Filters
Question type
Study Flashcards

Lochner Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for June. Lochner Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for June. When the company prepared its planning budget at the beginning of June, it assumed that 24 wells would have been serviced. However, 26 wells were actually serviced during June. The spending variance for Employee salaries and wages for June would have been closest to: A) $1,900 U B) $4,300 U C) $4,300 F D) $1,900 F When the company prepared its planning budget at the beginning of June, it assumed that 24 wells would have been serviced. However, 26 wells were actually serviced during June. The spending variance for "Employee salaries and wages" for June would have been closest to:


A) $1,900 U
B) $4,300 U
C) $4,300 F
D) $1,900 F

E) B) and D)
F) A) and B)

Correct Answer

verifed

verified

Brong Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for March. Brong Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for March. When the company prepared its planning budget at the beginning of March, it assumed that 22 containers would have been refurbished. However, 18 containers were actually refurbished during March. The variance for net operating income in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for March would have been closest to: A) $16,200 F B) $1,800 U C) $16,200 U D) $1,800 F When the company prepared its planning budget at the beginning of March, it assumed that 22 containers would have been refurbished. However, 18 containers were actually refurbished during March. The variance for net operating income in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for March would have been closest to:


A) $16,200 F
B) $1,800 U
C) $16,200 U
D) $1,800 F

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Standahl 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 $39,590 per month plus $2,649 per flight plus $4 per passenger. The company expected its activity in August to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers. The actual cost for plane operating costs in August was $255,690. The activity variance for plane operating costs in August would be closest to:


A) $2,294 F
B) $7,959 U
C) $7,959 F
D) $2,294 U

E) B) and D)
F) B) and C)

Correct Answer

verifed

verified

Teel 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 $8,850 per month plus $400 per press run plus $950 per book set-up. The company expected its activity in July to be 204 press runs and 111 book set-ups, but the actual activity was 201 press runs and 110 book set-ups. The actual cost for wages and salaries in July was $193,780. The activity variance for wages and salaries in July would be closest to:


A) $2,150 F
B) $2,120 F
C) $2,150 U
D) $2,120 U

E) B) and D)
F) A) and C)

Correct Answer

verifed

verified

Meinke 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 April, the kennel budgeted for 3,700 tenant-days, but its actual level of activity was 3,680 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for April: Data used in budgeting: Meinke 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 April, the kennel budgeted for 3,700 tenant-days, but its actual level of activity was 3,680 tenant-days. The kennel 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 administrative expenses in the planning budget for April would be closest to: A) $7,972 B) $8,052 C) $7,980 D) $8,096 Actual results for April: Meinke 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 April, the kennel budgeted for 3,700 tenant-days, but its actual level of activity was 3,680 tenant-days. The kennel 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 administrative expenses in the planning budget for April would be closest to: A) $7,972 B) $8,052 C) $7,980 D) $8,096 The administrative expenses in the planning budget for April would be closest to:


A) $7,972
B) $8,052
C) $7,980
D) $8,096

E) B) and D)
F) B) and C)

Correct Answer

verifed

verified

Prestridge Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for August. Prestridge Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for August. When the company prepared its planning budget at the beginning of August, it assumed that 31 customers would have been served. However, 29 customers were actually served during August. The activity variance for net operating income for August would have been closest to: A) $5,200 F B) $4,100 U C) $5,200 U D) $4,100 F When the company prepared its planning budget at the beginning of August, it assumed that 31 customers would have been served. However, 29 customers were actually served during August. The activity variance for net operating income for August would have been closest to:


A) $5,200 F
B) $4,100 U
C) $5,200 U
D) $4,100 F

E) A) and D)
F) All of the above

Correct Answer

verifed

verified

Lawes 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 5,000 units, but its actual level of activity was 5,050 units. The company has provided the following data concerning the formulas to be used in its budgeting: Lawes 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 5,000 units, but its actual level of activity was 5,050 units. The company has provided the following data concerning the formulas to be used in its budgeting: The direct labor in the planning budget for July would be closest to: A) $30,574 B) $30,880 C) $30,300 D) $30,000 The direct labor in the planning budget for July would be closest to:


A) $30,574
B) $30,880
C) $30,300
D) $30,000

E) C) and D)
F) A) and B)

Correct Answer

verifed

verified

Rhed 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 3,700 tenant-days, but its actual level of activity was 3,650 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: Rhed 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 3,700 tenant-days, but its actual level of activity was 3,650 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 wages and salaries in the planning budget for December would be closest to: A) $30,575 B) $30,994 C) $30,305 D) $30,690 Actual results for December: Rhed 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 3,700 tenant-days, but its actual level of activity was 3,650 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 wages and salaries in the planning budget for December would be closest to: A) $30,575 B) $30,994 C) $30,305 D) $30,690 The wages and salaries in the planning budget for December would be closest to:


A) $30,575
B) $30,994
C) $30,305
D) $30,690

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Ruozzo Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for July. Ruozzo Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for July. When the company prepared its planning budget at the beginning of July, it assumed that 27 customers would have been served. However, 22 customers were actually served during July. The amount shown for net operating income in the planning budget for July would have been closest to: A) ($12,700) B) ($15,586) C) ($11,800) D) $3,700 When the company prepared its planning budget at the beginning of July, it assumed that 27 customers would have been served. However, 22 customers were actually served during July. The amount shown for net operating income in the planning budget for July would have been closest to:


A) ($12,700)
B) ($15,586)
C) ($11,800)
D) $3,700

E) A) and B)
F) C) and D)

Correct Answer

verifed

verified

Mongelli 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: Mongelli 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 99 guests? A) $7,793.90 B) $61,541.00 C) $8,512.90 D) $7,739.00 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 99 guests?


A) $7,793.90
B) $61,541.00
C) $8,512.90
D) $7,739.00

E) All of the above
F) B) and C)

Correct Answer

verifed

verified

Magliacane Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Magliacane Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. When the company prepared its planning budget at the beginning of February, it assumed that 39 customers would have been served. However, 35 customers were actually served during February. The revenue in the company's flexible budget for February would have been closest to: A) $170,709 B) $167,700 C) $153,200 D) $150,500 When the company prepared its planning budget at the beginning of February, it assumed that 39 customers would have been served. However, 35 customers were actually served during February. The revenue in the company's flexible budget for February would have been closest to:


A) $170,709
B) $167,700
C) $153,200
D) $150,500

E) C) and D)
F) A) and B)

Correct Answer

verifed

verified

Virgen 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 3,700 tenant-days, but its actual level of activity was 3,690 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: Virgen 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 3,700 tenant-days, but its actual level of activity was 3,690 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: A) $25,070 B) $25,009 C) $23,919 D) $23,984 Actual results for May: Virgen 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 3,700 tenant-days, but its actual level of activity was 3,690 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: A) $25,070 B) $25,009 C) $23,919 D) $23,984 The wages and salaries in the planning budget for May would be closest to:


A) $25,070
B) $25,009
C) $23,919
D) $23,984

E) None of the above
F) A) and C)

Correct Answer

verifed

verified

Medlar Corporation's static planning budget for June appears below. The company bases its budgets on machine-hours. Medlar Corporation's static planning budget for June appears below. The company bases its budgets on machine-hours. In June, the actual number of machine-hours was 9,300, the actual supplies cost was $19,760, the actual power cost was $35,720, the actual salaries cost was $27,130, and the actual equipment depreciation was $39,430. The spending variance for power cost in the flexible budget performance report for the month should be: A) $1,900 F B) $1,900 U C) $380 U D) $380 F In June, the actual number of machine-hours was 9,300, the actual supplies cost was $19,760, the actual power cost was $35,720, the actual salaries cost was $27,130, and the actual equipment depreciation was $39,430. The spending variance for power cost in the flexible budget performance report for the month should be:


A) $1,900 F
B) $1,900 U
C) $380 U
D) $380 F

E) A) and B)
F) B) and D)

Correct Answer

verifed

verified

Rients Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for October. Rients Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for October. When the company prepared its planning budget at the beginning of October, it assumed that 39 customers would have been served. However, 44 customers were actually served during October. The revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for October would have been closest to: A) $23,000 U B) $23,000 F C) $2,500 F D) $2,500 U When the company prepared its planning budget at the beginning of October, it assumed that 39 customers would have been served. However, 44 customers were actually served during October. The revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for October would have been closest to:


A) $23,000 U
B) $23,000 F
C) $2,500 F
D) $2,500 U

E) A) and C)
F) B) and C)

Correct Answer

verifed

verified

Dure Corporation's cost formula for its selling and administrative expense is $24,500 per month plus $1 per unit. For the month of July, the company planned for activity of 7,200 units, but the actual level of activity was 7,160 units. The actual selling and administrative expense for the month was $31,460. The spending variance for selling and administrative expense in July would be closest to:


