Exam 9: Master Budgeting

Tabeling 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 6,500 units,but its actual level of activity was 6,540 units.The company 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 net operating income 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 net operating income in the flexible budget for November would be closest to:

Federick Clinic uses client-visits as its measure of activity.During October,the clinic budgeted for 3,000 client-visits,but its actual level of activity was 3,040 client-visits.The clinic 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 occupancy expenses in the flexible budget for October would be closest to:

Randt Footwear Corporation's flexible budget cost formula for supplies,a variable cost,is $2.79 per unit of output.The company's performance report for last month showed a $5,363 favorable spending variance for supplies.During that month,17,300 units were produced.Budgeted activity for the month had been 17,200 units.The actual cost per unit for indirect materials must have been closest to:

Prater 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 5,400 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 February: Data used in budgeting: Actual results for February: The direct labor in the planning budget for February would be closest to:

Eliezrie Corporation makes a product with the following standard costs: In January the company's budgeted production was 7,400 units but the actual production was 7,500 units.The company used 45,580 kilos of the direct material and 2,030 direct labor-hours to produce this output.During the month,the company purchased 48,500 kilos of the direct material at a cost of $53,350.The actual direct labor cost was $18,473 and the actual variable overhead cost was $7,714. 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 price variance for January is:

Zenon 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 July,the kennel budgeted for 3,300 tenant-days,but its actual level of activity was 3,260 tenant-days.The kennel 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:

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 personnel expenses in the planning budget for February would be closest to:

Longview Hospital performs blood tests in its laboratory.The following standards have been set for each blood test performed: During May,the laboratory performed 1,500 blood tests.On May 1 there were no direct materials (plates)on hand;after a plate is used for a blood test it is discarded.Variable overhead is assigned to blood tests on the basis of standard direct labor-hours.The following events occurred during May: • 3,600 plates were purchased for $9,540 • 3,200 plates were used for blood tests • 340 actual direct labor-hours were worked at a cost of $5,550 The direct materials purchases variance is computed when the materials are purchased. The materials price variance for May is:

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 labor rate variance for the period is:

Stench Foods Corporation uses a standard cost system to collect costs related to the production of its garlic flavored yogurt.The garlic (materials)standards for each container of yogurt produced are 0.8 ounces of crushed garlic at a standard cost of $2.30 per ounce. During the month of June,Stench purchased 75,000 ounces of crushed garlic at a total cost of $171,000.Stench used 64,000 of these ounces to produce 71,500 containers of yogurt. The direct materials purchases variance is computed when the materials are purchased. What is Stench's materials price variance for June?

The Collins Corporation uses standard costing and has established the following direct material and direct labor standards for each unit of the single product it makes: • Direct materials: 4 gallons at $8 per gallon • Direct labor: 1 hour at $16 per hour During July,the company made 6,000 units of product and incurred the following costs: • Direct materials purchased: 26,800 gallons at $8.20 per gallon • Direct materials used: 25,200 gallons • Direct labor used: 5,600 hours at $15.30 per hour The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for July was:

Eliezrie Corporation makes a product with the following standard costs: In January the company's budgeted production was 7,400 units but the actual production was 7,500 units.The company used 45,580 kilos of the direct material and 2,030 direct labor-hours to produce this output.During the month,the company purchased 48,500 kilos of the direct material at a cost of $53,350.The actual direct labor cost was $18,473 and the actual variable overhead cost was $7,714. 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 January is:

A flexible budget should not be used when making comparisons to actual results such as actual expenses.

Lynne 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 $480 per month plus $91 per job plus $14 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 June to be 10 jobs and 79 meals,but the actual activity was 14 jobs and 77 meals.The actual cost for catering supplies in June was $2,970.The catering supplies in the flexible budget for June would be closest to:

Comparing actual results to a budget based on the actual activity for the period is possible with the use of a:

A revenue variance is unfavorable if the actual revenue is less than the revenue in the static planning budget.

Jiminian Clinic uses client-visits as its measure of activity.During March,the clinic budgeted for 3,700 client-visits,but its actual level of activity was 3,660 client-visits.The clinic 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 net operating income in the flexible budget for March 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 price variance for the period is:

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 variable overhead efficiency variance for the period is: