Exam 9: Master Budgeting

Midgley Corporation makes a product whose direct labor standards are 0.8 hours per unit and $22.00 per hour.In April the company produced 6,900 units using 5,250 direct labor-hours.The actual direct labor cost was $113,925. The labor rate variance for April 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 manufacturing overhead in the flexible budget for November would be closest to:

Pardoe Inc. ,manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours.The company uses a standard cost system and has established the following standards for one unit of product: During March,the following activity was recorded by the company: • The company produced 3,000 units during the month. • A total of 8,000 pounds of material were purchased at a cost of $23,000. • There was no beginning inventory of materials on hand to start the month;at the end of the month,2,000 pounds of material remained in the warehouse. • During March,1,600 direct labor-hours were worked at a rate of $6.50 per hour. • Variable manufacturing overhead costs during March totaled $1,800. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for March is:

Dancause 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 5,090 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 October would be closest to:

Petroski Natural Dying Corporation measures its activity in terms of skeins of yarn dyed.Last month,the budgeted level of activity was 19,700 skeins and the actual level of activity was 19,900 skeins.The company's owner budgets for dye costs,a variable cost,at $0.67 per skein.The actual dye cost last month was $13,910.In the company's performance report for last month,what would have been the spending variance for dye costs?

Vanderhyde 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 3,300 tenant-days,but its actual level of activity was 3,340 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 wages and salaries in the planning budget for May would be closest to:

Hottle Jeep Tours operates jeep tours in the heart of the Colorado Rockies.The company bases its budgets on two measures of activity (i.e. ,cost drivers),namely guests and jeeps.One vehicle used in one tour on one day counts as a jeep.Each jeep has one tour guide.The company uses the following data in its budgeting: In February,the company budgeted for 342 guests and 146 jeeps.The company's income statement showing the actual results for the month appears below: Required: Prepare a report showing the company's revenue and spending variances for February.Label each variance as favorable (F)or unfavorable (U).

Carvana Clinic uses patient-visits as its measure of activity.During December,the clinic budgeted for 3,400 patient-visits,but its actual level of activity was 3,100 patient-visits.The clinic 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: Required: Prepare a report showing the clinic's revenue and spending variances for December.Label each variance as favorable (F)or unfavorable (U).

Gilson Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During April,the company budgeted for 5,100 units,but its actual level of activity was 5,060 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for April: Data used in budgeting: Actual results for April: The spending variance for manufacturing overhead in April would be closest to:

Akey Hospital bases its budgets on patient-visits.The hospital's static budget for March appears below: The total overhead cost at an activity level of 3,000 patient-visits per month should be:

Kudej Printing uses two measures of activity,press runs and book set-ups,in the cost formulas in its budgets and performance reports.The cost formula for wages and salaries is $8,360 per month plus $570 per press run plus $910 per book set-up.The company expected its activity in May to be 194 press runs and 74 book set-ups,but the actual activity was 195 press runs and 72 book set-ups.The actual cost for wages and salaries in May was $188,370. The wages and salaries in the flexible budget for May would be closest to:

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 flexible budget for December would be closest to:

Schley Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the most recent month appear below: The original budget was based on 3,200 machine-hours.The company actually worked 3,510 machine-hours during the month and the standard hours allowed for the actual output were 3,660 machine-hours.What was the overall variable overhead efficiency variance for the month?

Dancause 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 5,090 units.The company has provided the following data concerning the formulas to be used in its budgeting: The manufacturing overhead in the flexible budget for October would be closest to:

Ordway 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 2,100 tenant-days,but its actual level of activity was 2,070 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Actual results for June: The net operating income in the flexible budget for June would be closest to:

Payeur Corporation uses customers served as its measure of activity.The company bases its budgets on the following information: Revenue should be $4.50 per customer served.Wages and salaries should be $38,300 per month plus $1.40 per customer served.Supplies should be $0.80 per customer served.Insurance should be $10,100 per month.Miscellaneous expenses should be $5,400 per month plus $0.40 per customer served. The company reported the following actual results for December: Required: Prepare a report showing the company's revenue and spending variances for December.Label each variance as favorable (F)or unfavorable (U).

Melrose Corporation makes a product that uses a material with the following standards: The company budgeted for production of 5,800 units in September,but actual production was 5,900 units.The company used 50,210 pounds of direct material to produce this output.The company purchased 55,100 pounds of the direct material at $5.80 per pound. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for September is:

Degregorio Corporation makes a product that uses a material with the following direct material standards: The company produced 5,600 units in November using 21,750 kilos of the material.During the month,the company purchased 24,800 kilos of the direct material at a total cost of $168,640.The direct materials purchases variance is computed when the materials are purchased. The materials price variance for November is:

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 rate variance for December is:

Gilson Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During April,the company budgeted for 5,100 units,but its actual level of activity was 5,060 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for April: Data used in budgeting: Actual results for April: The revenue variance for April would be closest to: