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

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The activity variance for revenue is favorable if the revenue in the flexible budget exceeds the revenue in the static planning budget.

A) True
B) False

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True

During February,Barreca Clinic plans for an activity level of 2,700 patient-visits.The clinic uses the following revenue and cost formulas in its budgeting,where q is the number of patient-visits: Revenue: $49.10q Personnel expenses: $34,100 + $13.20q Medical supplies: $1,300 + $9.40q Occupancy expenses: $8,300 + $1.40q Administrative expenses: $6,100 + $0.30q Required: Prepare the clinic's planning budget for February.

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Wyzard 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 February. Wyzard 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 February. When the company prepared its planning budget at the beginning of February,it assumed that 37 containers would have been refurbished.However,32 containers were actually refurbished during February. The revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for February would have been closest to: A) $1,800 F B) $17,200 F C) $1,800 U D) $17,200 U When the company prepared its planning budget at the beginning of February,it assumed that 37 containers would have been refurbished.However,32 containers were actually refurbished during February. The revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for February would have been closest to:


A) $1,800 F
B) $17,200 F
C) $1,800 U
D) $17,200 U

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

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Piechocki 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 5,900 units, but its actual level of activity was 5,940 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: Piechocki 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 5,900 units, but its actual level of activity was 5,940 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 activity variance for direct labor in May would be closest to: A) $156 U B) $156 F C) $224 F D) $224 U Actual results for May: Piechocki 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 5,900 units, but its actual level of activity was 5,940 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 activity variance for direct labor in May would be closest to: A) $156 U B) $156 F C) $224 F D) $224 U -The activity variance for direct labor in May would be closest to:


A) $156 U
B) $156 F
C) $224 F
D) $224 U

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

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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 total expenses in the planning budget for November would have been closest to: A) $127,335 B) $146,200 C) $147,000 D) $139,400 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 total expenses in the planning budget for November would have been closest to:


A) $127,335
B) $146,200
C) $147,000
D) $139,400

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

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-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 -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 B)
F) All of the above

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C

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 Travel expenses in the flexible budget for January would have been closest to: A) $13,200 B) $16,200 C) $13,444 D) $16,500 A total of 27 customers were actually served during January. -The "Travel expenses" in the flexible budget for January would have been closest to:


A) $13,200
B) $16,200
C) $13,444
D) $16,500

E) All of the above
F) None of the above

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Rizzio Tech is a for-profit vocational school.The school bases its budgets on two measures of activity (i.e.,cost drivers),namely student and course.The school uses the following data in its budgeting: Rizzio Tech is a for-profit vocational school.The school bases its budgets on two measures of activity (i.e.,cost drivers),namely student and course.The school uses the following data in its budgeting: In September,the school budgeted for 1,820 students and 173 courses.The actual activity for the month was 2,020 students and 178 courses. Required: Prepare the school's planning budget for September. In September,the school budgeted for 1,820 students and 173 courses.The actual activity for the month was 2,020 students and 178 courses. Required: Prepare the school's planning budget for September.

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Harold Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During March, the company budgeted for 7,900 units, but its actual level of activity was 7,860 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Harold Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During March, the company budgeted for 7,900 units, but its actual level of activity was 7,860 units. The company 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 manufacturing overhead in the flexible budget for March would be closest to: A) $51,110 B) $51,631 C) $49,990 D) $50,050 Actual results for March: Harold Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During March, the company budgeted for 7,900 units, but its actual level of activity was 7,860 units. The company 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 manufacturing overhead in the flexible budget for March would be closest to: A) $51,110 B) $51,631 C) $49,990 D) $50,050 -The manufacturing overhead in the flexible budget for March would be closest to:


A) $51,110
B) $51,631
C) $49,990
D) $50,050

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

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Heise Urban Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for July was based on 3,500 meals.The diner's director has provided the following cost data to use in the budget: groceries,$2.35 per meal; kitchen operations,$4,000 per month plus $1.80 per meal; administrative expenses,$2,800 per month plus $0.60 per meal; and fundraising expenses,$1,600 per month.The director has also provided the diner's statement of actual expenses for the month: Heise Urban Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for July was based on 3,500 meals.The diner's director has provided the following cost data to use in the budget: groceries,$2.35 per meal; kitchen operations,$4,000 per month plus $1.80 per meal; administrative expenses,$2,800 per month plus $0.60 per meal; and fundraising expenses,$1,600 per month.The director has also provided the diner's statement of actual expenses for the month: Required: Prepare a report showing the diner's spending variances for each of the expenses and for total expenses for July.Label each variance as favorable (F)or unfavorable (U). Required: Prepare a report showing the diner's spending variances for each of the expenses and for total expenses for July.Label each variance as favorable (F)or unfavorable (U).

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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 spending variance for Travel expenses for July would have been closest to: A) $2,000 F B) $2,000 U C) $500 F D) $500 U 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 spending variance for "Travel expenses" for July would have been closest to:


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

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

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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 revenue in the company's flexible budget for January would have been closest to: A) $178,200 B) $180,900 C) $147,400 D) $145,200 A total of 27 customers were actually served during January. -The revenue in the company's flexible budget for January would have been closest to:


A) $178,200
B) $180,900
C) $147,400
D) $145,200

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

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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 total expenses in the flexible budget for January would have been closest to: A) $113,748 B) $133,400 C) $141,400 D) $139,600 A total of 27 customers were actually served during January. -The total expenses in the flexible budget for January would have been closest to:


A) $113,748
B) $133,400
C) $141,400
D) $139,600

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

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Kekiwi Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 6,900 units, but its actual level of activity was 6,910 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Kekiwi Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 6,900 units, but its actual level of activity was 6,910 units. The company 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 manufacturing overhead in the flexible budget for January would be closest to: A) $57,004 B) $57,647 C) $57,630 D) $57,170 Actual results for January: Kekiwi Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 6,900 units, but its actual level of activity was 6,910 units. The company 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 manufacturing overhead in the flexible budget for January would be closest to: A) $57,004 B) $57,647 C) $57,630 D) $57,170 -The manufacturing overhead in the flexible budget for January would be closest to:


A) $57,004
B) $57,647
C) $57,630
D) $57,170

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

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Benjamin 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. Benjamin 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 March, it assumed that 26 containers would have been refurbished. However, 23 containers were actually refurbished during March. -The amount shown for total expenses in the planning budget for March would have been closest to: A) $126,700 B) $143,226 C) $128,600 D) $133,700 When the company prepared its planning budget at the beginning of March, it assumed that 26 containers would have been refurbished. However, 23 containers were actually refurbished during March. -The amount shown for total expenses in the planning budget for March would have been closest to:


A) $126,700
B) $143,226
C) $128,600
D) $133,700

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

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D

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

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Arrison Corporation uses customers served as its measure of activity.During July,the company budgeted for 34,000 customers,but actually served 33,000 customers.The company has provided the following data concerning the formulas used in its budgeting and its actual results for July: Data used in budgeting: Arrison Corporation uses customers served as its measure of activity.During July,the company budgeted for 34,000 customers,but actually served 33,000 customers.The company 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: Required: Prepare the company's flexible budget performance report for July.Label each variance as favorable (F)or unfavorable (U). Actual results for July: Arrison Corporation uses customers served as its measure of activity.During July,the company budgeted for 34,000 customers,but actually served 33,000 customers.The company 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: Required: Prepare the company's flexible budget performance report for July.Label each variance as favorable (F)or unfavorable (U). Required: Prepare the company's flexible budget performance report for July.Label each variance as favorable (F)or unfavorable (U).

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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 spending variance for total expenses for October would have been closest to: A) $600 F B) $9,400 U C) $600 U D) $9,400 F 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 spending variance for total expenses for October would have been closest to:


A) $600 F
B) $9,400 U
C) $600 U
D) $9,400 F

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

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Buckson Framing's cost formula for its supplies cost is $1,350 per month plus $18 per frame.For the month of June,the company planned for activity of 716 frames,but the actual level of activity was 713 frames.The actual supplies cost for the month was $14,820.The supplies cost in the flexible budget for June would be closest to:


A) $14,820
B) $14,184
C) $14,178
D) $14,238

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

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