 F D. $274 F
36. Lapinsky 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 $31,400 per month plus $2,148 per flight plus $7 per passenger. The company expected its activity in April to be 89 flights and 261 passengers, but the actual activity was 84 flights and 260 passengers. The actual cost for plane operating costs in April was $204,810. The spending variance for plane operating costs in April would be closest to: A. $8,842 U B. $19,589 F C. $19,589 U D. $8,842 F
37. Posson Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $210 per month plus $96 per job plus $20 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in March to be 20 jobs and 162 meals, but the actual activity was 17 jobs and 164 meals. The actual cost for catering supplies in March was $4,990. The spending variance for catering supplies in March would be closest to: A. $380 F B. $132 U C. $132 F D. $380 U
10-20

38. Dunklin Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,620 patient-visits and the actual level of activity was 1,540 patient-visits. The cost formula for administrative expenses is $3.20 per patient-visit plus $14,300 per month. The actual administrative expense was $21,050. In the clinic's flexible budget performance report for last month, the spending variance for administrative expenses was: A. $118 F B. $256 F C. $1,566 U D. $1,822 U
39. 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. $257 F B. $866 U C. $677 U D. $189 F
40. Cahalane Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of activity was 11,600 skeins and the actual level of activity was 12,000 skeins. The company's owner budgets for dye costs, a variable cost, at $0.31 per skein. The actual dye cost last month was $3,540. In the company's flexible budget performance report for last month, what would have been the spending variance for dye costs? A. $118 U B. $124 U C. $56 F D. $180 F
10-21

41. Gladstone Footwear Corporation's flexible budget cost formula for supplies, a variable cost, is $2.83 per unit of output. The company's flexible budget performance report for last month showed a $9,555 unfavorable spending variance for supplies. During that month, 19,500 units were produced. Budgeted activity for the month had been 19,300 units. The actual cost per unit for indirect materials must have been closest to: A. $3.32 B. $3.81 C. $2.83 D. $3.85
42. Velten Corporation's flexible budget performance report for last month shows that actual indirect materials cost, a variable cost, was $45,198 and that the spending variance for indirect materials cost was $9,114 favorable. During that month, the company worked 18,600 machinehours. Budgeted activity for the month had been 19,000 machine-hours. The cost formula per machine-hour for indirect materials cost must have been closest to: A. $1.90 B. $2.86 C. $1.94 D. $2.92
43. 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: A. $2,123 U B. $292 F C. $2,123 F D. $292 U
10-22

44. Harville Midwifery's cost formula for its wages and salaries is $1,610 per month plus $199 per birth. For the month of March, the company planned for activity of 118 births, but the actual level of activity was 122 births. The actual wages and salaries for the month was $25,430. The spending variance for wages and salaries in March would be closest to: A. $458 F B. $338 U C. $458 U D. $338 F
45. Olivier Framing's cost formula for its supplies cost is $2,870 per month plus $16 per frame. For the month of January, the company planned for activity of 533 frames, but the actual level of activity was 534 frames. The actual supplies cost for the month was $11,080. The spending variance for supplies cost in January would be closest to: A. $334 U B. $334 F C. $318 U D. $318 F
46. Elizarraras 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 $39,820 per month plus $2,938 per flight plus $8 per passenger. The company expected its activity in June to be 64 flights and 229 passengers, but the actual activity was 66 flights and 225 passengers. The actual cost for plane operating costs in June was $234,570. The plane operating costs in the planning budget for June would be closest to: A. $229,684 B. $227,462 C. $234,570 D. $235,528
10-23

47. Niforos 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 $41,380 per month plus $2,282 per flight plus $14 per passenger. The company expected its activity in August to be 77 flights and 264 passengers, but the actual activity was 78 flights and 261 passengers. The actual cost for plane operating costs in August was $216,740. The plane operating costs in the flexible budget for August would be closest to: A. $220,790 B. $223,030 C. $223,657 D. $216,740
Pollica Corporation's cost formula for its selling and administrative expense is $11,400 per month plus $94 per unit. For the month of March, the company planned for activity of 5,700 units, but the actual level of activity was 5,660 units. The actual selling and administrative expense for the month was $522,860.
48. The selling and administrative expense in the planning budget for March would be closest to: A. $522,860 B. $547,200 C. $543,440 D. $526,555
49. The selling and administrative expense in the flexible budget for March would be closest to: A. $547,200 B. $522,860 C. $543,360 D. $543,440
10-24

50. The activity variance for selling and administrative expense in March would be closest to: A. $24,340 F B. $24,340 U C. $3,760 U D. $3,760 F
51. The spending variance for selling and administrative expense in March would be closest to: A. $20,580 F B. $24,340 U C. $24,340 F D. $20,580 U
Kuczenski Corporation's cost formula for its manufacturing overhead is $45,700 per month plus $53 per machine-hour. For the month of March, the company planned for activity of 6,200 machine-hours, but the actual level of activity was 6,150 machine-hours. The actual manufacturing overhead for the month was $373,630.
52. The manufacturing overhead in the planning budget for March would be closest to: A. $373,630 B. $371,650 C. $376,668 D. $374,300
53. The manufacturing overhead in the flexible budget for March would be closest to: A. $371,650 B. $371,281 C. $373,630 D. $374,300
10-25

54. The activity variance for manufacturing overhead in March would be closest to: A. $670 U B. $670 F C. $2,650 F D. $2,650 U
55. The spending variance for manufacturing overhead in March would be closest to: A. $670 F B. $1,980 U C. $1,980 F D. $670 U
Kaaihue Detailing's cost formula for its materials and supplies is $2,750 per month plus $17 per vehicle. For the month of April, the company planned for activity of 95 vehicles, but the actual level of activity was 135 vehicles. The actual materials and supplies for the month was $4,850.
56. The materials and supplies in the planning budget for April would be closest to: A. $4,850 B. $5,045 C. $3,413 D. $4,365
57. The materials and supplies in the flexible budget for April would be closest to: A. $6,203 B. $4,850 C. $4,365 D. $5,045
10-26

58. The activity variance for materials and supplies in April would be closest to: A. $680 U B. $485 F C. $680 F D. $485 U
59. The spending variance for materials and supplies in April would be closest to: A. $195 F B. $485 F C. $195 U D. $485 U
Deleston Boat Wash's cost formula for its cleaning equipment and supplies is $2,150 per month plus $21 per boat. For the month of September, the company planned for activity of 79 boats, but the actual level of activity was 39 boats. The actual cleaning equipment and supplies for the month was $3,110.
60. The cleaning equipment and supplies in the planning budget for September would be closest to: A. $3,110 B. $6,300 C. $2,969 D. $3,809
61. The cleaning equipment and supplies in the flexible budget for September would be closest to: A. $1,880 B. $3,110 C. $3,809 D. $2,969
10-27

62. The activity variance for cleaning equipment and supplies in September would be closest to: A. $840 F B. $699 F C. $699 U D. $840 U
63. The spending variance for cleaning equipment and supplies in September would be closest to: A. $699 F B. $699 U C. $141 F D. $141 U
Werber Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,700 client-visits, but its actual level of activity was 2,730 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:
10-28

64. The activity variance for personnel expenses in January would be closest to: A. $661 U B. $261 U C. $261 F D. $661 F
65. The activity variance for administrative expenses in January would be closest to: A. $12 F B. $8 F C. $12 U D. $8 U
66. The activity variance for net operating income in January would be closest to: A. $2,019 U B. $2,019 F C. $489 F D. $489 U
10-29

Feiner Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,220 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:
67. The activity variance for personnel expenses in December would be closest to: A. $4,024 F B. $466 F C. $466 U D. $4,024 U
68. The activity variance for administrative expenses in December would be closest to: A. $8 F B. $162 F C. $162 U D. $8 U
69. The activity variance for net operating income in December would be closest to: A. $690 U B. $9,670 U C. $690 F D. $9,670 F
10-30

Grundhoefer Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During April, the kennel budgeted for 2,000 tenantdays, but its actual level of activity was 1,990 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for April:
70. The activity variance for wages and salaries in April would be closest to: A. $66 F B. $564 U C. $564 F D. $66 U
71. The activity variance for administrative expenses in April would be closest to: A. $1 F B. $79 F C. $79 U D. $1 U
10-31

72. The activity variance for net operating income in April would be closest to: A. $141 U B. $2,651 U C. $2,651 F D. $141 F
Gorley Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennel budgeted for 3,900 tenantdays, but its actual level of activity was 3,940 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
73. The activity variance for wages and salaries in February would be closest to: A. $1,152 U B. $1,152 F C. $292 U D. $292 F
74. The activity variance for administrative expenses in February would be closest to: A. $18 U B. $12 U C. $18 F D. $12 F
10-32

75. The activity variance for net operating income in February would be closest to: A. $368 F B. $368 U C. $632 F D. $632 U
Enriques Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During February, the company budgeted for 5,000 units, but its actual level of activity was 4,990 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for February:
76. The activity variance for direct labor in February would be closest to: A. $61 U B. $1,081 U C. $61 F D. $1,081 F
10-33

77. The activity variance for selling and administrative expenses in February would be closest to: A. $1,308 F B. $1,308 U C. $2 U D. $2 F
78. The activity variance for net operating income in February would be closest to: A. $2,716 F B. $2,716 U C. $176 U D. $176 F
Palczewski Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During December, the company budgeted for 5,000 units, but its actual level of activity was 4,980 units. The company has provided the following data concerning the formulas to be used in its budgeting:
79. The activity variance for direct labor in December would be closest to: A. $180 U B. $70 F C. $70 U D. $180 F
10-34

80. The activity variance for selling and administrative expenses in December would be closest to: A. $14 U B. $14 F C. $1,206 F D. $1,206 U
81. The activity variance for net operating income in December would be closest to: A. $2,372 U B. $328 F C. $2,372 F D. $328 U
Burget Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,110 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July:
10-35

82. The revenue variance for July would be closest to: A. $2,581 F B. $2,110 U C. $2,110 F D. $2,581 U
83. The spending variance for medical supplies in July would be closest to: A. $580 U B. $645 U C. $645 F D. $580 F
84. The spending variance for occupancy expenses in July would be closest to: A. $265 F B. $280 U C. $280 F D. $265 U
85. The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for July would be closest to: A. $4,508 F B. $4,290 U C. $4,290 F D. $4,508 U
10-36

Razor Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During November, the kennel budgeted for 3,000 tenantdays, but its actual level of activity was 3,010 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:
86. The revenue variance for November would be closest to: A. $1,607 U B. $1,910 U C. $1,607 F D. $1,910 F
87. The spending variance for expendables in November would be closest to: A. $240 F B. $354 F C. $240 U D. $354 U
10-37

88. The spending variance for facility expenses in November would be closest to: A. $416 U B. $416 F C. $390 F D. $390 U
89. The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for November would be closest to: A. $3,520 F B. $3,428 U C. $3,520 U D. $3,428 F
Vandall Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During April, the company budgeted for 7,300 units, but its actual level of activity was 7,340 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April:
10-38

90. The revenue variance for April would be closest to: A. $4,274 F B. $5,690 F C. $5,690 U D. $4,274 U
91. The spending variance for direct materials in April would be closest to: A. $210 U B. $210 F C. $426 U D. $426 F
92. The spending variance for manufacturing overhead in April would be closest to: A. $1,600 U B. $1,648 F C. $1,600 F D. $1,648 U
93. The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for April would be closest to: A. $6,144 F B. $6,740 U C. $6,740 F D. $6,144 U
10-39

Moorhouse Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,690 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:
94. The personnel expenses in the planning budget for December would be closest to: A. $51,009 B. $51,147 C. $53,370 D. $53,299
95. The medical supplies in the flexible budget for December would be closest to: A. $18,150 B. $17,472 C. $17,378 D. $18,105
10-40

96. The activity variance for personnel expenses in December would be closest to: A. $2,361 U B. $71 U C. $71 F D. $2,361 F
97. The revenue variance for December would be closest to: A. $3,680 U B. $3,429 F C. $3,429 U D. $3,680 F
98. The spending variance for medical supplies in December would be closest to: A. $680 F B. $680 U C. $725 U D. $725 F
10-41

Cotty Clinic uses client-visits as its measure of activity. During March, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 2,970 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for March:
99. The administrative expenses in the planning budget for March would be closest to: A. $6,288 B. $6,300 C. $6,418 D. $6,483
100. The occupancy expenses in the flexible budget for March would be closest to: A. $13,400 B. $12,770 C. $13,349 D. $13,029
10-42

101. The activity variance for administrative expenses in March would be closest to: A. $118 U B. $12 F C. $118 F D. $12 U
102. The spending variance for medical supplies in March would be closest to: A. $1,050 U B. $1,050 F C. $1,263 F D. $1,263 U
Murphree Clinic uses client-visits as its measure of activity. During April, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,350 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for April:
10-43

103. The net operating income in the planning budget for April would be closest to: A. $14,425 B. $19,519 C. $13,550 D. $20,115
104. The net operating income in the flexible budget for April would be closest to: A. $20,115 B. $19,519 C. $14,425 D. $13,550
105. The activity variance for net operating income in April would be closest to: A. $875 F B. $6,265 F C. $875 U D. $6,265 U
106. The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for April would be closest to: A. $5,390 F B. $6,265 U C. $5,390 U D. $6,265 F
10-44

Henkel Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,600 client-visits, but its actual level of activity was 3,550 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November:
107. The personnel expenses in the planning budget for November would be closest to: A. $74,120 B. $71,432 C. $70,440 D. $74,640
108. The occupancy expenses in the flexible budget for November would be closest to: A. $14,422 B. $14,831 C. $15,325 D. $15,400
10-45

109. The activity variance for administrative expenses in November would be closest to: A. $215 U B. $215 F C. $5 F D. $5 U
110. The spending variance for occupancy expenses in November would be closest to: A. $775 U B. $700 F C. $775 F D. $700 U
Hoeper Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,600 client-visits, but its actual level of activity was 2,570 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:
10-46

111. The administrative expenses in the planning budget for January would be closest to: A. $5,047 B. $4,960 C. $5,106 D. $4,957
112. The medical supplies in the flexible budget for January would be closest to: A. $19,733 B. $18,932 C. $19,940 D. $19,377
113. The activity variance for personnel expenses in January would be closest to: A. $1,416 U B. $486 F C. $1,416 F D. $486 U
114. The spending variance for medical supplies in January would be closest to: A. $787 F B. $787 U C. $580 F D. $580 U
10-47

Legard Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During January, the kennel budgeted for 2,600 tenantdays, but its actual level of activity was 2,620 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January:
115. The wages and salaries in the planning budget for January would be closest to: A. $24,040 B. $23,755 C. $23,938 D. $24,198
116. The expendables in the flexible budget for January would be closest to: A. $35,946 B. $36,704 C. $35,680 D. $37,271
10-48

117. The activity variance for wages and salaries in January would be closest to: A. $158 F B. $158 U C. $102 U D. $102 F
118. The revenue variance for January would be closest to: A. $750 U B. $40 U C. $40 F D. $750 F
119. The spending variance for expendables in January would be closest to: A. $1,040 F B. $1,306 F C. $1,040 U D. $1,306 U
10-49

Drabant Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennel budgeted for 2,000 tenantdays, but its actual level of activity was 2,040 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:
120. The administrative expenses in the planning budget for February would be closest to: A. $7,500 B. $7,252 C. $7,110 D. $7,512
121. The facility expenses in the flexible budget for February would be closest to: A. $13,700 B. $13,401 C. $13,788 D. $12,880
10-50

122. The activity variance for administrative expenses in February would be closest to: A. $248 U B. $248 F C. $12 U D. $12 F
123. The spending variance for expendables in February would be closest to: A. $836 F B. $1,360 F C. $836 U D. $1,360 U
Tosta Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During May, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,050 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:
10-51

124. The net operating income in the planning budget for May would be closest to: A. $9,140 B. $11,626 C. $12,200 D. $8,420
125. The net operating income in the flexible budget for May would be closest to: A. $9,140 B. $8,420 C. $11,626 D. $12,200
126. The activity variance for net operating income in May would be closest to: A. $2,770 U B. $720 U C. $720 F D. $2,770 F
127. The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for May would be closest to: A. $3,490 F B. $2,770 F C. $3,490 U D. $2,770 U
10-52

Stent Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 2,950 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:
128. The wages and salaries in the planning budget for February would be closest to: A. $22,670 B. $24,183 C. $23,780 D. $23,000
10-53

131. The spending variance for facility expenses in February would be closest to: A. $130 U B. $130 F C. $5 U D. $5 F
Rippelmeyer Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During June, the kennel budgeted for 3,600 tenantdays, but its actual level of activity was 3,550 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June:
10-54

132. The administrative expenses in the planning budget for June would be closest to: A. $7,996 B. $7,885 C. $7,555 D. $7,560
133. The expendables in the flexible budget for June would be closest to: A. $33,666 B. $34,270 C. $34,740 D. $34,621
134. The activity variance for wages and salaries in June would be closest to: A. $310 F B. $110 F C. $310 U D. $110 U
135. The spending variance for expendables in June would be closest to: A. $130 F B. $600 U C. $130 U D. $600 F
10-55

Baugus Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 6,900 units, but its actual level of activity was 6,950 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August:
136. The direct labor in the planning budget for August would be closest to: A. $27,760 B. $29,190 C. $27,560 D. $28,980
137. The direct materials in the flexible budget for August would be closest to: A. $127,650 B. $128,575 C. $127,581 D. $129,436
10-56

138. The activity variance for direct labor in August would be closest to: A. $1,220 F B. $210 U C. $210 F D. $1,220 U
139. The revenue variance for August would be closest to: A. $1,450 F B. $1,450 U C. $430 F D. $430 U
140. The spending variance for direct materials in August would be closest to: A. $70 F B. $855 U C. $70 U D. $855 F
10-57

Lampert Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During March, the company budgeted for 6,100 units, but its actual level of activity was 6,060 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for March:
141. The selling and administrative expenses in the planning budget for March would be closest to: A. $26,560 B. $27,647 C. $27,466 D. $26,536
142. The manufacturing overhead in the flexible budget for March would be closest to: A. $48,822 B. $51,384 C. $51,440 D. $49,468
10-58

143. The activity variance for selling and administrative expenses in March would be closest to: A. $906 U B. $906 F C. $24 U D. $24 F
144. The spending variance for direct materials in March would be closest to: A. $900 F B. $900 U C. $1,376 U D. $1,376 F
Woofter Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 7,600 units, but its actual level of activity was 7,560 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:
10-59

145. The net operating income in the planning budget for January would be closest to: A. $16,410 B. $16,238 C. $28,604 D. $29,140
146. The net operating income in the flexible budget for January would be closest to: A. $28,604 B. $16,238 C. $16,410 D. $29,140
147. The activity variance for net operating income in January would be closest to: A. $12,816 F B. $12,816 U C. $536 F D. $536 U
148. The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for January would be closest to: A. $12,816 F B. $12,280 U C. $12,816 U D. $12,280 F
10-60

Buffaloe Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 5,200 units, but its actual level of activity was 5,250 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August:
149. The direct labor in the planning budget for August would be closest to: A. $40,040 B. $41,015 C. $40,425 D. $40,624
150. The manufacturing overhead in the flexible budget for August would be closest to: A. $53,919 B. $55,525 C. $52,896 D. $55,460
10-61

151. The activity variance for selling and administrative expenses in August would be closest to: A. $690 F B. $690 U C. $20 F D. $20 U
152. The spending variance for manufacturing overhead in August would be closest to: A. $2,055 F B. $2,055 U C. $2,120 U D. $2,120 F
Luc Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During February, the company budgeted for 5,000 units, but its actual level of activity was 4,950 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for February:
10-62

153. The selling and administrative expenses in the planning budget for February would be closest to: A. $30,490 B. $30,495 C. $30,500 D. $30,190
154. The direct materials in the flexible budget for February would be closest to: A. $91,575 B. $95,985 C. $92,500 D. $94,075
155. The activity variance for direct labor in February would be closest to: A. $340 U B. $760 F C. $340 F D. $760 U
156. The spending variance for direct materials in February would be closest to: A. $3,450 F B. $2,525 U C. $3,450 U D. $2,525 F
10-63

Worden Hospital bases its budgets on patient-visits. The hospital's static budget for February appears below:
157. The total variable cost at the activity level of 4,400 patient-visits per month should be: A. $85,140 B. $87,120 C. $65,120 D. $63,640
158. The total fixed cost at the activity level of 4,700 patient-visits per month should be: A. $162,620 B. $148,780 C. $93,060 D. $85,140
159. The total cost at the activity level of 4,600 patient-visits per month should be: A. $153,720 B. $148,780 C. $153,220 D. $159,160
10-64

Dwelmont Hotel bases its budgets on guest-days. The hotel's static budget for May appears below:
160. The total variable cost at the activity level of 2,600 guest-days per month should be: A. $36,920 B. $32,660 C. $45,540 D. $51,480
161. The total fixed cost at the activity level of 2,900 guest-days per month should be: A. $78,200 B. $57,420 C. $98,600 D. $45,540
162. The total cost at the activity level of 2,800 guest-days per month should be: A. $95,200 B. $86,230 C. $85,300 D. $78,200
10-65

Springmeyer Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,940 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August:
163. The personnel expenses in the planning budget for August would be closest to: A. $69,600 B. $73,800 C. $70,560 D. $73,200
164. The administrative expenses in the planning budget for August would be closest to: A. $7,594 B. $7,590 C. $7,165 D. $7,264
10-66

165. The net operating income in the planning budget for August would be closest to: A. $15,416 B. $11,878 C. $11,557 D. $14,560
Weisgarber Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 3,900 client-visits, but its actual level of activity was 3,850 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for August:
166. The personnel expenses in the planning budget for August would be closest to: A. $83,940 B. $88,444 C. $83,310 D. $87,310
167. The administrative expenses in the planning budget for August would be closest to: A. $7,780 B. $8,144 C. $8,040 D. $7,770
10-67

Smithson Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,270 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for May:
169. The medical supplies in the flexible budget for May would be closest to: A. $14,907 B. $15,488 C. $15,207 D. $15,030
10-68

170. The occupancy expenses in the flexible budget for May would be closest to: A. $14,334 B. $13,840 C. $13,786 D. $14,599
Mah Clinic uses client-visits as its measure of activity. During April, the clinic budgeted for 3,800 client-visits, but its actual level of activity was 3,750 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:
172. The medical supplies in the flexible budget for April would be closest to: A. $21,340 B. $22,600 C. $22,325 D. $21,913
10-69

173. The occupancy expenses in the flexible budget for April would be closest to: A. $15,575 B. $15,660 C. $14,975 D. $15,377
Lauser Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,690 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July:
10-70

175. The personnel expenses in the planning budget for July would be closest to: A. $54,730 B. $54,641 C. $52,341 D. $52,483
176. The occupancy expenses in the flexible budget for July would be closest to: A. $12,466 B. $12,991 C. $12,921 D. $12,480
177. The net operating income in the flexible budget for July would be closest to: A. $17,215 B. $17,122 C. $11,140 D. $11,018
10-71

Higgenbotham Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 3,600 client-visits, but its actual level of activity was 3,580 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for May:
178. The administrative expenses in the planning budget for May would be closest to: A. $5,261 B. $5,440 C. $5,232 D. $5,432
180. The medical supplies in the flexible budget for May would be closest to: A. $20,164 B. $19,340 C. $19,941 D. $19,242
10-72

Jauron Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During September, the kennel budgeted for 2,300 tenantdays, but its actual level of activity was 2,310 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for September:
181. The wages and salaries in the planning budget for September would be closest to: A. $13,741 B. $13,682 C. $13,781 D. $13,730
182. The administrative expenses in the planning budget for September would be closest to: A. $7,362 B. $7,181 C. $7,360 D. $7,212
10-73

183. The net operating income in the planning budget for September would be closest to: A. $10,772 B. $6,979 C. $10,866 D. $6,870
Lutts Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During November, the kennel budgeted for 3,800 tenant-days, but its actual level of activity was 3,850 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
184. The wages and salaries in the planning budget for November would be closest to: A. $27,610 B. $27,280 C. $28,238 D. $28,610
185. The administrative expenses in the planning budget for November would be closest to: A. $7,310 B. $7,520 C. $7,540 D. $7,215
10-74

186. The net operating income in the planning budget for November would be closest to: A. $12,720 B. $9,648 C. $9,904 D. $13,115
Swader Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During March, the kennel budgeted for 2,900 tenant-days, but its actual level of activity was 2,930 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March:
187. The expendables in the flexible budget for March would be closest to: A. $25,905 B. $25,650 C. $27,274 D. $26,719
10-75

188. The facility expenses in the flexible budget for March would be closest to: A. $20,700 B. $20,369 C. $20,793 D. $20,820
189. The net operating income in the flexible budget for March would be closest to: A. $12,522 B. $12,267 C. $9,414 D. $9,120
Whetstine Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During September, the kennel budgeted for 3,200 tenant-days, but its actual level of activity was 3,180 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
190. The expendables in the flexible budget for September would be closest to: A. $27,630 B. $27,864 C. $27,517 D. $27,800
10-76

191. The facility expenses in the flexible budget for September would be closest to: A. $21,320 B. $21,238 C. $21,513 D. $21,784
192. The net operating income in the flexible budget for September would be closest to: A. $8,548 B. $4,967 C. $5,029 D. $8,720
Kalinowski Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennel budgeted for 2,300 tenant-days, but its actual level of activity was 2,320 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:
10-77

193. The wages and salaries in the planning budget for February would be closest to: A. $15,570 B. $16,197 C. $16,338 D. $15,688
195. The net operating income in the flexible budget for February would be closest to: A. $10,370 B. $10,608 C. $7,642 D. $7,775
10-78

Laboe Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennel budgeted for 2,900 tenantdays, but its actual level of activity was 2,940 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
196. The administrative expenses in the planning budget for February would be closest to: A. $7,814 B. $7,770 C. $7,922 D. $7,782
197. The net operating income in the planning budget for February would be closest to: A. $7,191 B. $7,391 C. $7,900 D. $8,260
198. The expendables in the flexible budget for February would be closest to: A. $26,990 B. $27,354 C. $27,021 D. $27,772
10-79

Dantuono Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During November, the company budgeted for 7,700 units, but its actual level of activity was 7,720 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for November:
199. The direct labor in the planning budget for November would be closest to: A. $44,004 B. $42,744 C. $42,633 D. $43,890
200. The selling and administrative expenses in the planning budget for November would be closest to: A. $30,490 B. $29,974 C. $30,504 D. $29,896
10-80

Menson Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During December, the company budgeted for 5,800 units, but its actual level of activity was 5,830 units. The company has provided the following data concerning the formulas to be used in its budgeting:
202. The direct labor in the planning budget for December would be closest to: A. $46,057 B. $45,820 C. $43,927 D. $43,701
203. The selling and administrative expenses in the planning budget for December would be closest to: A. $24,898 B. $24,880 C. $23,988 D. $23,865
10-81

204. The net operating income in the planning budget for December would be closest to: A. $19,788 B. $24,979 C. $19,380 D. $25,238
Nasson Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 6,700 units, but its actual level of activity was 6,730 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August:
205. The direct materials in the flexible budget for August would be closest to: A. $71,020 B. $71,338 C. $72,913 D. $72,264
10-82

206. The manufacturing overhead in the flexible budget for August would be closest to: A. $55,358 B. $55,855 C. $55,076 D. $55,040
207. The net operating income in the flexible budget for August would be closest to: A. $22,506 B. $18,317 C. $17,930 D. $22,708
Poulsen Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 7,300 units, but its actual level of activity was 7,270 units. The company has provided the following data concerning the formulas to be used in its budgeting:
208. The direct materials in the flexible budget for July would be closest to: A. $68,338 B. $70,298 C. $68,620 D. $70,879
10-83

209. The manufacturing overhead in the flexible budget for July would be closest to: A. $47,190 B. $47,151 C. $45,344 D. $45,719
Witherington Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 7,800 units, but its actual level of activity was 7,850 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June:
10-84

211. The direct labor in the planning budget for June would be closest to: A. $32,970 B. $32,760 C. $34,310 D. $34,091
212. The manufacturing overhead in the flexible budget for June would be closest to: A. $57,435 B. $54,794 C. $57,380 D. $55,498
213. The net operating income in the flexible budget for June would be closest to: A. $34,017 B. $33,585 C. $29,520 D. $30,190
10-85

Manago Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During March, the company budgeted for 5,300 units, but its actual level of activity was 5,310 units. The company has provided the following data concerning the formulas to be used in its budgeting:|
214. The selling and administrative expenses in the planning budget for March would be closest to: A. $25,640 B. $26,199 C. $26,248 D. $25,648
215. The net operating income in the planning budget for March would be closest to: A. $11,705 B. $21,877 C. $21,710 D. $11,749
216. The direct materials in the flexible budget for March would be closest to: A. $73,278 B. $73,929 C. $73,140 D. $74,208
10-86

Bessey Hospital bases its budgets on patient-visits. The hospital's static planning budget for January appears below:
217. The spending variance for supplies costs in the flexible budget performance report for the month is: A. $4,180 F B. $4,180 U C. $2,560 F D. $2,560 U
218. The spending variance for laundry costs in the flexible budget performance report for the month is: A. $730 F B. $2,470 F C. $730 U D. $2,470 U
10-87

219. The spending variance for occupancy costs in the flexible budget performance report for the month is: A. $330 F B. $2,090 F C. $330 U D. $2,090 U
Salling Corporation bases its budgets on machine-hours. The company's static planning budget for May appears below:
220. The spending variance for supplies costs in the flexible budget performance report for the month should be: A. $1,340 U B. $1,340 F C. $460 U D. $460 F
10-88

221. The spending variance for power costs in the flexible budget performance report for the month should be: A. $310 U B. $310 F C. $820 U D. $820 F
222. The spending variance for equipment depreciation in the flexible budget performance report for the month should be: A. $540 F B. $10 F C. $10 U D. $540 U
Genito Corporation's static planning budget for October appears below. The company bases its budgets on machine-hours.
In October, the actual number of machine-hours was 8,800, the actual supplies cost was $69,450, the actual power cost was $34,190, the actual salaries cost was $86,490, and the actual equipment depreciation was $37,600.
223. The spending variance for supplies cost in the flexible budget performance report for the month should be: A. $4,500 F B. $7,110 F C. $7,110 U D. $4,500 U
10-89

224. The spending variance for power cost in the flexible budget performance report for the month should be: A. $1,510 F B. $2,770 U C. $1,510 U D. $2,770 F
225. The spending variance for equipment depreciation in the flexible budget performance report for the month should be: A. $200 U B. $1,120 F C. $200 F D. $1,120 U
Lauter Printing uses two measures of activity, press runs and book set-ups, in the cost formulas in its budgets and performance reports. The cost formula for wages and salaries is $5,300 per month plus $480 per press run plus $1,080 per book set-up. The company expected its activity in October to be 169 press runs and 64 book set-ups, but the actual activity was 167 press runs and 60 book set-ups. The actual cost for wages and salaries in October was $155,690.
226. The wages and salaries in the planning budget for October would be closest to: A. $157,555 B. $155,690 C. $150,260 D. $155,540
227. The wages and salaries in the flexible budget for October would be closest to: A. $155,540 B. $155,690 C. $150,260 D. $153,699
10-90

228. The activity variance for wages and salaries in October would be closest to: A. $5,280 U B. $150 U C. $150 F D. $5,280 F
229. The spending variance for wages and salaries in October would be closest to: A. $5,430 U B. $150 U C. $5,430 F D. $150 F
Spraque 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 $40,520 per month plus $2,733 per flight plus $11 per passenger. The company expected its activity in June to be 71 flights and 207 passengers, but the actual activity was 70 flights and 205 passengers. The actual cost for plane operating costs in June was $239,580.
230. The plane operating costs in the planning budget for June would be closest to: A. $239,580 B. $236,840 C. $234,085 D. $243,003
231. The plane operating costs in the flexible budget for June would be closest to: A. $233,504 B. $234,085 C. $239,580 D. $236,840
10-91

232. The activity variance for plane operating costs in June would be closest to: A. $2,755 U B. $2,755 F C. $2,740 F D. $2,740 U
233. The spending variance for plane operating costs in June would be closest to: A. $2,740 U B. $5,495 U C. $5,495 F D. $2,740 F
10-92

Essay Questions 234. Immen Corporation bases its budgets on the activity measure customers served. During May, the company planned to serve 38,000 customers. The company has provided the following data concerning the formulas its uses in its budgeting:
The company has also furnished its income statement for May:
Required: Prepare a report showing the company's activity variances for May. Indicate in each case whether the variance is favorable (F) or unfavorable (U).
10-93

235. Faggs Corporation bases its budgets on the activity measure customers served. During December, the company planned to serve 33,000 customers, but actually served 36,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:
Required: Prepare a report showing the company's activity variances for December. Indicate in each case whether the variance is favorable (F) or unfavorable (U).
10-94

236. Brynteson Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 24,000 customers, but actually served 19,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $2.90q Wages and salaries: $24,700 + $0.90q Supplies: $0.40q Insurance: $4,900 Miscellaneous: $2,800 + $0.10q Required: Prepare a report showing the company's activity variances for September. Indicate in each case whether the variance is favorable (F) or unfavorable (U).
237. Domin Corporation bases its budgets on the activity measure customers served. During April, the company planned to serve 31,000 customers, but actually served 35,000 customers. Revenue is $4.80 per customer served. Wages and salaries are $33,000 per month plus $1.60 per customer served. Supplies are $1.00 per customer served. Insurance is $12,200 per month. Miscellaneous expenses are $7,400 per month plus $0.20 per customer served. Required: Prepare a report showing the company's activity variances for April. Indicate in each case whether the variance is favorable (F) or unfavorable (U).
10-95

238. Fasano Clinic bases its budgets on the activity measure patient-visits. During April, the clinic planned for 3,800 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting:
The clinic has also furnished its income statement for April:
Required: Prepare a report showing the clinic's activity variances for April.
10-96

239. Mulvehill Clinic bases its budgets on the activity measure patient-visits. During June, the clinic planned for 3,000 patient-visits, but the actual level of activity was 3,400 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting:
Required: Prepare a report showing the clinic's activity variances for June. Indicate in each case whether the variance is favorable (F) or unfavorable (U).
10-97

240. Mccarter Clinic bases its budgets on the activity measure patient-visits. During April, the clinic planned for 2,700 patient-visits, but its actual level of activity was 2,400 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting:
Required: Prepare a report showing the clinic's activity variances for April. Indicate in each case whether the variance is favorable (F) or unfavorable (U).
241. Delamarter Clinic bases its budgets on the activity measure patient-visits. During June, the clinic planned for 2,600 patient-visits, but its actual level of activity was 3,100 patient-visits. Revenue should be $53.40 per patient-visit. Personnel expenses should be $39,700 per month plus $12.60 per patient-visit. Medical supplies should be $1,800 per month plus $10.40 per patient-visit. Occupancy expenses should be $8,200 per month plus $2.30 per patient-visit. Administrative expenses should be $6,100 per month plus $0.20 per patient-visit. Required: Prepare a report showing the clinic's activity variances for June. Indicate in each case whether the variance is favorable (F) or unfavorable (U).
10-98

242. Alicuben Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for October was based on 2,200 meals, but the diner actually served 2,000 meals. The diner's director has provided the following cost formulas to use in budgets:
The director has also provided the diner's statement of actual expenses for the month:
Required: Prepare a report showing the activity variances for each of the expenses and for total expenses for October. Label each variance as favorable (F) or unfavorable (U).
10-99

243. Aslanian Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for November was based on 2,200 meals, but the diner actually served 2,700 meals. The diner's director has provided the following cost formulas to use in budgets:
Required: Prepare a report showing the activity variances for each of the expenses and for total expenses for November. Label each variance as favorable (F) or unfavorable (U). Label each variance as favorable (F) or unfavorable (U).
10-100

244. Mulry Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for September was based on 3,000 meals, but the diner actually served 2,800 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.45 per meal; kitchen operations, $4,900 per month plus $1.65 per meal; administrative expenses, $3,600 per month plus $0.60 per meal; and fundraising expenses, $1,200 per month. The director has also provided the diner's statement of actual expenses for the month:
Required: Prepare a report showing the activity variances for each of the expenses and for total expenses for September.
10-101

245. Flicker Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for December was based on 2,400 meals, but the diner actually served 2,300 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.00 per meal; kitchen operations, $5,100 per month plus $1.85 per meal; administrative expenses, $2,900 per month plus $0.65 per meal; and fundraising expenses, $1,000 per month. Required: Prepare a report showing the activity variances for each of the expenses and for total expenses for December. Label each variance as favorable (F) or unfavorable (U).
10-102

246. Lakey Corporation uses customers served as its measure of activity. During July, the company budgeted for 33,000 customers, but actually served 34,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for July:
Required: Prepare a report showing the company's revenue and spending variances for July. Label each variance as favorable (F) or unfavorable (U).
10-103

247. Mieras Corporation uses customers served as its measure of activity. During January, the company budgeted for 37,000 customers, but actually served 36,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $2.80q Wages and salaries: $22,800 + $0.90q Supplies: $0.50q Insurance: $7,500 Miscellaneous: $3,800 + $0.30q The company reported the following actual results for January:
Required: Prepare a report showing the company's revenue and spending variances for January. Label each variance as favorable (F) or unfavorable (U).
10-104

248. Fuquay Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $4.80 per customer served. Wages and salaries should be $26,500 per month plus $1.70 per customer served. Supplies should be $0.90 per customer served. Insurance should be $7,100 per month. Miscellaneous expenses should be $4,700 per month plus $0.20 per customer served. The company reported the following actual results for May:
Required: Prepare a report showing the company's revenue and spending variances for May. Label each variance as favorable (F) or unfavorable (U).
10-105

249. Kary Clinic uses patient-visits as its measure of activity. During May, the clinic budgeted for 3,800 patient-visits, but its actual level of activity was 4,100 patient-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for May:
Required: Prepare a report showing the clinic's revenue and spending variances for May. Label each variance as favorable (F) or unfavorable (U).
10-106

250. Gasco Clinic uses patient-visits as its measure of activity. During August, the clinic budgeted for 2,000 patient-visits, but its actual level of activity was 2,100 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits: Revenue: $62.90q Personnel expenses: $28,500 + $20.40q Medical supplies: $1,400 + $9.90q Occupancy expenses: $8,200 + $3.30q Administrative expenses: $4,000 + $0.40q The clinic reported the following actual results for August:
Required: Prepare a report showing the clinic's revenue and spending variances for August. Label each variance as favorable (F) or unfavorable (U).
10-107

251. Braseth Clinic uses patient-visits as its measure of activity. The clinic bases its budgets on the following information: Revenue should be $39.90 per patient-visit. Personnel expenses should be $35,400 per month plus $13.00 per patient-visit. Medical supplies should be $1,100 per month plus $4.90 per patient-visit. Occupancy expenses should be $8,400 per month plus $2.00 per patient-visit. Administrative expenses should be $4,700 per month plus $0.20 per patient-visit. The clinic reported the following actual results for January:
Required: Prepare a report showing the clinic's revenue and spending variances for January. Label each variance as favorable (F) or unfavorable (U).
10-108

252. Villella Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for October was based on 3,800 meals. The diner's director has provided the following cost formulas to use in budgets:
Required: Prepare a report showing the spending variances for each of the expenses and for total expenses for October. Label each variance as favorable (F) or unfavorable (U).
10-109

253. Garing Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for March was based on 3,600 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.20 per meal; kitchen operations, $4,300 per month plus $1.90 per meal; administrative expenses, $3,300 per month plus $0.20 per meal; and fundraising expenses, $1,000 per month. The director has also provided the diner's statement of actual expenses for the month:
Required: Prepare a report showing the diner's spending variances for each of the expenses and for total expenses for March. Label each variance as favorable (F) or unfavorable (U).
10-110

254. Legorreta Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of November:
Required: Prepare the company's flexible budget performance report for November. Label each variance as favorable (F) or unfavorable (U).
10-111

255. Duell Clinic uses patient-visits as its measure of activity. The following report compares the planning budget to the actual operating results for the month of January:
Required: Prepare the clinic's flexible budget performance report for January. Label each variance as favorable (F) or unfavorable (U).
10-112

256. Squillace Corporation uses customers served as its measure of activity. During October, the company budgeted for 38,000 customers, but actually served 35,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:
Required: Prepare the company's flexible budget performance report for October. Label each variance as favorable (F) or unfavorable (U).
10-113

257. Guy Corporation uses customers served as its measure of activity. During January, the company budgeted for 32,000 customers, but actually served 35,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.20q Wages and salaries: $33,900 + $1.40q Supplies: $0.60q Insurance: $10,000 Miscellaneous: $7,000 + $0.40q The company reported the following actual results for January:
Required: Prepare the company's flexible budget performance report for January. Label each variance as favorable (F) or unfavorable (U).
10-114

258. Cotillo Corporation uses customers served as its measure of activity. During December, the company budgeted for 29,000 customers, but actually served 27,000 customers. The company bases its budgets on the following information: Revenue should be $4.40 per customer served. Wages and salaries should be $33,300 per month plus $1.80 per customer served. Supplies should be $0.60 per customer served. Insurance should be $8,900 per month. Miscellaneous expenses should be $4,600 per month plus $0.10 per customer served. The company reported the following actual results for December:
Required: Prepare the company's flexible budget performance report for December. Label each variance as favorable (F) or unfavorable (U).
10-115

259. Thews Clinic uses patient-visits as its measure of activity. During August, the clinic budgeted for 2,000 patient-visits, but its actual level of activity was 2,200 patient-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August:
Required: Prepare the clinic's flexible budget performance report for August. Label each variance as favorable (F) or unfavorable (U).
10-116

260. Mcgannon Clinic uses patient-visits as its measure of activity. During November, the clinic budgeted for 3,700 patient-visits, but its actual level of activity was 4,100 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits: Revenue: $23.90q Personnel expenses: $20,800 + $7.90q Medical supplies: $800 + $3.50q Occupancy expenses: $6,100 + $1.30q Administrative expenses: $3,100 + $0.10q The clinic reported the following actual results for November:
Required: Prepare the clinic's flexible budget performance report for November. Label each variance as favorable (F) or unfavorable (U).
10-117

261. Vernon Clinic uses patient-visits as its measure of activity. During February, the clinic budgeted for 3,100 patient-visits, but its actual level of activity was 2,800 patient-visits. The clinic bases its budgets on the following information: Revenue should be $30.20 per patientvisit. Personnel expenses should be $20,600 per month plus $9.70 per patient-visit. Medical supplies should be $1,400 per month plus $5.40 per patient-visit. Occupancy expenses should be $5,700 per month plus $1.50 per patient-visit. Administrative expenses should be $2,500 per month plus $0.30 per patient-visit. The clinic reported the following actual results for February:
Required: Prepare the clinic's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U).
10-118

262. Gamon Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for April was based on 3,600 meals. The diner's director has provided the following cost formulas to use in budgets:
Required: Prepare a flexible budget performance report showing both the activity variances and the spending variances for each of the expenses and for total expenses for April. Label each variance as favorable (F) or unfavorable (U).
10-119

263. Wrape Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for April was based on 2,100 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.55 per meal; kitchen operations, $4,700 per month plus $1.70 per meal; administrative expenses, $3,300 per month plus $0.60 per meal; and fundraising expenses, $1,000 per month. The director has also provided the diner's statement of actual expenses for the month:
10-120

264. Hausman Hospital bases its budgets on patient-visits. The hospital's static planning budget for October appears below:
Required: Prepare a flexible budget for 8,900 patient-visits per month.
10-121

265. Turiano Corporation bases its budgets on machine-hours. The company's static planning budget for November appears below:
Required: Prepare a flexible budget for 9,800 machine-hours per month.
10-122

266. Therrien Corporation bases its budgets on the activity measure customers served. During September, the company plans to serve 30,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:
Required: Prepare the company's planning budget for September.
267. During March, Holston Corporation plans to serve 31,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.60q Wages and salaries: $36,600 + $1.60q Supplies: $0.80q Insurance: $10,900 Miscellaneous: $8,500 + $0.20q Required: Prepare the company's planning budget for March.
10-123

268. During August, Klinck Corporation plans to serve 33,000 customers. Revenue is $2.50 per customer served. Wages and salaries are $24,300 per month plus $0.90 per customer served. Supplies are $0.30 per customer served. Insurance is $7,100 per month. Miscellaneous expenses are $5,200 per month plus $0.10 per customer served. Required: Prepare the company's planning budget for August.
269. Novielli Corporation bases its budgets on the activity measure customers served. During November, the company planned to serve 39,000 customers, but actually served 44,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:
Required: Prepare the company's flexible budget for November based on the actual level of activity for the month.
10-124