A) $240 U
B) $200 U
C) $200 F
D) $240 F

E) A) and D)
F) B) and C)

Correct Answer

verifed

verified

Keisker Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,190 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting: Keisker Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,190 client-visits. The clinic 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 personnel expenses in the planning budget for November would be closest to: A) $67,700 B) $66,568 C) $66,265 D) $67,525 Actual results for November: Keisker Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,190 client-visits. The clinic 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 personnel expenses in the planning budget for November would be closest to: A) $67,700 B) $66,568 C) $66,265 D) $67,525 The personnel expenses in the planning budget for November would be closest to:


A) $67,700
B) $66,568
C) $66,265
D) $67,525

E) B) and C)
F) None of the above

Correct Answer

verifed

verified

Paulis 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 February, the kennel budgeted for 2,500 tenant-days, but its actual level of activity was 2,480 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting: Paulis 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 February, the kennel budgeted for 2,500 tenant-days, but its actual level of activity was 2,480 tenant-days. The kennel 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 overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for February would be closest to: A) $500 F B) $500 U C) $264 F D) $264 U Actual results for February: Paulis 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 February, the kennel budgeted for 2,500 tenant-days, but its actual level of activity was 2,480 tenant-days. The kennel 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 overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for February would be closest to: A) $500 F B) $500 U C) $264 F D) $264 U The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for February would be closest to:


A) $500 F
B) $500 U
C) $264 F
D) $264 U

E) None of the above
F) B) and C)

Correct Answer

verifed

verified

Using a flexible budget, actual results can be compared to what costs should have been at the actual level of activity.

A) True
B) False

Correct Answer

verifed

verified

Bracken Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,140 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for September: Data used in budgeting: Bracken Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,140 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for September: Data used in budgeting: Actual results for September: The spending variance for occupancy expenses in September would be closest to: A) $10 F B) $106 F C) $10 U D) $106 U Actual results for September: Bracken Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,140 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for September: Data used in budgeting: Actual results for September: The spending variance for occupancy expenses in September would be closest to: A) $10 F B) $106 F C) $10 U D) $106 U The spending variance for occupancy expenses in September would be closest to:


A) $10 F
B) $106 F
C) $10 U
D) $106 U

E) None of the above
F) A) and D)

Correct Answer

verifed

verified

Gordin 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 3,000 tenant-days, but its actual level of activity was 3,020 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: Gordin 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 3,000 tenant-days, but its actual level of activity was 3,020 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: A) $840 U B) $840 F C) $1,044 F D) $1,044 U Actual results for May: Gordin 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 3,000 tenant-days, but its actual level of activity was 3,020 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: A) $840 U B) $840 F C) $1,044 F D) $1,044 U The spending variance for food and supplies in May would be closest to:


A) $840 U
B) $840 F
C) $1,044 F
D) $1,044 U

E) B) and D)
F) B) and C)

Correct Answer

verifed

verified

Showing 61 - 80 of 417

Related Exams

Exam 1

Managerial Accounting and Cost Concepts

299 Questions

Exam 2

Costvolumeprofit Relationships

260 Questions

Exam 3

Joborder Costing: Calculating Unit Product Costs

292 Questions

Exam 4

Variable Costing and Segment Reporting: Tools for Management

291 Questions

Exam 5

Activitybased Costing: a Tool to Aid Decision Making

213 Questions

Exam 6

Differential Analysis: the Key to Decision Making

203 Questions

Exam 7

Capital Budgeting Decisions

179 Questions

Exam 8

Master Budgeting

236 Questions

Exam 10

Standard Costs and Variances

247 Questions

Exam 11

Performance Measurement in Decentralized Organizations

180 Questions

Exam 12

Cost of Quality

66 Questions

Exam 13

Analyzing Mixed Costs

82 Questions

Exam 14

Activity-Based Absorption Costing

20 Questions

Exam 15

the Predetermined Overhead Rate and Capacity

42 Questions

Exam 16

Super-Variable Costing

49 Questions

Exam 17

Time-Driven Activity-Based Costing: a Microsoft Excel-Based Approach

123 Questions

Exam 18

Pricing Decisions

149 Questions

Exam 19

the Concept of Present Value

16 Questions

Exam 20

Income Taxes and the Net Present Value Method

150 Questions

Exam 21

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

177 Questions

Exam 22

Transfer Pricing

102 Questions

Exam 22

Service Department Charges

44 Questions

Show Answer