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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 selling and administrative expenses in the planning budget for July would be closest to: A) $20,800 B) $20,805 C) $20,705 D) $20,500 -The selling and administrative expenses in the planning budget for July would be closest to:


A) $20,800
B) $20,805
C) $20,705
D) $20,500

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

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Dunbar Footwear Corporation's flexible budget cost formula for supplies,a variable cost,is $2.67 per unit of output.The company's flexible budget performance report for last month showed a $9,604 favorable spending variance for supplies.During that month,19,600 units were produced.Budgeted activity for the month had been 19,200 units.The actual cost per unit for indirect materials must have been closest to:


A) $1.73
B) $2.67
C) $2.18
D) $1.69

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

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Faulks 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. Faulks 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 August,it assumed that 23 containers would have been refurbished.However,26 containers were actually refurbished during August. The amount shown for total expenses in the planning budget for August would have been closest to: A) $111,904 B) $126,500 C) $122,400 D) $128,100 When the company prepared its planning budget at the beginning of August,it assumed that 23 containers would have been refurbished.However,26 containers were actually refurbished during August. The amount shown for total expenses in the planning budget for August would have been closest to:


A) $111,904
B) $126,500
C) $122,400
D) $128,100

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

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Wisseman 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. Wisseman 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 September,it assumed that 28 containers would have been refurbished.However,26 containers were actually refurbished during September. The activity variance for total expenses for September would have been closest to: A) $400 F B) $400 U C) $3,000 U D) $3,000 F When the company prepared its planning budget at the beginning of September,it assumed that 28 containers would have been refurbished.However,26 containers were actually refurbished during September. The activity variance for total expenses for September would have been closest to:


A) $400 F
B) $400 U
C) $3,000 U
D) $3,000 F

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

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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 plane operating costs in the flexible budget for August would be closest to:


A) $265,943
B) $255,690
C) $267,422
D) $257,984

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

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Neubert 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 5,300 units, but its actual level of activity was 5,340 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Neubert 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 5,300 units, but its actual level of activity was 5,340 units. The company 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 manufacturing overhead in the flexible budget for December would be closest to: A) $41,350 B) $40,733 C) $41,250 D) $41,310 Actual results for December: Neubert 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 5,300 units, but its actual level of activity was 5,340 units. The company 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 manufacturing overhead in the flexible budget for December would be closest to: A) $41,350 B) $40,733 C) $41,250 D) $41,310 -The manufacturing overhead in the flexible budget for December would be closest to:


A) $41,350
B) $40,733
C) $41,250
D) $41,310

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

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Boan 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: Boan 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 August,the school budgeted for 1,590 students and 110 courses.The school's income statement showing the actual results for the month appears below: Required: Prepare a report showing the school's activity variances for August.Label each variance as favorable (F)or unfavorable (U). In August,the school budgeted for 1,590 students and 110 courses.The school's income statement showing the actual results for the month appears below: Boan 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 August,the school budgeted for 1,590 students and 110 courses.The school's income statement showing the actual results for the month appears below: Required: Prepare a report showing the school's activity variances for August.Label each variance as favorable (F)or unfavorable (U). Required: Prepare a report showing the school's activity variances for August.Label each variance as favorable (F)or unfavorable (U).

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Leven Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 3,050 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for September: Leven Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 3,050 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for September: -The net operating income in the planning budget for September would be closest to: A) $9,500 B) $7,259 C) $10,260 D) $7,503 -The net operating income in the planning budget for September would be closest to:


A) $9,500
B) $7,259
C) $10,260
D) $7,503

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

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Spohn Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 3,400 client-visits, but its actual level of activity was 3,370 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for February: Spohn Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 3,400 client-visits, but its actual level of activity was 3,370 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for February: -The medical supplies in the flexible budget for February would be closest to: A) $17,512 B) $17,204 C) $18,087 D) $18,240 -The medical supplies in the flexible budget for February would be closest to:


A) $17,512
B) $17,204
C) $18,087
D) $18,240

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

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Mellenthin Clinic uses patient-visits as its measure of activity.The following report compares the planning budget to the actual operating results for the month of May: Mellenthin Clinic uses patient-visits as its measure of activity.The following report compares the planning budget to the actual operating results for the month of May: Required: Prepare the clinic's flexible budget performance report for May.Label each variance as favorable (F)or unfavorable (U). Required: Prepare the clinic's flexible budget performance report for May.Label each variance as favorable (F)or unfavorable (U).

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Hallet 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 5,800 units, but its actual level of activity was 5,830 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: Hallet 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 5,800 units, but its actual level of activity was 5,830 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 net operating income in the planning budget for May would be closest to: A) $23,380 B) $23,878 C) $29,711 D) $29,406 Actual results for May: Hallet 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 5,800 units, but its actual level of activity was 5,830 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 net operating income in the planning budget for May would be closest to: A) $23,380 B) $23,878 C) $29,711 D) $29,406 -The net operating income in the planning budget for May would be closest to:


A) $23,380
B) $23,878
C) $29,711
D) $29,406

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

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Bernes 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 2,700 tenant-days, but its actual level of activity was 2,720 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: Bernes 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 2,700 tenant-days, but its actual level of activity was 2,720 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: -The activity variance for net operating income in October would be closest to: A) $2,328 F B) $218 U C) $218 F D) $2,328 U -The activity variance for net operating income in October would be closest to:


A) $2,328 F
B) $218 U
C) $218 F
D) $2,328 U

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

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Schoening 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 January. Schoening 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 January. When the company prepared its planning budget at the beginning of January, it assumed that 40 containers would have been refurbished. However, 38 containers were actually refurbished during January. -The amount shown for Employee salaries and wages in the planning budget for January would have been closest to: A) $92,400 B) $94,600 C) $97,579 D) $92,700 When the company prepared its planning budget at the beginning of January, it assumed that 40 containers would have been refurbished. However, 38 containers were actually refurbished during January. -The amount shown for "Employee salaries and wages" in the planning budget for January would have been closest to:


A) $92,400
B) $94,600
C) $97,579
D) $92,700

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

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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 activity variance for selling and administrative expenses in March would be closest to: A) $600 F B) $20 U C) $600 U D) $20 F 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 activity variance for selling and administrative expenses in March would be closest to: A) $600 F B) $20 U C) $600 U D) $20 F -The activity variance for selling and administrative expenses in March would be closest to:


A) $600 F
B) $20 U
C) $600 U
D) $20 F

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

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

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Hamiter Framing's cost formula for its supplies cost is $1,640 per month plus $9 per frame.For the month of August,the company planned for activity of 572 frames,but the actual level of activity was 573 frames.The actual supplies cost for the month was $7,080.The supplies cost in the planning budget for August would be closest to:


A) $7,080
B) $7,068
C) $6,788
D) $6,797

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

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Carlino 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 April. Carlino 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 April. When the company prepared its planning budget at the beginning of April,it assumed that 24 wells would have been serviced.However,26 wells were actually serviced during April. Required: Prepare a performance report showing the company's activity and revenue and spending variances for April.Indicate in each case whether the variance is favorable (F)or unfavorable (U). When the company prepared its planning budget at the beginning of April,it assumed that 24 wells would have been serviced.However,26 wells were actually serviced during April. Required: Prepare a performance report showing the company's activity and revenue and spending variances for April.Indicate in each case whether the variance is favorable (F)or unfavorable (U).

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Muehlberger 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. Muehlberger 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 28 customers were actually served during April. Required: Prepare a flexible budget for the actual level of activity for April. A total of 28 customers were actually served during April. Required: Prepare a flexible budget for the actual level of activity for April.

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Milot 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 April. Milot 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 April. When the company prepared its planning budget at the beginning of April, it assumed that 32 wells would have been serviced. However, 29 wells were actually serviced during April. -The spending variance for Other expenses for April would have been closest to: A) $600 F B) $3,124 F C) $3,124 U D) $600 U When the company prepared its planning budget at the beginning of April, it assumed that 32 wells would have been serviced. However, 29 wells were actually serviced during April. -The spending variance for "Other expenses" for April would have been closest to:


A) $600 F
B) $3,124 F
C) $3,124 U
D) $600 U

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

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If the actual level of activity is 4% less than planned,then the fixed costs in the static budget should be decreased by 4% before comparing them to actual costs.

A) True
B) False

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