270. During September, Booker Corporation budgeted for 20,000 customers, but actually served 22,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $5.50q Wages and salaries: $28,300 + $1.70q Supplies: $1.00q Insurance: $6,300 Miscellaneous: $5,400 + $0.40q Required: Prepare the company's flexible budget for September based on the actual level of activity for the month.
271. During July, Bosell Corporation budgeted for 22,000 customers, but actually served 21,000 customers. Revenue should be $6.80 per customer served. Wages and salaries should be $35,900 per month plus $2.40 per customer served. Supplies should be $1.20 per customer served. Insurance should be $12,000 per month. Miscellaneous expenses should be $6,000 per month plus $0.30 per customer served. Required: Prepare the company's flexible budget for July based on the actual level of activity for the month.
10-125

272. Gramling Clinic bases its budgets on patient-visits. During July, the clinic plans for a level of activity of 2,500 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting:
Required: Prepare the clinic's planning budget for July.
273. During September, Noaks Clinic plans for an activity level of 3,300 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits: Revenue: $30.50q Personnel expenses: $30,900 + $8.40q Medical supplies: $1,200 + $4.50q Occupancy expenses: $6,400 + $1.70q Administrative expenses: $3,700 + $0.10q Required: Prepare the clinic's planning budget for September.
10-126

274. During June, Defee Clinic plans for an activity level of 3,200 patient-visits. Revenue is $50.80 per patient-visit. Personnel expenses are $35,300 per month plus $16.70 per patientvisit. Medical supplies are $1,400 per month plus $8.50 per patient-visit. Occupancy expenses are $12,500 per month plus $2.60 per patient-visit. Administrative expenses are $7,200 per month plus $0.20 per patient-visit. Required: Prepare the clinic's planning budget for June.
275. Clune Clinic bases its budgets on the activity measure patient-visits. During October, the clinic planned for an activity level of 2,100 patient-visits, but the activity level was actually 2,600 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting:
Required: Prepare the clinic's flexible budget for October based on the actual level of activity for the month.
10-127

276. During October, Moceri Clinic budgeted for 3,000 patient-visits, but its actual level of activity was 3,500 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits: Revenue: $41.80q Personnel expenses: $30,900 + $13.70q Medical supplies: $700 + $7.80q Occupancy expenses: $8,900 + $1.50q Administrative expenses: $3,600 + $0.20q Required: Prepare the clinic's flexible budget for October based on the actual level of activity for the month.
277. During May, Phong Clinic budgeted for 2,900 patient-visits, but its actual level of activity was 3,100 patient-visits. Revenue should be $31.30 per patient-visit. Personnel expenses should be $23,700 per month plus $8.10 per patient-visit. Medical supplies should be $700 per month plus $6.20 per patient-visit. Occupancy expenses should be $7,000 per month plus $1.50 per patient-visit. Administrative expenses should be $3,400 per month plus $0.40 per patient-visit. Required: Prepare the clinic's flexible budget for May based on the actual level of activity for the month.
10-128

278. Vilanova Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for May is to be based on 2,700 meals. The diner's director has provided the following cost formulas to use in the budget:
Required: Prepare the diner's budget for the month of May. The budget will only contain the costs listed above; no revenues will be on the budget.
10-129

279. Mcduffey Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for September was based on 2,900 meals, but the diner actually served 2,800 meals. The diner's director has provided the following cost formulas to use in budgets:
Required: Prepare the diner's flexible budget for the actual number of meals served in September. The budget will only contain the costs listed above; no revenues will be on the budget.
280. Korando Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for June is to be based on 2,900 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.60 per meal; kitchen operations, $4,200 per month plus $1.15 per meal; administrative expenses, $2,800 per month plus $0.65 per meal; and fundraising expenses, $1,000 per month. Required: Prepare the diner's budget for the month of June. The budget will only contain the costs listed above; no revenues will be on the budget.
10-130

281. Salvia Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for May was based on 3,400 meals, but the diner actually served 3,700 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.90 per meal; kitchen operations, $4,100 per month plus $1.90 per meal; administrative expenses, $2,400 per month plus $0.20 per meal; and fundraising expenses, $1,000 per month. Required: Prepare the diner's flexible budget for the actual number of meals served in May. The budget will only contain the costs listed above; no revenues will be on the budget.
10-131

282. Alarie Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
In November, the school budgeted for 1,420 students and 139 courses. The actual activity for the month was 1,220 students and 142 courses. Required: Prepare a report showing the school's activity variances for November. Label each variance as favorable (F) or unfavorable (U).
10-132

283. Eisner Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
In October, the school budgeted for 1,490 students and 85 courses. The school's income statement showing the actual results for the month appears below:
Required: Prepare a report showing the school's activity variances for October. Label each variance as favorable (F) or unfavorable (U).
10-133

284. Bures Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting:
In April, the company budgeted for 360 guests and 134 jeeps. The actual activity for the month was 335 guests and 136 jeeps. Required: Prepare a report showing the company's activity variances for April. Label each variance as favorable (F) or unfavorable (U).
10-134

285. Mashore Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting:
In April, the company budgeted for 495 guests and 187 jeeps. The company's income statement showing the actual results for the month appears below:
Required: Prepare a report showing the company's activity variances for April. Label each variance as favorable (F) or unfavorable (U).
10-135

286. Ahrns Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
In July, the school budgeted for 1,770 students and 148 courses. The school's income statement showing the actual results for the month appears below:
Required: Prepare a report showing the school's revenue and spending variances for July. Label each variance as favorable (F) or unfavorable (U).
10-136

287. Ruvolo Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting:
In February, the company budgeted for 436 guests and 162 jeeps. The company's income statement showing the actual results for the month appears below:
Required: Prepare a report showing the company's revenue and spending variances for February. Label each variance as favorable (F) or unfavorable (U).
10-137

288. Brink Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
In June, the school budgeted for 1,710 students and 110 courses. The school's income statement showing the actual results for the month appears below:
Required: Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for June. Label each variance as favorable (F) or unfavorable (U).
10-138

289. Palamino Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting:
In January, the company budgeted for 330 guests and 143 jeeps. The company's income statement showing the actual results for the month appears below:
Required: Prepare a flexible budget performance report showing both the company's activity variances and revenue and spending variances for January. Label each variance as favorable (F) or unfavorable (U).
10-139

290. Alto Clinic uses patient-visits as its measure of activity. The clinic has provided the following report:
Required: Prepare the clinic's flexible budget performance report for June. Label each variance as favorable (F) or unfavorable (U).
10-140

291. Drobot Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
In November, the school budgeted for 1,470 students and 126 courses. The actual activity for the month was 1,770 students and 122 courses. Required: Prepare the school's planning budget for November.
10-141

292. Hasselman Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
In January, the school budgeted for 1,110 students and 105 courses. The actual activity for the month was 1,210 students and 103 courses. Required: Prepare the school's flexible budget for the actual level of activity in January.
10-142

293. Lantrip Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting:
In January, the company budgeted for 356 guests and 174 jeeps. The actual activity for the month was 341 guests and 177 jeeps. Required: Prepare the company's planning budget for January.
10-143

