Question 1

-The activity variance for net operating income for August would have been closest to:

Accepted Answer

A)  $5,200 F 
B)  $4,100 U 
C)  $5,200 U 
D)  $4,100 F 
A)  $5,200 F 
B)  $4,100 U 
C)  $5,200 U 
D)  $4,100 F C

Question 2

The activity variance for revenue is favorable if the revenue in the flexible budget exceeds the revenue in the static planning budget.

Accepted Answer

A) True 
 B)False  True

Question 3

Benjamin Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes.
   When the company prepared its planning budget at the beginning of March, it assumed that 26 containers would have been refurbished. However, 23 containers were actually refurbished during March.
-The amount shown for total expenses in the planning budget for March would have been closest to:

Accepted Answer

A)  $126,700 
B)  $143,226 
C)  $128,600 
D)  $133,700 
A)  $126,700 
B)  $143,226 
C)  $128,600 
D)  $133,700 D

Question 4

Buckson Framing's cost formula for its supplies cost is $1,350 per month plus $18 per frame.For the month of June,the company planned for activity of 716 frames,but the actual level of activity was 713 frames.The actual supplies cost for the month was $14,820.The supplies cost in the flexible budget for June would be closest to:

Accepted Answer

A)  $14,820 
B)  $14,184 
C)  $14,178 
D)  $14,238 
A)  $14,820 
B)  $14,184 
C)  $14,178 
D)  $14,238

Question 5

Rizzio 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 September,the school budgeted for 1,820 students and 173 courses.The actual activity for the month was 2,020 students and 178 courses.
Required:
Prepare the school's planning budget for September.

Accepted Answer

The answer of Rizzio Tech is a for-profit vocational school.The...

Question 6

Kekiwi 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 6,900 units, but its actual level of activity was 6,910 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:
Data used in budgeting:
   Actual results for January:
  
-The manufacturing overhead in the flexible budget for January would be closest to:

Accepted Answer

A)  $57,004 
B)  $57,647 
C)  $57,630 
D)  $57,170 
A)  $57,004 
B)  $57,647 
C)  $57,630 
D)  $57,170

Question 7

Gordin 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 3,000 tenant-days, but its actual level of activity was 3,020 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
   Actual results for May:
  
-The spending variance for food and supplies in May would be closest to:

Accepted Answer

A)  $840 U 
B)  $840 F 
C)  $1,044 F 
D)  $1,044 U 
A)  $840 U 
B)  $840 F 
C)  $1,044 F 
D)  $1,044 U

Question 8

Witten Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes.
   A total of 27 customers were actually served during January.
-The "Travel expenses" in the flexible budget for January would have been closest to:

Accepted Answer

A)  $13,200 
B)  $16,200 
C)  $13,444 
D)  $16,500 
A)  $13,200 
B)  $16,200 
C)  $13,444 
D)  $16,500

Question 9

Heise Urban Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for July was based on 3,500 meals.The diner's director has provided the following cost data to use in the budget:
 groceries,$2.35 per meal; kitchen operations,$4,000 per month plus $1.80 per meal; administrative expenses,$2,800 per month plus $0.60 per meal; and fundraising expenses,$1,600 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 July.Label each variance as favorable (F)or unfavorable (U).

Accepted Answer

The answer of Heise Urban Diner is a charity supported...

Question 10

Meinke 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 3,700 tenant-days, but its actual level of activity was 3,680 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for April:
Data used in budgeting:
   Actual results for April:
  
-The administrative expenses in the planning budget for April would be closest to:

Accepted Answer

A)  $7,972 
B)  $8,052 
C)  $7,980 
D)  $8,096 
A)  $7,972 
B)  $8,052 
C)  $7,980 
D)  $8,096

Question 11

Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,900 units, but its actual level of activity was 5,940 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
   Actual results for May:
  
-The activity variance for direct labor in May would be closest to:

Accepted Answer

A)  $156 U 
B)  $156 F 
C)  $224 F 
D)  $224 U 
A)  $156 U 
B)  $156 F 
C)  $224 F 
D)  $224 U

Question 12

Rients Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for October.
   When the company prepared its planning budget at the beginning of October, it assumed that 39 customers would have been served. However, 44 customers were actually served during October.
-The spending variance for total expenses for October would have been closest to:

Accepted Answer

A)  $600 F 
B)  $9,400 U 
C)  $600 U 
D)  $9,400 F 
A)  $600 F 
B)  $9,400 U 
C)  $600 U 
D)  $9,400 F

Question 13

Ruozzo Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for July.
   When the company prepared its planning budget at the beginning of July, it assumed that 27 customers would have been served. However, 22 customers were actually served during July.
-The spending variance for "Travel expenses" for July would have been closest to:

Accepted Answer

A)  $2,000 F 
B)  $2,000 U 
C)  $500 F 
D)  $500 U 
A)  $2,000 F 
B)  $2,000 U 
C)  $500 F 
D)  $500 U

Question 14

Witten Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes.
   A total of 27 customers were actually served during January.
-The revenue in the company's flexible budget for January would have been closest to:

Accepted Answer

A)  $178,200 
B)  $180,900 
C)  $147,400 
D)  $145,200 
A)  $178,200 
B)  $180,900 
C)  $147,400 
D)  $145,200

Question 15

Witten Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes.
   A total of 27 customers were actually served during January.
-The total expenses in the flexible budget for January would have been closest to:

Accepted Answer

A)  $113,748 
B)  $133,400 
C)  $141,400 
D)  $139,600 
A)  $113,748 
B)  $133,400 
C)  $141,400 
D)  $139,600

Question 16

Harold 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 7,900 units, but its actual level of activity was 7,860 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for March:
Data used in budgeting:
   Actual results for March:
  
-The manufacturing overhead in the flexible budget for March would be closest to:

Accepted Answer

A)  $51,110 
B)  $51,631 
C)  $49,990 
D)  $50,050 
A)  $51,110 
B)  $51,631 
C)  $49,990 
D)  $50,050

Question 17

Arrison Corporation uses customers served as its measure of activity.During July,the company budgeted for 34,000 customers,but actually served 33,000 customers.The company has provided the following data concerning the formulas used in its budgeting and its actual results for July:
Data used in budgeting:
   Actual results for July:
   Required:
Prepare the company's flexible budget performance report for July.Label each variance as favorable (F)or unfavorable (U).

Accepted Answer

The answer of Arrison Corporation uses customers served as its...

Question 18

During February,Barreca Clinic plans for an activity level of 2,700 patient-visits.The clinic uses the following revenue and cost formulas in its budgeting,where q is the number of patient-visits:
Revenue:
 $49.10q
Personnel expenses:
 $34,100 + $13.20q
Medical supplies:
 $1,300 + $9.40q
Occupancy expenses:
 $8,300 + $1.40q
Administrative expenses:
 $6,100 + $0.30q
Required:
Prepare the clinic's planning budget for February.

Accepted Answer

The answer of During February,Barreca Clinic plans for an activity...

Question 19

Pickrel Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes.
   When the company prepared its planning budget at the beginning of November, it assumed that 27 wells would have been serviced. However, 31 wells were actually serviced during November.
-The amount shown for total expenses in the planning budget for November would have been closest to:

Accepted Answer

A)  $127,335 
B)  $146,200 
C)  $147,000 
D)  $139,400 
A)  $127,335 
B)  $146,200 
C)  $147,000 
D)  $139,400

Question 20

Wyzard Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished.The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for February.   When the company prepared its planning budget at the beginning of February,it assumed that 37 containers would have been refurbished.However,32 containers were actually refurbished during February.
The revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for February would have been closest to:

Accepted Answer

A)  $1,800 F 
B)  $17,200 F 
C)  $1,800 U 
D)  $17,200 U 
A)  $1,800 F 
B)  $17,200 F 
C)  $1,800 U 
D)  $17,200 U

-The activity variance for net operating income for August would have been closest to:

The activity variance for revenue is favorable if the revenue in the flexible budget exceeds the revenue in the static planning budget.

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Production Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Super-Variable Costing

Master Budgeting

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Cost of Quality

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Job-Order Costing: a Microsoft Excel-Based Approach

Fifo Method

Service Department Allocations

Analyzing Mixed Costs

Time-Driven Activity-Based Costing: a Microsoft Excel-Based Approach

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Standard Cost Systems: a Financial Reporting Perspective Using Microsoft Excel

Transfer Pricing

Service Department Charges

Pricing Decisions

The Concept of Present Value

Income Taxes and the Present Value Method

the Direct Method of Determining the Net Cash Provided by Operating Activities

Filters

Exam 9: Flexible Budgets and Performance Analysis

-The activity variance for net operating income for August would have been closest to:

The activity variance for revenue is favorable if the revenue in the flexible budget exceeds the revenue in the static planning budget.

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Production Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Super-Variable Costing

Master Budgeting

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Cost of Quality

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Job-Order Costing: a Microsoft Excel-Based Approach

Fifo Method

Service Department Allocations

Analyzing Mixed Costs

Time-Driven Activity-Based Costing: a Microsoft Excel-Based Approach

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Standard Cost Systems: a Financial Reporting Perspective Using Microsoft Excel

Transfer Pricing

Service Department Charges

Pricing Decisions

The Concept of Present Value

Income Taxes and the Present Value Method

the Direct Method of Determining the Net Cash Provided by Operating Activities

Filters