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Pickrel 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. Pickrel 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. When the company prepared its planning budget at the beginning of November, it assumed that 27 wells would have been serviced. However, 31 wells were actually serviced during November.The amount shown for net operating income in the planning budget for November would have been closest to: A) $26,000 B) $9,100 C) $23,500 D) $22,645 When the company prepared its planning budget at the beginning of November, it assumed that 27 wells would have been serviced. However, 31 wells were actually serviced during November.The amount shown for net operating income in the planning budget for November would have been closest to:


A) $26,000
B) $9,100
C) $23,500
D) $22,645

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

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Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,250 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: Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,250 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 activity variance for personnel expenses in February would be closest to: A) $845 U B) $1,075 F C) $1,075 U D) $845 F Actual results for February: Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,250 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 activity variance for personnel expenses in February would be closest to: A) $845 U B) $1,075 F C) $1,075 U D) $845 F The activity variance for personnel expenses in February would be closest to:


A) $845 U
B) $1,075 F
C) $1,075 U
D) $845 F

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

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Ostler Hotel bases its budgets on guest-days. The hotel's static budget for April appears below: Ostler Hotel bases its budgets on guest-days. The hotel's static budget for April appears below: The total overhead cost at an activity level of 9,700 guest-days per month should be: A) $213,150 B) $237,650 C) $223,950 D) $224,920 The total overhead cost at an activity level of 9,700 guest-days per month should be:


A) $213,150
B) $237,650
C) $223,950
D) $224,920

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

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Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,550 client-visits, but its actual level of activity was 3,490 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,550 client-visits, but its actual level of activity was 3,490 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: The activity variance for net operating income in July would be closest to: A) $366 F B) $1,116 F C) $366 U D) $1,116 U The activity variance for net operating income in July would be closest to:


A) $366 F
B) $1,116 F
C) $366 U
D) $1,116 U

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

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Dinham 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 4,000 tenant-days, but its actual level of activity was 4,040 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: Dinham 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 4,000 tenant-days, but its actual level of activity was 4,040 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 facility expenses in March would be closest to: A) $336 F B) $200 U C) $336 U D) $200 F Actual results for March: Dinham 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 4,000 tenant-days, but its actual level of activity was 4,040 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 facility expenses in March would be closest to: A) $336 F B) $200 U C) $336 U D) $200 F The spending variance for facility expenses in March would be closest to:


A) $336 F
B) $200 U
C) $336 U
D) $200 F

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

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Dubberly Corporation's cost formula for its manufacturing overhead is $30,600 per month plus $64 per machine-hour. For the month of March, the company planned for activity of 7,900 machine-hours, but the actual level of activity was 7,880 machine-hours. The actual manufacturing overhead for the month was $558,610.The manufacturing overhead in the flexible budget for March would be closest to:


A) $558,610
B) $536,200
C) $534,843
D) $534,920

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

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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) A) and D)
F) A) and C)

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Stegemann 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 May. Stegemann 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 May. When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May.The amount shown for Other expenses in the planning budget for May would have been closest to: A) $42,900 B) $42,400 C) $41,900 D) $39,010 When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May.The amount shown for "Other expenses" in the planning budget for May would have been closest to:


A) $42,900
B) $42,400
C) $41,900
D) $39,010

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

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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 selling and administrative expense in the planning budget for July would be closest to:


A) $31,460
B) $31,660
C) $31,700
D) $31,636

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

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Witten 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. Witten 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. A total of 27 customers were actually served during January. The Employee salaries and wages in the flexible budget for January would have been closest to: A) $77,100 B) $65,348 C) $80,200 D) $82,100 A total of 27 customers were actually served during January. The "Employee salaries and wages" in the flexible budget for January would have been closest to:


A) $77,100
B) $65,348
C) $80,200
D) $82,100

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

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Tessmer 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 January, the kennel budgeted for 3,100 tenant-days, but its actual level of activity was 3,090 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting: Tessmer 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 January, the kennel budgeted for 3,100 tenant-days, but its actual level of activity was 3,090 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting: Actual results for January: The net operating income in the flexible budget for January would be closest to: A) $13,878 B) $13,788 C) $12,963 D) $13,070 Actual results for January: Tessmer 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 January, the kennel budgeted for 3,100 tenant-days, but its actual level of activity was 3,090 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting: Actual results for January: The net operating income in the flexible budget for January would be closest to: A) $13,878 B) $13,788 C) $12,963 D) $13,070 The net operating income in the flexible budget for January would be closest to:


A) $13,878
B) $13,788
C) $12,963
D) $13,070

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

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Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,100 units, but its actual level of activity was 5,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:Data used in budgeting: Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,100 units, but its actual level of activity was 5,050 units. The company 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 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 May would be closest to: A) $3,595 F B) $2,750 F C) $2,750 U D) $3,595 U Actual results for May: Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,100 units, but its actual level of activity was 5,050 units. The company 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 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 May would be closest to: A) $3,595 F B) $2,750 F C) $2,750 U D) $3,595 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 May would be closest to:


A) $3,595 F
B) $2,750 F
C) $2,750 U
D) $3,595 U

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

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The main difference between a flexible budget and a static budget is that the static budget is not adjusted for changes in the level of activity.

A) True
B) False

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Moncrief Corporation bases its budgets on machine-hours. The company's static planning budget for July appears below: Moncrief Corporation bases its budgets on machine-hours. The company's static planning budget for July appears below: Actual results for the month were: The spending variance for supplies costs in the flexible budget performance report for the month should be: A) $30 F B) $1,690 F C) $1,690 U D) $30 U Actual results for the month were: Moncrief Corporation bases its budgets on machine-hours. The company's static planning budget for July appears below: Actual results for the month were: The spending variance for supplies costs in the flexible budget performance report for the month should be: A) $30 F B) $1,690 F C) $1,690 U D) $30 U The spending variance for supplies costs in the flexible budget performance report for the month should be:


A) $30 F
B) $1,690 F
C) $1,690 U
D) $30 U

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

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Stegemann 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 May. Stegemann 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 May. When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May.The activity variance for total expenses for May would have been closest to: A) $3,600 Favorable B) $3,600 Unfavorable C) $4,900 Unfavorable D) $4,900 Favorable When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May.The activity variance for total expenses for May would have been closest to:


A) $3,600 Favorable
B) $3,600 Unfavorable
C) $4,900 Unfavorable
D) $4,900 Favorable

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

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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)

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Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,500 client-visits, but its actual level of activity was 3,490 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting: Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,500 client-visits, but its actual level of activity was 3,490 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting: Actual results for January: The net operating income in the planning budget for January would be closest to: A) $13,312 B) $13,500 C) $6,400 D) $6,364 Actual results for January: Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,500 client-visits, but its actual level of activity was 3,490 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting: Actual results for January: The net operating income in the planning budget for January would be closest to: A) $13,312 B) $13,500 C) $6,400 D) $6,364 The net operating income in the planning budget for January would be closest to:


A) $13,312
B) $13,500
C) $6,400
D) $6,364

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

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Stegemann 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 May. Stegemann 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 May. When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May.The revenue in the company's flexible budget for May would have been closest to: A) $145,614 B) $153,700 C) $143,100 D) $156,400 When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May.The revenue in the company's flexible budget for May would have been closest to:


A) $145,614
B) $153,700
C) $143,100
D) $156,400

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

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Kirkeby 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. Kirkeby 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. When the company prepared its planning budget at the beginning of May, it assumed that 32 containers would have been refurbished. However, 34 containers were actually refurbished during May.The Refurbishing materials in the flexible budget for May would have been closest to: A) $22,682 B) $24,100 C) $22,400 D) $23,800 When the company prepared its planning budget at the beginning of May, it assumed that 32 containers would have been refurbished. However, 34 containers were actually refurbished during May.The "Refurbishing materials" in the flexible budget for May would have been closest to:


A) $22,682
B) $24,100
C) $22,400
D) $23,800

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

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

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