Exam 9: Master Budgeting

Shelby Boat Wash's cost formula for its cleaning equipment and supplies is $2,200 per month plus $34 per boat.For the month of September,the company planned for activity of 82 boats,but the actual level of activity was 32 boats.The actual cleaning equipment and supplies for the month was $3,340. The spending variance for cleaning equipment and supplies in September 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 spending variance for food and supplies in May would be closest to:

Oddo Corporation makes a product with the following standard costs: The company reported the following results concerning this product in December. 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 labor rate variance for December is:

Hagel Clinic uses client-visits as its measure of activity.During July,the clinic budgeted for 2,300 client-visits,but its actual level of activity was 2,320 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:

Biery Corporation makes a product with the following standard costs: The company produced 4,100 units in April using 5,380 liters of direct material and 2,610 direct labor-hours.During the month,the company purchased 6,000 liters of the direct material at $5.80 per liter.The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 per hour. 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 materials quantity variance for April is:

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 wages and salaries in the planning budget for May would be closest to:

Perla 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 2,200 tenant-days,but its actual level of activity was 2,160 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 food and supplies in March would be closest to:

Ortman Corporation makes a product with the following standard costs: The company reported the following results concerning this product in May. 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 rate variance for May is:

Pearse 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 3,000 tenant-days,but its actual level of activity was 2,980 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Actual results for December: The net operating income in the planning budget for December would be closest to:

Fuhrer Hotel bases its budgets on guest-days.The hotel's static budget for December appears below: The total overhead cost at an activity level of 7,500 guest-days per month should be:

The standard cost card of a particular product specifies that it requires 4.5 direct labor-hours at $12.80 per direct labor-hour.During March,2,300 units of the product were produced and direct labor wages of $128,300 were incurred.A total of 11,700 direct labor-hours were worked.The direct labor variances for the month were:

Nicolini 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 October,the kennel budgeted for 2,200 tenant-days,but its actual level of activity was 2,250 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Actual results for October: The spending variance for food and supplies in October would be closest to:

Mcindoe Clinic bases its budgets on the activity measure patient-visits.During May,the clinic planned for an activity level of 3,200 patient-visits,but the activity level was actually 3,600 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 May based on the actual level of activity for the month.

Gandrud 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 2,600 tenant-days,but its actual level of activity was 2,580 tenant-days.The kennel has provided the following data concerning the formulas to be used in its budgeting: The food and supplies in the flexible budget for June would be closest to:

Bobe 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 $44,580 per month plus $2,390 per flight plus $8 per passenger.The company expected its activity in May to be 68 flights and 211 passengers,but the actual activity was 71 flights and 210 passengers.The actual cost for plane operating costs in May was $215,140. The plane operating costs in the planning budget for May would be closest to:

Labombard Clinic uses client-visits as its measure of activity.During February,the clinic budgeted for 3,600 client-visits,but its actual level of activity was 3,650 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting: Actual results for February: The net operating income in the planning budget for February would be closest to:

Beakins Corporation produces a single product.The standard cost card for the product follows: During a recent period the company produced 1,200 units of product.Various costs associated with the production of these units are given below: The company records all variances at the earliest possible point in time.Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The materials quantity variance for the period is:

Linscott 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 5,400 units,but its actual level of activity was 5,380 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 selling and administrative expenses in the planning budget for July would be closest to:

The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor efficiency variance for the month?

Papenfuss 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 76 guests?