Exam 9: Master Budgeting

Canevari Corporation makes a product that uses a material with the following standards: The company budgeted for production of 1,300 units in April,but actual production was 1,200 units.The company used 3,750 kilos of direct material to produce this output.The company purchased 4,100 kilos of the direct material at a total cost of $8,610.The direct materials purchases variance is computed when the materials are purchased. The materials price variance for April is:

The Fischer Corporation uses a standard costing system.The following data have been assembled for December: The standard hours allowed for December's production is:

A static planning budget is:

During May,Cockrel Corporation plans to serve 34,000 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: $25,400 + $0.90q Supplies: $0.40q Insurance: $7,000 Miscellaneous expense: $4,900 + $0.30q Required: Prepare the company's planning budget for May.

Coderre 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 7,800 units,but its actual level of activity was 7,780 units.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: The direct materials in the flexible budget for July would be closest to:

Loomer 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 $550 per month plus $95 per job plus $21 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 July to be 12 jobs and 136 meals,but the actual activity was 13 jobs and 137 meals.The actual cost for catering supplies in July was $4,770.The catering supplies in the planning budget for July would be closest to:

Desue Corporation makes a product with the following standards for labor and variable overhead: The company budgeted for production of 6,500 units in December,but actual production was 6,300 units.The company used 610 direct labor-hours to produce this output.The actual variable overhead rate was $6.40 per hour.The company applies variable overhead on the basis of direct labor-hours. The variable overhead rate variance for December is:

Privett Hospital bases its budgets on patient-visits.The hospital's static planning budget for November appears below: Actual results for the month were: The spending variance for occupancy costs in the performance report for the month is:

Taccone Corporation makes a product that has the following direct labor standards: In February the company produced 4,100 units using 1,120 direct labor-hours.The actual direct labor rate was $20.40 per hour. The labor rate variance for February is:

Gilder Corporation makes a product with the following standard costs: The company reported the following results concerning this product in June. The company applies variable overhead on the basis of direct labor-hours.The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for June is:

Stitt 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 5,900 units,but its actual level of activity was 5,880 units.The company 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 direct labor in the planning budget for November would be closest to:

Tysor Framing's cost formula for its supplies cost is $2,610 per month plus $17 per frame.For the month of July,the company planned for activity of 710 frames,but the actual level of activity was 712 frames.The actual supplies cost for the month was $14,540.The spending variance for supplies cost in July would be closest to:

A quantity standard indicates how much output should have been produced.

Wesolick 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 2,870 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August: Data used in budgeting: Actual results for August: The administrative expenses in the planning budget for August would be closest to:

Ruetz Clinic uses client-visits as its measure of activity.During November,the clinic budgeted for 2,500 client-visits,but its actual level of activity was 2,520 client-visits.The clinic has provided the following data concerning the formulas to be used in its budgeting: The medical supplies in the flexible budget for November would be closest to:

Leaphart 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 2,800 tenant-days,but its actual level of activity was 2,840 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 May would be closest to:

Kari 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 3,200 tenant-days,but its actual level of activity was 3,230 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 facility expenses in the flexible budget for May would be closest to:

Buonocore Clinic uses client-visits as its measure of activity.During August,the clinic budgeted for 2,800 client-visits,but its actual level of activity was 2,770 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August: Data used in budgeting: Actual results for August: The personnel expenses in the planning budget for August would be closest to:

Miao Clinic uses client-visits as its measure of activity.During July,the clinic budgeted for 3,000 client-visits,but its actual level of activity was 2,980 client-visits.The clinic 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: The spending variance for medical supplies in July would be closest to:

Machain Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The company's standard variable manufacturing overhead rate is $2.90 per machine-hour.The actual variable manufacturing overhead cost for the month was $15,270.The original budget for the month was based on 5,000 machine-hours.The company actually worked 5,090 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 5,200 machine-hours.What was the variable overhead efficiency variance for the month?