294. Karpin Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting:
In July, the company budgeted for 434 guests and 132 jeeps. The actual activity for the month was 459 guests and 137 jeeps. Required: Prepare the company's flexible budget for the actual level of activity in July.
10-144
Chapter 010, Flexible Budgets and Performance Analysis Key
True / False Questions 1. The main difference between a flexible budget and a static budget is that a flexible budget does not contain fixed costs. FALSE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 1 Level: Easy
2. A problem with directly comparing a static planning budget to actual costs is that this comparison fails to distinguish between differences in costs that are due to changes in activity and differences that are due to how well costs were controlled. TRUE
3. A planning budget is prepared before the period begins and is valid for only the planned level of activity. TRUE
10-145
4. A flexible budget is an estimate of what revenues and costs should have been, given the level of activity that had been planned for the period. FALSE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 1 Level: Medium
5. An unfavorable activity variance for a cost indicates that spending was higher than it should have been for the actual level of activity for the period. FALSE
6. The activity variance for revenue is unfavorable if the actual revenue for the period is less than the revenue in the static planning budget. FALSE
7. The revenue and spending variances are the differences between the static planning budget and the flexible budget. FALSE
10-146
8. A revenue variance is unfavorable if the actual revenue is less than what the revenue should have been for the actual level of activity for the period. TRUE
9. When the activity measure is the number of units sold, the revenue variance is unfavorable if the average actual selling price is less than expected. TRUE
10. A favorable spending variance occurs when the actual cost is less than the amount of that cost in the flexible budget. TRUE
11. A flexible budget performance report should contain fixed as well as variable and mixed costs. TRUE
10-147
12. It may be easier to control fixed costs than variable costs. TRUE
13. A static planning budget is suitable for planning and for evaluating how well costs are controlled. FALSE
14. If the actual level of activity is 4% less than planned, then the costs in the static budget should be reduced by 4% before comparing them to actual costs. FALSE
15. If the actual level of activity is 4% more than planned, then the fixed costs in the static budget should be increased by 4% before comparing them to actual costs. FALSE
10-148
Multiple Choice Questions 16. A flexible budget: A. classifies budget requests by activity and estimates the benefits arising from each activity. B. presents a statement of expectations for a period of time but does not present a firm commitment. C. presents the plan for only one level of activity and does not adjust to changes in the level of activity. D. presents the plan for a range of activity so that the plan can be adjusted for changes in activity levels.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 1 Level: Easy Source: CMA, adapted
17. A flexible budget is a budget that: A. is updated with actual costs as they occur during the period. B. is updated to reflect the actual level of activity during the period. C. is prepared using a computer spreadsheet application. D. contains only variable production costs.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 1 Level: Easy Source: CIMA, adapted
10-149
18. Which of the following comparisons best isolates the impact that changes in prices of inputs and outputs have on performance? A. static planning budget and flexible budget B. static planning budget and actual results C. flexible budget and actual results D. master budget and static planning budget
19. Marchi Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below:
The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 70 guests? A. $42,460.00 B. $6,620.00 C. $7,086.15 D. $6,580.00 Variable cost per guest = ($156 + $364) 65 guests = $8 per guest ($250 + $4,480 + $1,330) + ($8 x 70) = $6,620.00
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 1 Level: Easy
10-150
20. Barringer Manufacturing Corporation has prepared the following overhead budget for next month.
The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 7,900 machine-hours rather than 7,800 machine-hours? A. $110,710.00 B. $109,620.00 C. $110,868.00 D. $111,025.38 Variable cost per machine-hour = ($34,320 + $50,700) 7,800 machine-hours = $10.90 per machine-hour ($10,200 + $5,600 + $8,800) + ($10.90 x 7,900) = $110,710.00
10-151
21. Placek Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below:
The total overhead cost at an activity level of 7,700 patient-visits per month should be: A. $129,550 B. $121,720 C. $129,100 D. $137,830 ($21,080 + $44,880) + [($2.60 + $5.60) x 7,700] = $129,100
10-152
22. Dike Hotel bases its budgets on guest-days. The hotel's static budget for June appears below:
The total overhead cost at an activity level of 8,400 guest-days per month should be: A. $159,440 B. $149,650 C. $160,430 D. $172,200 ($68,620 + $16,060) + [($6.70 + $2.20) x 8,400] = $159,440
10-153
23. Blackwelder Snow Removal's cost formula for its vehicle operating cost is $1,240 per month plus $348 per snow-day. For the month of December, the company planned for activity of 12 snow-days, but the actual level of activity was 14 snow-days. The actual vehicle operating cost for the month was $6,330. The vehicle operating cost in the planning budget for December would be closest to: A. $5,426 B. $6,112 C. $5,416 D. $6,330 $1,240 + $348 x 12 = $5,416
24. Ofarrell Snow Removal's cost formula for its vehicle operating cost is $1,840 per month plus $377 per snow-day. For the month of November, the company planned for activity of 14 snow-days, but the actual level of activity was 19 snow-days. The actual vehicle operating cost for the month was $9,280. The vehicle operating cost in the flexible budget for November would be closest to: A. $9,003 B. $7,118 C. $9,280 D. $9,660 $1,840 + $377 x 19 = $9,003
10-154
25. Guilbault Midwifery's cost formula for its wages and salaries is $2,340 per month plus $154 per birth. For the month of June, the company planned for activity of 115 births, but the actual level of activity was 112 births. The actual wages and salaries for the month was $19,530. The wages and salaries in the planning budget for June would be closest to: A. $19,530 B. $19,588 C. $20,053 D. $20,050 $2,340 + $154 x 115 = $20,050
26. Dewberry Midwifery's cost formula for its wages and salaries is $1,960 per month plus $429 per birth. For the month of December, the company planned for activity of 128 births, but the actual level of activity was 130 births. The actual wages and salaries for the month was $56,020. The wages and salaries in the flexible budget for December would be closest to: A. $57,761 B. $57,730 C. $56,020 D. $56,872 $1,960 + $429 x 130 = $57,730
10-155
27. Entler Framing's cost formula for its supplies cost is $2,250 per month plus $16 per frame. For the month of June, the company planned for activity of 502 frames, but the actual level of activity was 497 frames. The actual supplies cost for the month was $10,580. The supplies cost in the planning budget for June would be closest to: A. $10,580 B. $10,282 C. $10,686 D. $10,202 $2,250 + $16 x 502 = $10,282
28. Rising Framing's cost formula for its supplies cost is $2,210 per month plus $10 per frame. For the month of January, the company planned for activity of 710 frames, but the actual level of activity was 705 frames. The actual supplies cost for the month was $9,500. The supplies cost in the flexible budget for January would be closest to: A. $9,260 B. $9,244 C. $9,500 D. $9,310 $2,210 + $10 x 705 = $9,260
10-156
29. Naval Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $430 per month plus $99 per job plus $10 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in March to be 12 jobs and 126 meals, but the actual activity was 9 jobs and 124 meals. The actual cost for catering supplies in March was $2,550. The catering supplies in the planning budget for March would be closest to: A. $3,400 B. $2,561 C. $2,550 D. $2,878 $430 + $99 x 12 + $10 x 126 = $2,878
30. Johannsen Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $310 per month plus $103 per job plus $23 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in February to be 28 jobs and 187 meals, but the actual activity was 26 jobs and 192 meals. The actual cost for catering supplies in February was $7,620. The catering supplies in the flexible budget for February would be closest to: A. $7,495 B. $7,404 C. $7,620 D. $6,960 $310 + $103 x 26 + $23 x 192 = $7,404
10-157
31. 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. $6,490 U B. $5,303 F C. $6,490 F D. $5,303 U
Since the flexible budget is greater than the planning budget, the variance is unfavorable (U)
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 2 Learning Objective: 5 Level: Easy
10-158
32. Kimbril Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $530 per month plus $91 per job plus $12 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in January to be 27 jobs and 174 meals, but the actual activity was 31 jobs and 173 meals. The actual cost for catering supplies in January was $5,330. The activity variance for catering supplies in January would be closest to: A. $255 F B. $255 U C. $352 F D. $352 U
10-159
33. Portsche Snow Removal's cost formula for its vehicle operating cost is $2,310 per month plus $317 per snow-day. For the month of November, 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 $8,730. The activity variance for vehicle operating cost in November would be closest to: A. $714 U B. $714 F C. $634 F D. $634 U
34. Reuer Midwifery's cost formula for its wages and salaries is $2,900 per month plus $475 per birth. For the month of March, the company planned for activity of 116 births, but the actual level of activity was 117 births. The actual wages and salaries for the month was $56,270. The activity variance for wages and salaries in March would be closest to: A. $1,730 U B. $475 F C. $475 U D. $1,730 F
10-160
35. Embertson Framing's cost formula for its supplies cost is $1,350 per month plus $16 per frame. For the month of June, the company planned for activity of 816 frames, but the actual level of activity was 812 frames. The actual supplies cost for the month was $14,680. The activity variance for supplies cost in June would be closest to: A. $64 U B. $274 U C. $64 F D. $274 F
Since the flexible budget expense is less than the planning budget, the variance is favorable (F)
36. Lapinsky 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 $31,400 per month plus $2,148 per flight plus $7 per passenger. The company expected its activity in April to be 89 flights and 261 passengers, but the actual activity was 84 flights and 260 passengers. The actual cost for plane operating costs in April was $204,810. The spending variance for plane operating costs in April would be closest to: A. $8,842 U B. $19,589 F C. $19,589 U D. $8,842 F
Since the actual expense is less than the flexible budget, the variance is favorable (F)
10-161
37. Posson Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $210 per month plus $96 per job plus $20 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in March to be 20 jobs and 162 meals, but the actual activity was 17 jobs and 164 meals. The actual cost for catering supplies in March was $4,990. The spending variance for catering supplies in March would be closest to: A. $380 F B. $132 U C. $132 F D. $380 U
10-162
38. Dunklin Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,620 patient-visits and the actual level of activity was 1,540 patient-visits. The cost formula for administrative expenses is $3.20 per patient-visit plus $14,300 per month. The actual administrative expense was $21,050. In the clinic's flexible budget performance report for last month, the spending variance for administrative expenses was: A. $118 F B. $256 F C. $1,566 U D. $1,822 U
Since the actual expense is more than the flexible budget, the variance is unfavorable (U)
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 3 Level: Medium
39. 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. $257 F B. $866 U C. $677 U D. $189 F
10-163
40. Cahalane Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of activity was 11,600 skeins and the actual level of activity was 12,000 skeins. The company's owner budgets for dye costs, a variable cost, at $0.31 per skein. The actual dye cost last month was $3,540. In the company's flexible budget performance report for last month, what would have been the spending variance for dye costs? A. $118 U B. $124 U C. $56 F D. $180 F
41. Gladstone Footwear Corporation's flexible budget cost formula for supplies, a variable cost, is $2.83 per unit of output. The company's flexible budget performance report for last month showed a $9,555 unfavorable spending variance for supplies. During that month, 19,500 units were produced. Budgeted activity for the month had been 19,300 units. The actual cost per unit for indirect materials must have been closest to: A. $3.32 B. $3.81 C. $2.83 D. $3.85 Actual supplies - Flexible budget = Spending variable (U) Actual supplies - (19,500 x $2.83) = $9,555 Actual supplies = $64,740 Actual cost per unit = $64,740 19,500 = $3.32
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 3 Level: Hard
10-164
42. Velten Corporation's flexible budget performance report for last month shows that actual indirect materials cost, a variable cost, was $45,198 and that the spending variance for indirect materials cost was $9,114 favorable. During that month, the company worked 18,600 machinehours. Budgeted activity for the month had been 19,000 machine-hours. The cost formula per machine-hour for indirect materials cost must have been closest to: A. $1.90 B. $2.86 C. $1.94 D. $2.92 Flexible budget - Actual cost = Spending variance (F) Flexible budget - $45,198 = $9,114 Flexible budget = $54,312 Cost formula per machine hour = $54,312 18,600 = $2.92
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 3 Level: Hard
43. 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: A. $2,123 U B. $292 F C. $2,123 F D. $292 U
10-165
44. Harville Midwifery's cost formula for its wages and salaries is $1,610 per month plus $199 per birth. For the month of March, the company planned for activity of 118 births, but the actual level of activity was 122 births. The actual wages and salaries for the month was $25,430. The spending variance for wages and salaries in March would be closest to: A. $458 F B. $338 U C. $458 U D. $338 F
45. Olivier Framing's cost formula for its supplies cost is $2,870 per month plus $16 per frame. For the month of January, the company planned for activity of 533 frames, but the actual level of activity was 534 frames. The actual supplies cost for the month was $11,080. The spending variance for supplies cost in January would be closest to: A. $334 U B. $334 F C. $318 U D. $318 F
10-166
46. Elizarraras 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 $39,820 per month plus $2,938 per flight plus $8 per passenger. The company expected its activity in June to be 64 flights and 229 passengers, but the actual activity was 66 flights and 225 passengers. The actual cost for plane operating costs in June was $234,570. The plane operating costs in the planning budget for June would be closest to: A. $229,684 B. $227,462 C. $234,570 D. $235,528 $39,820 + $2,938 x 64 + $8 x 229 = $229,684
47. Niforos 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 $41,380 per month plus $2,282 per flight plus $14 per passenger. The company expected its activity in August to be 77 flights and 264 passengers, but the actual activity was 78 flights and 261 passengers. The actual cost for plane operating costs in August was $216,740. The plane operating costs in the flexible budget for August would be closest to: A. $220,790 B. $223,030 C. $223,657 D. $216,740 $41,380 + $2,282 x 78 + $14 x 261 = $223,030
10-167
Pollica Corporation's cost formula for its selling and administrative expense is $11,400 per month plus $94 per unit. For the month of March, the company planned for activity of 5,700 units, but the actual level of activity was 5,660 units. The actual selling and administrative expense for the month was $522,860.
48. The selling and administrative expense in the planning budget for March would be closest to: A. $522,860 B. $547,200 C. $543,440 D. $526,555 $11,400 + $94 x 5,700 = $547,200
49. The selling and administrative expense in the flexible budget for March would be closest to: A. $547,200 B. $522,860 C. $543,360 D. $543,440 $11,400 + $94 x 5,660 = $543,440
10-168
50. The activity variance for selling and administrative expense in March would be closest to: A. $24,340 F B. $24,340 U C. $3,760 U D. $3,760 F
51. The spending variance for selling and administrative expense in March would be closest to: A. $20,580 F B. $24,340 U C. $24,340 F D. $20,580 U
10-169
Kuczenski Corporation's cost formula for its manufacturing overhead is $45,700 per month plus $53 per machine-hour. For the month of March, the company planned for activity of 6,200 machine-hours, but the actual level of activity was 6,150 machine-hours. The actual manufacturing overhead for the month was $373,630.
52. The manufacturing overhead in the planning budget for March would be closest to: A. $373,630 B. $371,650 C. $376,668 D. $374,300 $45,700 + $53 x 6,200 = $374,300
53. The manufacturing overhead in the flexible budget for March would be closest to: A. $371,650 B. $371,281 C. $373,630 D. $374,300 $45,700 + $53 x 6,150 = $371,650
10-170
54. The activity variance for manufacturing overhead in March would be closest to: A. $670 U B. $670 F C. $2,650 F D. $2,650 U
55. The spending variance for manufacturing overhead in March would be closest to: A. $670 F B. $1,980 U C. $1,980 F D. $670 U
Since the actual expense is greater than the flexible budget, the variance is unfavorable (U)
10-171
Kaaihue Detailing's cost formula for its materials and supplies is $2,750 per month plus $17 per vehicle. For the month of April, the company planned for activity of 95 vehicles, but the actual level of activity was 135 vehicles. The actual materials and supplies for the month was $4,850.
56. The materials and supplies in the planning budget for April would be closest to: A. $4,850 B. $5,045 C. $3,413 D. $4,365 $2,750 + $17 x 95 = $4,365
57. The materials and supplies in the flexible budget for April would be closest to: A. $6,203 B. $4,850 C. $4,365 D. $5,045 $2,750 + $17 x 135 = $5,045
10-172
58. The activity variance for materials and supplies in April would be closest to: A. $680 U B. $485 F C. $680 F D. $485 U
59. The spending variance for materials and supplies in April would be closest to: A. $195 F B. $485 F C. $195 U D. $485 U
10-173
Deleston Boat Wash's cost formula for its cleaning equipment and supplies is $2,150 per month plus $21 per boat. For the month of September, the company planned for activity of 79 boats, but the actual level of activity was 39 boats. The actual cleaning equipment and supplies for the month was $3,110.
60. The cleaning equipment and supplies in the planning budget for September would be closest to: A. $3,110 B. $6,300 C. $2,969 D. $3,809 $2,150 + $21 x 79 = $3,809
61. The cleaning equipment and supplies in the flexible budget for September would be closest to: A. $1,880 B. $3,110 C. $3,809 D. $2,969 $2,150 + $21 x 39 = $2,969
10-174
62. The activity variance for cleaning equipment and supplies in September would be closest to: A. $840 F B. $699 F C. $699 U D. $840 U
63. The spending variance for cleaning equipment and supplies in September would be closest to: A. $699 F B. $699 U C. $141 F D. $141 U
10-175
Werber Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,700 client-visits, but its actual level of activity was 2,730 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:
64. The activity variance for personnel expenses in January would be closest to: A. $661 U B. $261 U C. $261 F D. $661 F
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 1 Learning Objective: 2 Level: Medium
10-176
65. The activity variance for administrative expenses in January would be closest to: A. $12 F B. $8 F C. $12 U D. $8 U
66. The activity variance for net operating income in January would be closest to: A. $2,019 U B. $2,019 F C. $489 F D. $489 U
Since the flexible budget net operating income is greater than the planning budget, the variance is favorable (F)
10-177
Feiner Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,220 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:
67. The activity variance for personnel expenses in December would be closest to: A. $4,024 F B. $466 F C. $466 U D. $4,024 U
10-178
68. The activity variance for administrative expenses in December would be closest to: A. $8 F B. $162 F C. $162 U D. $8 U
69. The activity variance for net operating income in December would be closest to: A. $690 U B. $9,670 U C. $690 F D. $9,670 F
10-179
Grundhoefer Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During April, the kennel budgeted for 2,000 tenantdays, but its actual level of activity was 1,990 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for April:
70. The activity variance for wages and salaries in April would be closest to: A. $66 F B. $564 U C. $564 F D. $66 U
10-180
71. The activity variance for administrative expenses in April would be closest to: A. $1 F B. $79 F C. $79 U D. $1 U
72. The activity variance for net operating income in April would be closest to: A. $141 U B. $2,651 U C. $2,651 F D. $141 F
Since the flexible budget net operating income is less than the planning budget, the variance is unfavorable (U)
10-181
Gorley Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennel budgeted for 3,900 tenantdays, but its actual level of activity was 3,940 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
73. The activity variance for wages and salaries in February would be closest to: A. $1,152 U B. $1,152 F C. $292 U D. $292 F
10-182
75. The activity variance for net operating income in February would be closest to: A. $368 F B. $368 U C. $632 F D. $632 U
10-183
Enriques Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During February, the company budgeted for 5,000 units, but its actual level of activity was 4,990 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for February:
76. The activity variance for direct labor in February would be closest to: A. $61 U B. $1,081 U C. $61 F D. $1,081 F
10-184
77. The activity variance for selling and administrative expenses in February would be closest to: A. $1,308 F B. $1,308 U C. $2 U D. $2 F
78. The activity variance for net operating income in February would be closest to: A. $2,716 F B. $2,716 U C. $176 U D. $176 F
10-185
Palczewski Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During December, the company budgeted for 5,000 units, but its actual level of activity was 4,980 units. The company has provided the following data concerning the formulas to be used in its budgeting:
79. The activity variance for direct labor in December would be closest to: A. $180 U B. $70 F C. $70 U D. $180 F
10-186
80. The activity variance for selling and administrative expenses in December would be closest to: A. $14 U B. $14 F C. $1,206 F D. $1,206 U
81. The activity variance for net operating income in December would be closest to: A. $2,372 U B. $328 F C. $2,372 F D. $328 U
10-187
Burget Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,110 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July:
82. The revenue variance for July would be closest to: A. $2,581 F B. $2,110 U C. $2,110 F D. $2,581 U
Since the actual revenue is greater than the flexible budget, the variance is favorable (F)
10-188
83. The spending variance for medical supplies in July would be closest to: A. $580 U B. $645 U C. $645 F D. $580 F
84. The spending variance for occupancy expenses in July would be closest to: A. $265 F B. $280 U C. $280 F D. $265 U
10-189
85. The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for July would be closest to: A. $4,508 F B. $4,290 U C. $4,290 F D. $4,508 U
Since the actual net operating income is greater than the flexible budget, the variance is favorable (F)
10-190
Razor Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During November, the kennel budgeted for 3,000 tenantdays, but its actual level of activity was 3,010 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:
86. The revenue variance for November would be closest to: A. $1,607 U B. $1,910 U C. $1,607 F D. $1,910 F
Since the actual revenue is less than the flexible budget, the variance is unfavorable (U)
10-191
87. The spending variance for expendables in November would be closest to: A. $240 F B. $354 F C. $240 U D. $354 U
88. The spending variance for facility expenses in November would be closest to: A. $416 U B. $416 F C. $390 F D. $390 U
10-192
89. The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for November would be closest to: A. $3,520 F B. $3,428 U C. $3,520 U D. $3,428 F
Since the actual net operating income is less than the flexible budget, the variance is unfavorable (U)
10-193
Vandall Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During April, the company budgeted for 7,300 units, but its actual level of activity was 7,340 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April:
90. The revenue variance for April would be closest to: A. $4,274 F B. $5,690 F C. $5,690 U D. $4,274 U
10-194
91. The spending variance for direct materials in April would be closest to: A. $210 U B. $210 F C. $426 U D. $426 F
92. The spending variance for manufacturing overhead in April would be closest to: A. $1,600 U B. $1,648 F C. $1,600 F D. $1,648 U
10-195
93. The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for April would be closest to: A. $6,144 F B. $6,740 U C. $6,740 F D. $6,144 U
10-196
Moorhouse Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,690 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:
94. The personnel expenses in the planning budget for December would be closest to: A. $51,009 B. $51,147 C. $53,370 D. $53,299 $27,100 + $7.10 x 3,700 = $53,370
10-197
95. The medical supplies in the flexible budget for December would be closest to: A. $18,150 B. $17,472 C. $17,378 D. $18,105 $1,500 + $4.50 x 3,690 = $18,105
96. The activity variance for personnel expenses in December would be closest to: A. $2,361 U B. $71 U C. $71 F D. $2,361 F
10-198
97. The revenue variance for December would be closest to: A. $3,680 U B. $3,429 F C. $3,429 U D. $3,680 F
Since the actual revenue is greater than the flexible budget, the variance is favorable (F)
98. The spending variance for medical supplies in December would be closest to: A. $680 F B. $680 U C. $725 U D. $725 F
10-199
Cotty Clinic uses client-visits as its measure of activity. During March, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 2,970 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for March:
99. The administrative expenses in the planning budget for March would be closest to: A. $6,288 B. $6,300 C. $6,418 D. $6,483 $5,100 + $0.40 x 3,000 = $6,300
10-200
100. The occupancy expenses in the flexible budget for March would be closest to: A. $13,400 B. $12,770 C. $13,349 D. $13,029 $8,300 + $1.70 x 2,970 = $13,349
101. The activity variance for administrative expenses in March would be closest to: A. $118 U B. $12 F C. $118 F D. $12 U
10-201
102. The spending variance for medical supplies in March would be closest to: A. $1,050 U B. $1,050 F C. $1,263 F D. $1,263 U
Murphree Clinic uses client-visits as its measure of activity. During April, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,350 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for April:
10-202

103. The net operating income in the planning budget for April would be closest to: A. $14,425 B. $19,519 C. $13,550 D. $20,115
10-203
105. The activity variance for net operating income in April would be closest to: A. $875 F B. $6,265 F C. $875 U D. $6,265 U
10-204
106. The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for April would be closest to: A. $5,390 F B. $6,265 U C. $5,390 U D. $6,265 F
10-205
Henkel Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,600 client-visits, but its actual level of activity was 3,550 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November:
107. The personnel expenses in the planning budget for November would be closest to: A. $74,120 B. $71,432 C. $70,440 D. $74,640 $37,200 + $10.40 x 3,600 = $74,640
10-206
108. The occupancy expenses in the flexible budget for November would be closest to: A. $14,422 B. $14,831 C. $15,325 D. $15,400 $10,000 + $1.50 x 3,550 = $15,325
109. The activity variance for administrative expenses in November would be closest to: A. $215 U B. $215 F C. $5 F D. $5 U
10-207
110. The spending variance for occupancy expenses in November would be closest to: A. $775 U B. $700 F C. $775 F D. $700 U
Hoeper Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,600 client-visits, but its actual level of activity was 2,570 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:
10-208

111. The administrative expenses in the planning budget for January would be closest to: A. $5,047 B. $4,960 C. $5,106 D. $4,957 $4,700 + $0.10 x 2,600 = $4,960
112. The medical supplies in the flexible budget for January would be closest to: A. $19,733 B. $18,932 C. $19,940 D. $19,377 $2,000 + $6.90 x 2,570 = $19,733
10-209
113. The activity variance for personnel expenses in January would be closest to: A. $1,416 U B. $486 F C. $1,416 F D. $486 U
114. The spending variance for medical supplies in January would be closest to: A. $787 F B. $787 U C. $580 F D. $580 U
10-210
Legard Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During January, the kennel budgeted for 2,600 tenantdays, but its actual level of activity was 2,620 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January:
115. The wages and salaries in the planning budget for January would be closest to: A. $24,040 B. $23,755 C. $23,938 D. $24,198 $3,500 + $7.90 x 2,600 = $24,040
10-211
116. The expendables in the flexible budget for January would be closest to: A. $35,946 B. $36,704 C. $35,680 D. $37,271 $1,100 + $13.30 x 2,620 = $35,946
117. The activity variance for wages and salaries in January would be closest to: A. $158 F B. $158 U C. $102 U D. $102 F
10-212
118. The revenue variance for January would be closest to: A. $750 U B. $40 U C. $40 F D. $750 F
119. The spending variance for expendables in January would be closest to: A. $1,040 F B. $1,306 F C. $1,040 U D. $1,306 U
10-213
Drabant Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennel budgeted for 2,000 tenantdays, but its actual level of activity was 2,040 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:
120. The administrative expenses in the planning budget for February would be closest to: A. $7,500 B. $7,252 C. $7,110 D. $7,512 $6,900 + $0.30 x 2,000 = $7,500
10-214
121. The facility expenses in the flexible budget for February would be closest to: A. $13,700 B. $13,401 C. $13,788 D. $12,880 $9,300 + $2.20 x 2,040 = $13,788
122. The activity variance for administrative expenses in February would be closest to: A. $248 U B. $248 F C. $12 U D. $12 F
10-215
123. The spending variance for expendables in February would be closest to: A. $836 F B. $1,360 F C. $836 U D. $1,360 U
Tosta Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During May, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,050 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:
10-216

10-217
126. The activity variance for net operating income in May would be closest to: A. $2,770 U B. $720 U C. $720 F D. $2,770 F
10-218
127. The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for May would be closest to: A. $3,490 F B. $2,770 F C. $3,490 U D. $2,770 U
10-219
Stent Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 2,950 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:
128. The wages and salaries in the planning budget for February would be closest to: A. $22,670 B. $24,183 C. $23,780 D. $23,000 $3,200 + $6.60 x 3,000 = $23,000
10-220
10-221
131. The spending variance for facility expenses in February would be closest to: A. $130 U B. $130 F C. $5 U D. $5 F
Rippelmeyer Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During June, the kennel budgeted for 3,600 tenantdays, but its actual level of activity was 3,550 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June:
10-222

132. The administrative expenses in the planning budget for June would be closest to: A. $7,996 B. $7,885 C. $7,555 D. $7,560 $7,200 + $0.10 x 3,600 = $7,560
133. The expendables in the flexible budget for June would be closest to: A. $33,666 B. $34,270 C. $34,740 D. $34,621 $900 + $9.40 x 3,550 = $34,270
10-223
134. The activity variance for wages and salaries in June would be closest to: A. $310 F B. $110 F C. $310 U D. $110 U
135. The spending variance for expendables in June would be closest to: A. $130 F B. $600 U C. $130 U D. $600 F
10-224
Baugus Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 6,900 units, but its actual level of activity was 6,950 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August:
136. The direct labor in the planning budget for August would be closest to: A. $27,760 B. $29,190 C. $27,560 D. $28,980 $0 + $4.20 x 6,900 = $28,980
10-225
137. The direct materials in the flexible budget for August would be closest to: A. $127,650 B. $128,575 C. $127,581 D. $129,436 $0 + $18.50 x 6,950 = $128,575
138. The activity variance for direct labor in August would be closest to: A. $1,220 F B. $210 U C. $210 F D. $1,220 U
10-226
139. The revenue variance for August would be closest to: A. $1,450 F B. $1,450 U C. $430 F D. $430 U
140. The spending variance for direct materials in August would be closest to: A. $70 F B. $855 U C. $70 U D. $855 F
10-227
Lampert Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During March, the company budgeted for 6,100 units, but its actual level of activity was 6,060 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for March:
141. The selling and administrative expenses in the planning budget for March would be closest to: A. $26,560 B. $27,647 C. $27,466 D. $26,536 $22,900 + $0.60 x 6,100 = $26,560
10-228
142. The manufacturing overhead in the flexible budget for March would be closest to: A. $48,822 B. $51,384 C. $51,440 D. $49,468 $42,900 + $1.40 x 6,060 = $51,384
143. The activity variance for selling and administrative expenses in March would be closest to: A. $906 U B. $906 F C. $24 U D. $24 F
10-229
144. The spending variance for direct materials in March would be closest to: A. $900 F B. $900 U C. $1,376 U D. $1,376 F
Woofter Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 7,600 units, but its actual level of activity was 7,560 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:
10-230

145. The net operating income in the planning budget for January would be closest to: A. $16,410 B. $16,238 C. $28,604 D. $29,140
146. The net operating income in the flexible budget for January would be closest to: A. $28,604 B. $16,238 C. $16,410 D. $29,140
10-231
147. The activity variance for net operating income in January would be closest to: A. $12,816 F B. $12,816 U C. $536 F D. $536 U
10-232
148. The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for January would be closest to: A. $12,816 F B. $12,280 U C. $12,816 U D. $12,280 F
10-233
Buffaloe Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 5,200 units, but its actual level of activity was 5,250 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August:
149. The direct labor in the planning budget for August would be closest to: A. $40,040 B. $41,015 C. $40,425 D. $40,624 $0 + $7.70 x 5,200 = $40,040
10-234
150. The manufacturing overhead in the flexible budget for August would be closest to: A. $53,919 B. $55,525 C. $52,896 D. $55,460 $48,700 + $1.30 x 5,250 = $55,525
151. The activity variance for selling and administrative expenses in August would be closest to: A. $690 F B. $690 U C. $20 F D. $20 U
10-235
152. The spending variance for manufacturing overhead in August would be closest to: A. $2,055 F B. $2,055 U C. $2,120 U D. $2,120 F
Luc Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During February, the company budgeted for 5,000 units, but its actual level of activity was 4,950 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for February:
10-236

153. The selling and administrative expenses in the planning budget for February would be closest to: A. $30,490 B. $30,495 C. $30,500 D. $30,190 $29,500 + $0.20 x 5,000 = $30,500
154. The direct materials in the flexible budget for February would be closest to: A. $91,575 B. $95,985 C. $92,500 D. $94,075 $0 + $18.50 x 4,950 = $91,575
10-237
155. The activity variance for direct labor in February would be closest to: A. $340 U B. $760 F C. $340 F D. $760 U
156. The spending variance for direct materials in February would be closest to: A. $3,450 F B. $2,525 U C. $3,450 U D. $2,525 F
10-238
Worden Hospital bases its budgets on patient-visits. The hospital's static budget for February appears below:
157. The total variable cost at the activity level of 4,400 patient-visits per month should be: A. $85,140 B. $87,120 C. $65,120 D. $63,640 Total variable cost = ($6.10 + $8.70) x 4,400 = $65,120
158. The total fixed cost at the activity level of 4,700 patient-visits per month should be: A. $162,620 B. $148,780 C. $93,060 D. $85,140 Total fixed cost = $33,110 + $52,030 = $85,140
10-239
159. The total cost at the activity level of 4,600 patient-visits per month should be: A. $153,720 B. $148,780 C. $153,220 D. $159,160 Total fixed cost = $33,110 + $52,030 = $85,140 Total cost = [($6.10 + $8.70) x 4,600] + $85,140 = $153,220
Dwelmont Hotel bases its budgets on guest-days. The hotel's static budget for May appears below:
10-240

160. The total variable cost at the activity level of 2,600 guest-days per month should be: A. $36,920 B. $32,660 C. $45,540 D. $51,480 Total variable cost = ($8.30 + $5.90) x 2,600 = $36,920
161. The total fixed cost at the activity level of 2,900 guest-days per month should be: A. $78,200 B. $57,420 C. $98,600 D. $45,540 Total fixed cost = $27,830 + $17,710 = $45,540
162. The total cost at the activity level of 2,800 guest-days per month should be: A. $95,200 B. $86,230 C. $85,300 D. $78,200 Total fixed cost = $27,830 + $17,710 = $45,540 Total cost = [($8.30 + $5.90) x 2,800] + $45,540 = $85,300
10-241
Springmeyer Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,940 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August:
163. The personnel expenses in the planning budget for August would be closest to: A. $69,600 B. $73,800 C. $70,560 D. $73,200 $29,700 + $15 x 2,900 = $73,200
10-242
164. The administrative expenses in the planning budget for August would be closest to: A. $7,594 B. $7,590 C. $7,165 D. $7,264 $7,300 + $0.10 x 2,900 = $7,590
10-243
Weisgarber Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 3,900 client-visits, but its actual level of activity was 3,850 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for August:
166. The personnel expenses in the planning budget for August would be closest to: A. $83,940 B. $88,444 C. $83,310 D. $87,310 $34,800 + $12.60 x 3,900 = $83,940
167. The administrative expenses in the planning budget for August would be closest to: A. $7,780 B. $8,144 C. $8,040 D. $7,770 $7,000 + $0.20 x 3,900 = $7,780
10-244
Smithson Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,270 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for May:
10-245

169. The medical supplies in the flexible budget for May would be closest to: A. $14,907 B. $15,488 C. $15,207 D. $15,030 $1,500 + $4.10 x 3,270 = $14,907
170. The occupancy expenses in the flexible budget for May would be closest to: A. $14,334 B. $13,840 C. $13,786 D. $14,599 $7,900 + $1.80 x 3,270 = $13,786
10-246
Mah Clinic uses client-visits as its measure of activity. During April, the clinic budgeted for 3,800 client-visits, but its actual level of activity was 3,750 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:
10-247

172. The medical supplies in the flexible budget for April would be closest to: A. $21,340 B. $22,600 C. $22,325 D. $21,913 $1,700 + $5.50 x 3,750 = $22,325
173. The occupancy expenses in the flexible budget for April would be closest to: A. $15,575 B. $15,660 C. $14,975 D. $15,377 $9,200 + $1.70 x 3,750 = $15,575
10-248
Lauser Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,690 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July:
10-249

175. The personnel expenses in the planning budget for July would be closest to: A. $54,730 B. $54,641 C. $52,341 D. $52,483 $21,800 + $8.90 x 3,700 = $54,730
176. The occupancy expenses in the flexible budget for July would be closest to: A. $12,466 B. $12,991 C. $12,921 D. $12,480 $7,300 + $1.40 x 3,690 = $12,466
10-250
Higgenbotham Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 3,600 client-visits, but its actual level of activity was 3,580 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for May:
10-251

178. The administrative expenses in the planning budget for May would be closest to: A. $5,261 B. $5,440 C. $5,232 D. $5,432 $4,000 + $0.40 x 3,600 = $5,440
10-252
180. The medical supplies in the flexible budget for May would be closest to: A. $20,164 B. $19,340 C. $19,941 D. $19,242 $1,700 + $4.90 x 3,580 = $19,242
Jauron Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During September, the kennel budgeted for 2,300 tenantdays, but its actual level of activity was 2,310 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for September:
10-253

181. The wages and salaries in the planning budget for September would be closest to: A. $13,741 B. $13,682 C. $13,781 D. $13,730 $2,000 + $5.10 x 2,300 = $13,730
182. The administrative expenses in the planning budget for September would be closest to: A. $7,362 B. $7,181 C. $7,360 D. $7,212 $6,900 + $0.20 x 2,300 = $7,360
10-254
183. The net operating income in the planning budget for September would be closest to: A. $10,772 B. $6,979 C. $10,866 D. $6,870
Lutts Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During November, the kennel budgeted for 3,800 tenant-days, but its actual level of activity was 3,850 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
10-255

184. The wages and salaries in the planning budget for November would be closest to: A. $27,610 B. $27,280 C. $28,238 D. $28,610 $2,200 + $6.60 x 3,800 = $27,280
185. The administrative expenses in the planning budget for November would be closest to: A. $7,310 B. $7,520 C. $7,540 D. $7,215 $6,000 + $0.40 x 3,800 = $7,520
10-256
Swader Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During March, the kennel budgeted for 2,900 tenant-days, but its actual level of activity was 2,930 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March:
10-257

187. The expendables in the flexible budget for March would be closest to: A. $25,905 B. $25,650 C. $27,274 D. $26,719 $1,000 + $8.50 x 2,930 = $25,905
188. The facility expenses in the flexible budget for March would be closest to: A. $20,700 B. $20,369 C. $20,793 D. $20,820 $9,100 + $4 x 2,930 = $20,820
10-258
189. The net operating income in the flexible budget for March would be closest to: A. $12,522 B. $12,267 C. $9,414 D. $9,120
Whetstine Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During September, the kennel budgeted for 3,200 tenant-days, but its actual level of activity was 3,180 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
10-259

190. The expendables in the flexible budget for September would be closest to: A. $27,630 B. $27,864 C. $27,517 D. $27,800 $600 + $8.50 x 3,180 = $27,630
191. The facility expenses in the flexible budget for September would be closest to: A. $21,320 B. $21,238 C. $21,513 D. $21,784 $8,200 + $4.10 x 3,180 = $21,238
10-260
192. The net operating income in the flexible budget for September would be closest to: A. $8,548 B. $4,967 C. $5,029 D. $8,720
Kalinowski Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennel budgeted for 2,300 tenant-days, but its actual level of activity was 2,320 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:
10-261

193. The wages and salaries in the planning budget for February would be closest to: A. $15,570 B. $16,197 C. $16,338 D. $15,688 $2,000 + $5.90 x 2,300 = $15,570
10-262
195. The net operating income in the flexible budget for February would be closest to: A. $10,370 B. $10,608 C. $7,642 D. $7,775
Laboe Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennel budgeted for 2,900 tenantdays, but its actual level of activity was 2,940 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
10-263

196. The administrative expenses in the planning budget for February would be closest to: A. $7,814 B. $7,770 C. $7,922 D. $7,782 $6,900 + $0.30 x 2,900 = $7,770
197. The net operating income in the planning budget for February would be closest to: A. $7,191 B. $7,391 C. $7,900 D. $8,260
10-264
198. The expendables in the flexible budget for February would be closest to: A. $26,990 B. $27,354 C. $27,021 D. $27,772 $600 + $9.10 x 2,940 = $27,354
Dantuono Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During November, the company budgeted for 7,700 units, but its actual level of activity was 7,720 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for November:
10-265

199. The direct labor in the planning budget for November would be closest to: A. $44,004 B. $42,744 C. $42,633 D. $43,890 $0 + $5.70 x 7,700 = $43,890
200. The selling and administrative expenses in the planning budget for November would be closest to: A. $30,490 B. $29,974 C. $30,504 D. $29,896 $25,100 + $0.70 x 7,700 = $30,490
10-266
Menson Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During December, the company budgeted for 5,800 units, but its actual level of activity was 5,830 units. The company has provided the following data concerning the formulas to be used in its budgeting:
10-267

202. The direct labor in the planning budget for December would be closest to: A. $46,057 B. $45,820 C. $43,927 D. $43,701 $0 + $7.90 x 5,800 = $45,820
203. The selling and administrative expenses in the planning budget for December would be closest to: A. $24,898 B. $24,880 C. $23,988 D. $23,865 $21,400 + $0.60 x 5,800 = $24,880
10-268
204. The net operating income in the planning budget for December would be closest to: A. $19,788 B. $24,979 C. $19,380 D. $25,238
Nasson Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 6,700 units, but its actual level of activity was 6,730 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August:
10-269

205. The direct materials in the flexible budget for August would be closest to: A. $71,020 B. $71,338 C. $72,913 D. $72,264 $0 + $10.60 x 6,730 = $71,338
206. The manufacturing overhead in the flexible budget for August would be closest to: A. $55,358 B. $55,855 C. $55,076 D. $55,040 $47,000 + $1.20 x 6,730 = $55,076
10-270
207. The net operating income in the flexible budget for August would be closest to: A. $22,506 B. $18,317 C. $17,930 D. $22,708
Poulsen Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 7,300 units, but its actual level of activity was 7,270 units. The company has provided the following data concerning the formulas to be used in its budgeting:
10-271

208. The direct materials in the flexible budget for July would be closest to: A. $68,338 B. $70,298 C. $68,620 D. $70,879 $0 + $9.40 x 7,270 = $68,338
209. The manufacturing overhead in the flexible budget for July would be closest to: A. $47,190 B. $47,151 C. $45,344 D. $45,719 $37,700 + $1.30 x 7,270 = $47,151
10-272
Witherington Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 7,800 units, but its actual level of activity was 7,850 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June:
10-273

211. The direct labor in the planning budget for June would be closest to: A. $32,970 B. $32,760 C. $34,310 D. $34,091 $0 + $4.20 x 7,800 = $32,760
212. The manufacturing overhead in the flexible budget for June would be closest to: A. $57,435 B. $54,794 C. $57,380 D. $55,498 $48,800 + $1.10 x 7,850 = $57,435
10-274
213. The net operating income in the flexible budget for June would be closest to: A. $34,017 B. $33,585 C. $29,520 D. $30,190
Manago Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During March, the company budgeted for 5,300 units, but its actual level of activity was 5,310 units. The company has provided the following data concerning the formulas to be used in its budgeting:|
10-275

214. The selling and administrative expenses in the planning budget for March would be closest to: A. $25,640 B. $26,199 C. $26,248 D. $25,648 $21,400 + $0.80 x 5,300 = $25,640
215. The net operating income in the planning budget for March would be closest to: A. $11,705 B. $21,877 C. $21,710 D. $11,749
10-276
216. The direct materials in the flexible budget for March would be closest to: A. $73,278 B. $73,929 C. $73,140 D. $74,208 $0 + $13.80 x 5,310 = $73,278
Bessey Hospital bases its budgets on patient-visits. The hospital's static planning budget for January appears below:
10-277

217. The spending variance for supplies costs in the flexible budget performance report for the month is: A. $4,180 F B. $4,180 U C. $2,560 F D. $2,560 U
218. The spending variance for laundry costs in the flexible budget performance report for the month is: A. $730 F B. $2,470 F C. $730 U D. $2,470 U
10-278
219. The spending variance for occupancy costs in the flexible budget performance report for the month is: A. $330 F B. $2,090 F C. $330 U D. $2,090 U
Salling Corporation bases its budgets on machine-hours. The company's static planning budget for May appears below:
10-279

220. The spending variance for supplies costs in the flexible budget performance report for the month should be: A. $1,340 U B. $1,340 F C. $460 U D. $460 F
221. The spending variance for power costs in the flexible budget performance report for the month should be: A. $310 U B. $310 F C. $820 U D. $820 F
10-280
222. The spending variance for equipment depreciation in the flexible budget performance report for the month should be: A. $540 F B. $10 F C. $10 U D. $540 U
Genito Corporation's static planning budget for October appears below. The company bases its budgets on machine-hours.
In October, the actual number of machine-hours was 8,800, the actual supplies cost was $69,450, the actual power cost was $34,190, the actual salaries cost was $86,490, and the actual equipment depreciation was $37,600.
10-281

223. The spending variance for supplies cost in the flexible budget performance report for the month should be: A. $4,500 F B. $7,110 F C. $7,110 U D. $4,500 U
224. The spending variance for power cost in the flexible budget performance report for the month should be: A. $1,510 F B. $2,770 U C. $1,510 U D. $2,770 F
10-282
225. The spending variance for equipment depreciation in the flexible budget performance report for the month should be: A. $200 U B. $1,120 F C. $200 F D. $1,120 U
Lauter Printing uses two measures of activity, press runs and book set-ups, in the cost formulas in its budgets and performance reports. The cost formula for wages and salaries is $5,300 per month plus $480 per press run plus $1,080 per book set-up. The company expected its activity in October to be 169 press runs and 64 book set-ups, but the actual activity was 167 press runs and 60 book set-ups. The actual cost for wages and salaries in October was $155,690.
226. The wages and salaries in the planning budget for October would be closest to: A. $157,555 B. $155,690 C. $150,260 D. $155,540 $5,300 + $480 x 169 + $1,080 x 64 = $155,540
10-283
227. The wages and salaries in the flexible budget for October would be closest to: A. $155,540 B. $155,690 C. $150,260 D. $153,699 $5,300 + $480 x 167 + $1,080 x 60 = $150,260
228. The activity variance for wages and salaries in October would be closest to: A. $5,280 U B. $150 U C. $150 F D. $5,280 F
10-284
229. The spending variance for wages and salaries in October would be closest to: A. $5,430 U B. $150 U C. $5,430 F D. $150 F
Spraque 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 $40,520 per month plus $2,733 per flight plus $11 per passenger. The company expected its activity in June to be 71 flights and 207 passengers, but the actual activity was 70 flights and 205 passengers. The actual cost for plane operating costs in June was $239,580.
230. The plane operating costs in the planning budget for June would be closest to: A. $239,580 B. $236,840 C. $234,085 D. $243,003 $40,520 + $2,733 x 71 + $11 x 207 = $236,840
10-285
231. The plane operating costs in the flexible budget for June would be closest to: A. $233,504 B. $234,085 C. $239,580 D. $236,840 $40,520 + $2,733 x 70 + $11 x 205 = $234,085
232. The activity variance for plane operating costs in June would be closest to: A. $2,755 U B. $2,755 F C. $2,740 F D. $2,740 U
10-286
233. The spending variance for plane operating costs in June would be closest to: A. $2,740 U B. $5,495 U C. $5,495 F D. $2,740 F
10-287
Essay Questions 234. Immen Corporation bases its budgets on the activity measure customers served. During May, the company planned to serve 38,000 customers. The company has provided the following data concerning the formulas its uses in its budgeting:
The company has also furnished its income statement for May:
Required: Prepare a report showing the company's activity variances for May. Indicate in each case whether the variance is favorable (F) or unfavorable (U).
10-288
10-289
235. Faggs Corporation bases its budgets on the activity measure customers served. During December, the company planned to serve 33,000 customers, but actually served 36,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:
Required: Prepare a report showing the company's activity variances for December. Indicate in each case whether the variance is favorable (F) or unfavorable (U).
10-290
236. Brynteson Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 24,000 customers, but actually served 19,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $2.90q Wages and salaries: $24,700 + $0.90q Supplies: $0.40q Insurance: $4,900 Miscellaneous: $2,800 + $0.10q Required: Prepare a report showing the company's activity variances for September. Indicate in each case whether the variance is favorable (F) or unfavorable (U).
10-291
237. Domin Corporation bases its budgets on the activity measure customers served. During April, the company planned to serve 31,000 customers, but actually served 35,000 customers. Revenue is $4.80 per customer served. Wages and salaries are $33,000 per month plus $1.60 per customer served. Supplies are $1.00 per customer served. Insurance is $12,200 per month. Miscellaneous expenses are $7,400 per month plus $0.20 per customer served. Required: Prepare a report showing the company's activity variances for April. Indicate in each case whether the variance is favorable (F) or unfavorable (U).
10-292
238. Fasano Clinic bases its budgets on the activity measure patient-visits. During April, the clinic planned for 3,800 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting:
The clinic has also furnished its income statement for April:
Required: Prepare a report showing the clinic's activity variances for April.
10-293
10-294
239. Mulvehill Clinic bases its budgets on the activity measure patient-visits. During June, the clinic planned for 3,000 patient-visits, but the actual level of activity was 3,400 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting:
Required: Prepare a report showing the clinic's activity variances for June. Indicate in each case whether the variance is favorable (F) or unfavorable (U).
10-295

10-296
240. Mccarter Clinic bases its budgets on the activity measure patient-visits. During April, the clinic planned for 2,700 patient-visits, but its actual level of activity was 2,400 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting:
Required: Prepare a report showing the clinic's activity variances for April. Indicate in each case whether the variance is favorable (F) or unfavorable (U).
10-297

10-298
241. Delamarter Clinic bases its budgets on the activity measure patient-visits. During June, the clinic planned for 2,600 patient-visits, but its actual level of activity was 3,100 patient-visits. Revenue should be $53.40 per patient-visit. Personnel expenses should be $39,700 per month plus $12.60 per patient-visit. Medical supplies should be $1,800 per month plus $10.40 per patient-visit. Occupancy expenses should be $8,200 per month plus $2.30 per patient-visit. Administrative expenses should be $6,100 per month plus $0.20 per patient-visit. Required: Prepare a report showing the clinic's activity variances for June. Indicate in each case whether the variance is favorable (F) or unfavorable (U).
10-299
242. Alicuben Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for October was based on 2,200 meals, but the diner actually served 2,000 meals. The diner's director has provided the following cost formulas to use in budgets:
Required: Prepare a report showing the activity variances for each of the expenses and for total expenses for October. Label each variance as favorable (F) or unfavorable (U).
10-300
10-301
243. Aslanian Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for November was based on 2,200 meals, but the diner actually served 2,700 meals. The diner's director has provided the following cost formulas to use in budgets:
Required: Prepare a report showing the activity variances for each of the expenses and for total expenses for November. Label each variance as favorable (F) or unfavorable (U). Label each variance as favorable (F) or unfavorable (U).
10-302
244. Mulry Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for September was based on 3,000 meals, but the diner actually served 2,800 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.45 per meal; kitchen operations, $4,900 per month plus $1.65 per meal; administrative expenses, $3,600 per month plus $0.60 per meal; and fundraising expenses, $1,200 per month. The director has also provided the diner's statement of actual expenses for the month:
Required: Prepare a report showing the activity variances for each of the expenses and for total expenses for September.
10-303

245. Flicker Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for December was based on 2,400 meals, but the diner actually served 2,300 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.00 per meal; kitchen operations, $5,100 per month plus $1.85 per meal; administrative expenses, $2,900 per month plus $0.65 per meal; and fundraising expenses, $1,000 per month. Required: Prepare a report showing the activity variances for each of the expenses and for total expenses for December. Label each variance as favorable (F) or unfavorable (U).
10-304
246. Lakey Corporation uses customers served as its measure of activity. During July, the company budgeted for 33,000 customers, but actually served 34,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for July:
Required: Prepare a report showing the company's revenue and spending variances for July. Label each variance as favorable (F) or unfavorable (U).
10-305
10-306
247. Mieras Corporation uses customers served as its measure of activity. During January, the company budgeted for 37,000 customers, but actually served 36,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $2.80q Wages and salaries: $22,800 + $0.90q Supplies: $0.50q Insurance: $7,500 Miscellaneous: $3,800 + $0.30q The company reported the following actual results for January:
Required: Prepare a report showing the company's revenue and spending variances for January. Label each variance as favorable (F) or unfavorable (U).
10-307

10-308
248. Fuquay Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $4.80 per customer served. Wages and salaries should be $26,500 per month plus $1.70 per customer served. Supplies should be $0.90 per customer served. Insurance should be $7,100 per month. Miscellaneous expenses should be $4,700 per month plus $0.20 per customer served. The company reported the following actual results for May:
Required: Prepare a report showing the company's revenue and spending variances for May. Label each variance as favorable (F) or unfavorable (U).
10-309

10-310
249. Kary Clinic uses patient-visits as its measure of activity. During May, the clinic budgeted for 3,800 patient-visits, but its actual level of activity was 4,100 patient-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for May:
Required: Prepare a report showing the clinic's revenue and spending variances for May. Label each variance as favorable (F) or unfavorable (U).
10-311
10-312
250. Gasco Clinic uses patient-visits as its measure of activity. During August, the clinic budgeted for 2,000 patient-visits, but its actual level of activity was 2,100 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits: Revenue: $62.90q Personnel expenses: $28,500 + $20.40q Medical supplies: $1,400 + $9.90q Occupancy expenses: $8,200 + $3.30q Administrative expenses: $4,000 + $0.40q The clinic reported the following actual results for August:
Required: Prepare a report showing the clinic's revenue and spending variances for August. Label each variance as favorable (F) or unfavorable (U).
10-313
10-314
251. Braseth Clinic uses patient-visits as its measure of activity. The clinic bases its budgets on the following information: Revenue should be $39.90 per patient-visit. Personnel expenses should be $35,400 per month plus $13.00 per patient-visit. Medical supplies should be $1,100 per month plus $4.90 per patient-visit. Occupancy expenses should be $8,400 per month plus $2.00 per patient-visit. Administrative expenses should be $4,700 per month plus $0.20 per patient-visit. The clinic reported the following actual results for January:
Required: Prepare a report showing the clinic's revenue and spending variances for January. Label each variance as favorable (F) or unfavorable (U).
10-315

10-316
252. Villella Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for October was based on 3,800 meals. The diner's director has provided the following cost formulas to use in budgets:
Required: Prepare a report showing the spending variances for each of the expenses and for total expenses for October. Label each variance as favorable (F) or unfavorable (U).
10-317
10-318
253. Garing Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for March was based on 3,600 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.20 per meal; kitchen operations, $4,300 per month plus $1.90 per meal; administrative expenses, $3,300 per month plus $0.20 per meal; and fundraising expenses, $1,000 per month. The director has also provided the diner's statement of actual expenses for the month:
Required: Prepare a report showing the diner's spending variances for each of the expenses and for total expenses for March. Label each variance as favorable (F) or unfavorable (U).
10-319

10-320
254. Legorreta Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of November:
Required: Prepare the company's flexible budget performance report for November. Label each variance as favorable (F) or unfavorable (U).
10-321
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 1 Learning Objective: 4 Learning Objective: 6 Level: Medium
10-322
255. Duell Clinic uses patient-visits as its measure of activity. The following report compares the planning budget to the actual operating results for the month of January:
Required: Prepare the clinic's flexible budget performance report for January. Label each variance as favorable (F) or unfavorable (U).
10-323
10-324

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 1 Learning Objective: 4 Learning Objective: 6 Level: Medium
10-325
256. Squillace Corporation uses customers served as its measure of activity. During October, the company budgeted for 38,000 customers, but actually served 35,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:
Required: Prepare the company's flexible budget performance report for October. Label each variance as favorable (F) or unfavorable (U).
10-326
10-327
257. Guy Corporation uses customers served as its measure of activity. During January, the company budgeted for 32,000 customers, but actually served 35,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.20q Wages and salaries: $33,900 + $1.40q Supplies: $0.60q Insurance: $10,000 Miscellaneous: $7,000 + $0.40q The company reported the following actual results for January:
Required: Prepare the company's flexible budget performance report for January. Label each variance as favorable (F) or unfavorable (U).
10-328
10-329
258. Cotillo Corporation uses customers served as its measure of activity. During December, the company budgeted for 29,000 customers, but actually served 27,000 customers. The company bases its budgets on the following information: Revenue should be $4.40 per customer served. Wages and salaries should be $33,300 per month plus $1.80 per customer served. Supplies should be $0.60 per customer served. Insurance should be $8,900 per month. Miscellaneous expenses should be $4,600 per month plus $0.10 per customer served. The company reported the following actual results for December:
Required: Prepare the company's flexible budget performance report for December. Label each variance as favorable (F) or unfavorable (U).
10-330
10-331
259. Thews Clinic uses patient-visits as its measure of activity. During August, the clinic budgeted for 2,000 patient-visits, but its actual level of activity was 2,200 patient-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August:
Required: Prepare the clinic's flexible budget performance report for August. Label each variance as favorable (F) or unfavorable (U).
10-332
10-333
260. Mcgannon Clinic uses patient-visits as its measure of activity. During November, the clinic budgeted for 3,700 patient-visits, but its actual level of activity was 4,100 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits: Revenue: $23.90q Personnel expenses: $20,800 + $7.90q Medical supplies: $800 + $3.50q Occupancy expenses: $6,100 + $1.30q Administrative expenses: $3,100 + $0.10q The clinic reported the following actual results for November:
Required: Prepare the clinic's flexible budget performance report for November. Label each variance as favorable (F) or unfavorable (U).
10-334
10-335

10-336
261. Vernon Clinic uses patient-visits as its measure of activity. During February, the clinic budgeted for 3,100 patient-visits, but its actual level of activity was 2,800 patient-visits. The clinic bases its budgets on the following information: Revenue should be $30.20 per patientvisit. Personnel expenses should be $20,600 per month plus $9.70 per patient-visit. Medical supplies should be $1,400 per month plus $5.40 per patient-visit. Occupancy expenses should be $5,700 per month plus $1.50 per patient-visit. Administrative expenses should be $2,500 per month plus $0.30 per patient-visit. The clinic reported the following actual results for February:
Required: Prepare the clinic's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U).
10-337
10-338

10-339
262. Gamon Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for April was based on 3,600 meals. The diner's director has provided the following cost formulas to use in budgets:
10-340
10-341
263. Wrape Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for April was based on 2,100 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.55 per meal; kitchen operations, $4,700 per month plus $1.70 per meal; administrative expenses, $3,300 per month plus $0.60 per meal; and fundraising expenses, $1,000 per month. The director has also provided the diner's statement of actual expenses for the month:
10-342
10-343
264. Hausman Hospital bases its budgets on patient-visits. The hospital's static planning budget for October appears below:
Required: Prepare a flexible budget for 8,900 patient-visits per month.
10-344
265. Turiano Corporation bases its budgets on machine-hours. The company's static planning budget for November appears below:
Required: Prepare a flexible budget for 9,800 machine-hours per month.
10-345
266. Therrien Corporation bases its budgets on the activity measure customers served. During September, the company plans to serve 30,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:
Required: Prepare the company's planning budget for September.
10-346
267. During March, Holston Corporation plans to serve 31,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.60q Wages and salaries: $36,600 + $1.60q Supplies: $0.80q Insurance: $10,900 Miscellaneous: $8,500 + $0.20q Required: Prepare the company's planning budget for March.
10-347
268. During August, Klinck Corporation plans to serve 33,000 customers. Revenue is $2.50 per customer served. Wages and salaries are $24,300 per month plus $0.90 per customer served. Supplies are $0.30 per customer served. Insurance is $7,100 per month. Miscellaneous expenses are $5,200 per month plus $0.10 per customer served. Required: Prepare the company's planning budget for August.
10-348
269. Novielli Corporation bases its budgets on the activity measure customers served. During November, the company planned to serve 39,000 customers, but actually served 44,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:
Required: Prepare the company's flexible budget for November based on the actual level of activity for the month.
10-349
270. During September, Booker Corporation budgeted for 20,000 customers, but actually served 22,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $5.50q Wages and salaries: $28,300 + $1.70q Supplies: $1.00q Insurance: $6,300 Miscellaneous: $5,400 + $0.40q Required: Prepare the company's flexible budget for September based on the actual level of activity for the month.
10-350
271. During July, Bosell Corporation budgeted for 22,000 customers, but actually served 21,000 customers. Revenue should be $6.80 per customer served. Wages and salaries should be $35,900 per month plus $2.40 per customer served. Supplies should be $1.20 per customer served. Insurance should be $12,000 per month. Miscellaneous expenses should be $6,000 per month plus $0.30 per customer served. Required: Prepare the company's flexible budget for July based on the actual level of activity for the month.
10-351
272. Gramling Clinic bases its budgets on patient-visits. During July, the clinic plans for a level of activity of 2,500 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting:
Required: Prepare the clinic's planning budget for July.
10-352
273. During September, Noaks Clinic plans for an activity level of 3,300 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits: Revenue: $30.50q Personnel expenses: $30,900 + $8.40q Medical supplies: $1,200 + $4.50q Occupancy expenses: $6,400 + $1.70q Administrative expenses: $3,700 + $0.10q Required: Prepare the clinic's planning budget for September.
10-353
274. During June, Defee Clinic plans for an activity level of 3,200 patient-visits. Revenue is $50.80 per patient-visit. Personnel expenses are $35,300 per month plus $16.70 per patientvisit. Medical supplies are $1,400 per month plus $8.50 per patient-visit. Occupancy expenses are $12,500 per month plus $2.60 per patient-visit. Administrative expenses are $7,200 per month plus $0.20 per patient-visit. Required: Prepare the clinic's planning budget for June.
10-354
275. Clune Clinic bases its budgets on the activity measure patient-visits. During October, the clinic planned for an activity level of 2,100 patient-visits, but the activity level was actually 2,600 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting:
Required: Prepare the clinic's flexible budget for October based on the actual level of activity for the month.
10-355
276. During October, Moceri Clinic budgeted for 3,000 patient-visits, but its actual level of activity was 3,500 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits: Revenue: $41.80q Personnel expenses: $30,900 + $13.70q Medical supplies: $700 + $7.80q Occupancy expenses: $8,900 + $1.50q Administrative expenses: $3,600 + $0.20q Required: Prepare the clinic's flexible budget for October based on the actual level of activity for the month.
10-356
277. During May, Phong Clinic budgeted for 2,900 patient-visits, but its actual level of activity was 3,100 patient-visits. Revenue should be $31.30 per patient-visit. Personnel expenses should be $23,700 per month plus $8.10 per patient-visit. Medical supplies should be $700 per month plus $6.20 per patient-visit. Occupancy expenses should be $7,000 per month plus $1.50 per patient-visit. Administrative expenses should be $3,400 per month plus $0.40 per patient-visit. Required: Prepare the clinic's flexible budget for May based on the actual level of activity for the month.
10-357
278. Vilanova Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for May is to be based on 2,700 meals. The diner's director has provided the following cost formulas to use in the budget:
Required: Prepare the diner's budget for the month of May. The budget will only contain the costs listed above; no revenues will be on the budget.
10-358
279. Mcduffey Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for September was based on 2,900 meals, but the diner actually served 2,800 meals. The diner's director has provided the following cost formulas to use in budgets:
Required: Prepare the diner's flexible budget for the actual number of meals served in September. The budget will only contain the costs listed above; no revenues will be on the budget.
10-359
280. Korando Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for June is to be based on 2,900 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.60 per meal; kitchen operations, $4,200 per month plus $1.15 per meal; administrative expenses, $2,800 per month plus $0.65 per meal; and fundraising expenses, $1,000 per month. Required: Prepare the diner's budget for the month of June. The budget will only contain the costs listed above; no revenues will be on the budget.
10-360
281. Salvia Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for May was based on 3,400 meals, but the diner actually served 3,700 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.90 per meal; kitchen operations, $4,100 per month plus $1.90 per meal; administrative expenses, $2,400 per month plus $0.20 per meal; and fundraising expenses, $1,000 per month. Required: Prepare the diner's flexible budget for the actual number of meals served in May. The budget will only contain the costs listed above; no revenues will be on the budget.
10-361
282. Alarie Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
In November, the school budgeted for 1,420 students and 139 courses. The actual activity for the month was 1,220 students and 142 courses. Required: Prepare a report showing the school's activity variances for November. Label each variance as favorable (F) or unfavorable (U).
10-362
283. Eisner Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
In October, the school budgeted for 1,490 students and 85 courses. The school's income statement showing the actual results for the month appears below:
Required: Prepare a report showing the school's activity variances for October. Label each variance as favorable (F) or unfavorable (U).
10-363
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 2 Learning Objective: 5 Level: Hard
10-364
284. Bures Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting:
In April, the company budgeted for 360 guests and 134 jeeps. The actual activity for the month was 335 guests and 136 jeeps. Required: Prepare a report showing the company's activity variances for April. Label each variance as favorable (F) or unfavorable (U).
10-365

10-366
285. Mashore Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting:
In April, the company budgeted for 495 guests and 187 jeeps. The company's income statement showing the actual results for the month appears below:
Required: Prepare a report showing the company's activity variances for April. Label each variance as favorable (F) or unfavorable (U).
10-367
10-368
286. Ahrns Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
In July, the school budgeted for 1,770 students and 148 courses. The school's income statement showing the actual results for the month appears below:
Required: Prepare a report showing the school's revenue and spending variances for July. Label each variance as favorable (F) or unfavorable (U).
10-369
10-370
287. Ruvolo Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting:
In February, the company budgeted for 436 guests and 162 jeeps. The company's income statement showing the actual results for the month appears below:
Required: Prepare a report showing the company's revenue and spending variances for February. Label each variance as favorable (F) or unfavorable (U).
10-371
10-372
288. Brink Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
In June, the school budgeted for 1,710 students and 110 courses. The school's income statement showing the actual results for the month appears below:
Required: Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for June. Label each variance as favorable (F) or unfavorable (U).
10-373
10-374
289. Palamino Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting:
In January, the company budgeted for 330 guests and 143 jeeps. The company's income statement showing the actual results for the month appears below:
Required: Prepare a flexible budget performance report showing both the company's activity variances and revenue and spending variances for January. Label each variance as favorable (F) or unfavorable (U).
10-375
10-376
290. Alto Clinic uses patient-visits as its measure of activity. The clinic has provided the following report:
Required: Prepare the clinic's flexible budget performance report for June. Label each variance as favorable (F) or unfavorable (U).
10-377
10-378

291. Drobot Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
In November, the school budgeted for 1,470 students and 126 courses. The actual activity for the month was 1,770 students and 122 courses. Required: Prepare the school's planning budget for November.
10-379
292. Hasselman Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
In January, the school budgeted for 1,110 students and 105 courses. The actual activity for the month was 1,210 students and 103 courses. Required: Prepare the school's flexible budget for the actual level of activity in January.
10-380
293. Lantrip Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting:
In January, the company budgeted for 356 guests and 174 jeeps. The actual activity for the month was 341 guests and 177 jeeps. Required: Prepare the company's planning budget for January.
10-381
294. Karpin Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting:
In July, the company budgeted for 434 guests and 132 jeeps. The actual activity for the month was 459 guests and 137 jeeps. Required: Prepare the company's flexible budget for the actual level of activity in July.
10-382

10 Flexible BUdgets &amp; Performance Analysis

Загружено:

Сведения о документе

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

10 Flexible BUdgets &amp; Performance Analysis

Загружено:

Авторское право:

Доступные форматы

Chapter 010, Flexible Budgets and Performance Analysis

LO4: Flexible budget performance report

LO3: Revenue and spending variances

LO5: More than one cost driver

LO1: Prepare a flexible budget

Professional Exam Adapted

LO2: Activity variances

LO6: Common errors

Chapter 010, Flexible Budgets and Performance Analysis

CIMA, Nov 1996, Stage 2, Operational Cost Accounting , Q1.3

Chapter 010, Flexible Budgets and Performance Analysis

32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 101 102 103 48-51 52-55 56-59

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

Chapter 010, Flexible Budgets and Performance Analysis

10 Flexible BUdgets & Performance Analysis

10 Flexible BUdgets & Performance Analysis