Exam 9: Flexible Budgets and Performance Analysis

-Mcdougald 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 March. When the company prepared its planning budget at the beginning of March,it assumed that 21 customers would have been served.However,26 customers were actually served during March. The spending variance for "Employee salaries and wages" for March would have been closest to:

Dinham 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 2,000 tenant-days, 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 March: Data used in budgeting: Actual results for March: -The spending variance for facility expenses in March would be closest to:

Brong 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 March. When the company prepared its planning budget at the beginning of March, it assumed that 22 containers would have been refurbished. However, 18 containers were actually refurbished during March. -The spending variance for "Employee salaries and wages" for March would have been closest to:

Korsak 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. The planning budget for October was based on serving 23 customers, but a A total of 19 customers were actually served during October. The Planning budget units is missing and affects the calculations of the subsequent questions. -The activity variance for revenue for October would have been closest to:

Skoff 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 March. When the company prepared its planning budget at the beginning of March, it assumed that 35 containers would have been refurbished. However, 32 containers were actually refurbished during March. -The spending variance for "Other expenses" for March would have been closest to:

Malander 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 3,400 tenant-days, but its actual level of activity was 3,390 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting: Actual results for November: -The food and supplies in the flexible budget for November would be closest to:

Kawamura 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 December, 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 to be used in its budgeting: -The net operating income in the planning budget for December would be closest to:

Barsness 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 and the actual results of operations for November. When the company prepared its planning budget at the beginning of November,it assumed that 39 wells would have been serviced.However,43 wells were actually serviced during November. The amount shown for "Other expenses" in the planning budget for November would have been closest to:

Schriever 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. The number of wells serviced in the planning budget is missing from the given information - this information is necessary to complete the calculations in the subsequent questions. The planning budget for May was based on 36 wells serviced, but aA total of 31 wells were actually serviced during May. -The activity variance for total expenses for May would have been closest to:

Solimini Memorial Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for January was based on 3,900 meals,but the diner actually served 3,400 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 January.Label each variance as favorable (F)or unfavorable (U).

Keisker Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,190 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting: Actual results for November: -The personnel expenses in the planning budget for November would be closest to:

Sunn 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 6,100 units, but its actual level of activity was 6,050 units. The company has provided the following data concerning the formulas to be used in its budgeting: -The direct materials in the flexible budget for November would be closest to:

Tomlison Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,100 units, but its actual level of activity was 5,150 units. The company has provided the following data concerning the formulas to be used in its budgeting: -The net operating income in the planning budget for October would be closest to:

Westby Urban Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for February was based on 3,900 meals,but the diner actually served 4,400 meals.The diner's director has provided the following cost data to use in the budget: groceries,$3.05 per meal; kitchen operations,$5,500 per month plus $1.40 per meal; administrative expenses,$3,300 per month plus $0.80 per meal; and fundraising expenses,$1,500 per month. Required: Prepare the diner's flexible budget for the actual number of meals served in February.The budget will only contain the costs listed above; no revenues will be on the budget.

Hubbard 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 2,100 tenant-days, but its actual level of activity was 2,060 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Please keep the heads "Data usd in budgeting:" This makes it absolutely clear that the table immediately below the head is for budgeting and the table that follows are actual results. Actual results for January: -The net operating income in the flexible budget for January would be closest to:

Korsak 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. The planning budget for October was based on serving 23 customers, but a A total of 19 customers were actually served during October. The Planning budget units is missing and affects the calculations of the subsequent questions. -The activity variance for net operating income for October would have been closest to:

Korsak 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. The planning budget for October was based on serving 23 customers, but a A total of 19 customers were actually served during October. The Planning budget units is missing and affects the calculations of the subsequent questions. -The activity variance for total expenses for October would have been closest to:

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 direct materials in the flexible budget for May would be closest to:

Using a flexible budget,actual results can be compared to what costs should have been at the actual level of activity.

Ocean Corporation uses customers served as its measure of activity.During June,the company budgeted for 21,000 customers,but actually served 19,000 customers.The company bases its budgets on the following information: Revenue should be $5.00 per customer served.Wages and salaries should be $24,900 per month plus $1.80 per customer served.Supplies should be $0.90 per customer served.Insurance should be $6,500 per month.Miscellaneous expenses should be $3,500 per month plus $0.40 per customer served.The company reported the following actual results for June: Required: Prepare the company's flexible budget performance report for June.Label each variance as favorable (F)or unfavorable (U).