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Exam 9: Flexible Budgets Standard Costs and Variance Analysis

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Question 101

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The occupancy expenses in the flexible budget for December would be closest to:

A) $15,565
B) $16,114
C) $15,945
D) $16,030

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

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Question 102

Multiple Choice

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The wages and salaries in the planning budget for January would be closest to:

A) $17,282
B) $17,618
C) $17,420
D) $17,132

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

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Question 103

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Dilley Clinic uses patient-visits as its measure of activity.During November, the clinic budgeted for 3,100 patient-visits, but its actual level of activity was 3,500 patient-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: Required: Prepare a report showing the clinic's revenue and spending variances for November.Label each variance as favorable (F)or unfavorable (U).

The net operating income in the flexible budget for November would be closest to:

Barrom Memorial Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for July is to be based on 2,000 meals.The diner's director has provided the following cost formulas to use in the budget: Required: Prepare the diner's budget for the month of July.The budget will only contain the costs listed above; no revenues will be on the budget.

Rameriz 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. A total of 34 containers were actually refurbished during May. Required: Prepare a flexible budget for the actual level of activity for May.

At Eady Corporation, maintenance is a variable overhead cost that is based on machine-hours.The performance report for July showed that actual maintenance costs totaled $8,650 and that the associated rate variance was $250 unfavorable.If 5,000 machine-hours were actually worked during July, the standard maintenance cost per machine-hour was:

The variable overhead efficiency variance for September is:

A budget that is based on the actual activity of a period is known as a:

The administrative expenses in the planning budget for February would be closest to:

The direct materials in the flexible budget for October would be closest to:

The spending variance for "Other expenses" for March would have been closest to:

The administrative expenses in the planning budget for December would be closest to:

The materials price variance for March is:

The medical supplies in the flexible budget for September would be closest to:

The total fixed cost at the activity level of 9,600 patient-visits per month should be:

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).

The variable overhead efficiency variance for August is:

Bluemel 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 $43,670 per month plus $2,879 per flight plus $10 per passenger.The company expected its activity in December to be 85 flights and 281 passengers, but the actual activity was 90 flights and 278 passengers.The actual cost for plane operating costs in December was $314,740.The plane operating costs in the flexible budget for December would be closest to:

What is the labor rate variance for the month?