Exam 9: Master Budgeting

Illescas Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During December,the company budgeted for 6,400 units,but its actual level of activity was 6,440 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 December would be closest to:

Berends Corporation makes a product with the following standard costs: The company reported the following results concerning this product in April. 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:

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 materials price variance for May is:

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

Coody Clinic uses patient-visits as its measure of activity.The clinic has provided the following report: Required: Prepare a report showing the clinic's revenue and spending variances for July.Label each variance as favorable (F)or unfavorable (U).

Hairston 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 7,700 units,but its actual level of activity was 7,720 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 spending variance for direct materials in November would be closest to:

Jurczyk Corporation makes a product that has the following direct labor standards: In December the company's budgeted production was 4,600 units,but the actual production was 4,400 units.The company used 1,330 direct labor-hours to produce this output.The actual direct labor cost was $14,364. The labor efficiency variance for December is:

Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost.Jackson has established the following standards for one unit of product. During May,Jackson purchased 125,000 pounds of direct material at a total cost of $475,000.The total factory wages for May were $364,000,90 percent of which were for direct labor.Jackson manufactured 22,000 units of product during May using 108,000 pounds of direct material and 28,000 direct labor-hours. The labor efficiency variance for May 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 labor efficiency variance for June is:

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 flexible budget for May would be closest to:

Berends Corporation makes a product with the following standard costs: The company reported the following results concerning this product in April. 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 April is:

Deschamp Corporation's variable overhead is applied on the basis of direct labor-hours.The company has established the following variable overhead standards for product O28H: The following data pertain to the most recent month's operations during which 2,160 units of product O28H were made: Required: a.What was the variable overhead rate variance for the month? b.What was the variable overhead efficiency variance for the month?

Sund Corporation bases its budgets on the activity measure customers served.During April,the company plans to serve 38,000 customers.The company has provided the following data concerning the formulas it uses in its budgeting: Required: Prepare the company's planning budget for April.

During November,Guerreiro Clinic budgeted for 2,200 patient-visits,but its actual level of activity was 2,500 patient-visits.Revenue should be $49.00 per patient-visit.Personnel expenses should be $30,700 per month plus $14.70 per patient-visit.Medical supplies should be $1,800 per month plus $6.50 per patient-visit.Occupancy expenses should be $7,600 per month plus $1.40 per patient-visit.Administrative expenses should be $4,700 per month plus $0.10 per patient-visit. Required: Prepare the clinic's flexible budget for November based on the actual level of activity for the month.

Diemert Corporation bases its budgets on machine-hours.The company's static planning budget for June appears below: Actual results for the month were: The spending variance for supplies costs in the performance report for the month should be:

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 occupancy expenses in the flexible budget for March would be closest to:

The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What is the variable overhead rate variance for the month?

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 administrative expenses in the planning budget for October would be closest to:

Lehnertz 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 7,100 units,but its actual level of activity was 7,150 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 materials in the flexible budget for February would be closest to:

Chirico Clinic uses client-visits as its measure of activity.During February,the clinic budgeted for 2,500 client-visits,but its actual level of activity was 2,550 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 occupancy expenses in the flexible budget for February would be closest to: