Question 1

Billafuerte Jeep Tours operates jeep tours in the heart of the Colorado Rockies.The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps.One vehicle used in one tour on one day counts as a jeep.Each jeep has one tour guide.The company uses the following data in its budgeting:  In July, the company budgeted for 496 guests and 233 jeeps.The actual activity for the month was 481 guests and 238 jeeps.
Required:
Prepare the company's planning budget for July.

Accepted Answer

The answer of Billafuerte Jeep Tours operates jeep tours in...

Question 2

The raw materials price variance for the month is closest to:

Accepted Answer

A)  $9,081 U
B)  $9,450 F
C)  $9,450 U
D)  $9,081 FE) B) and D)
F) A) and B)

Question 3

The materials quantity variance for March is:

Accepted Answer

A)  $1,116 F
B)  $1,302 F
C)  $1,302 U
D)  $1,116 UE) B) and C)
F) C) and D)

Question 4

The materials price variance for June is:

Accepted Answer

A)  $7,620 U
B)  $6,825 U
C)  $6,825 F
D)  $7,620 FE) A) and B)
F) A) and C)

Question 5

Bugos 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 March, it assumed that 40 customers would have been served.

The amount shown for "Employee salaries and wages" in the planning budget for March would have been closest to:

Accepted Answer

A)  $91,200
B)  $94,800
C)  $92,600
D)  $102,889E) B) and C)
F) A) and C)

Question 6

The spending variance for "Travel expenses" for October would have been closest to:

Accepted Answer

A)  $300 F
B)  $300 U
C)  $3,200 F
D)  $3,200 UE) All of the above
F) None of the above

Question 7

The revenue variance for May would be closest to:

Accepted Answer

A)  $4,150 F
B)  $2,170 F
C)  $2,170 U
D)  $4,150 UE) All of the above
F) A) and B)

Question 8

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

Accepted Answer

A)  $32,823
B)  $40,902
C)  $32,670
D)  $40,784E) All of the above
F) A) and B)

Question 9

During October, Fryer Corporation budgeted for 30,000 customers, but actually served 33,000 customers.Revenue should be $2.90 per customer served.Wages and salaries should be $27,200 per month plus $0.80 per customer served.Supplies should be $0.60 per customer served.Insurance should be $6,700 per month.Miscellaneous expenses should be $3,100 per month plus $0.10 per customer served.

Required:
Prepare the company's flexible budget for October based on the actual level of activity for the month.

Accepted Answer

The answer of During October, Fryer Corporation budgeted for 30,000...

Question 10

The "Travel expenses" in the flexible budget for January would have been closest to:

Accepted Answer

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

Question 11

The amount shown for "Other expenses" in the planning budget for March would have been closest to:

Accepted Answer

A)  $30,600
B)  $31,200
C)  $34,591
D)  $30,900E) B) and D)
F) None of the above

Question 12

Klacic Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in May.  The company applies variable overhead on the basis of direct labor-hours.The direct materials purchases variance is computed when the materials are purchased.
Required:
a.Compute the materials quantity variance.
b.Compute the materials price variance.
c.Compute the labor efficiency variance.
d.Compute the labor rate variance.
e.Compute the variable overhead efficiency variance.
f.Compute the variable overhead rate variance.

Accepted Answer

a.SQ = 2,700 units × 8.7 grams per unit ...

Question 13

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

Accepted Answer

A)  $17,512
B)  $17,204
C)  $18,087
D)  $18,240E) A) and C)
F) All of the above

Question 14

In general, the production manager is responsible for the materials price variance.

Accepted Answer

A) True 
 B)False

Question 15

The spending variance for facility expenses in March would be closest to:

Accepted Answer

A)  $78 F
B)  $170 U
C)  $78 U
D)  $170 FE) B) and D)
F) B) and C)

Question 16

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

Accepted Answer

A)  $5,300 U
B)  $300 F
C)  $5,300 F
D)  $300 UE) C) and D)
F) None of the above

Question 17

Material price variances are often isolated at the time materials are purchased, rather than when they are placed into production, to facilitate earlier recognition of variances.

Accepted Answer

A) True 
 B)False

Question 18

The following materials standards have been established for a particular product:  The following data pertain to operations concerning the product for the last month:  What is the materials quantity variance for the month?

Accepted Answer

A)  $9,940 U
B)  $15,351 U
C)  $14,484 U
D)  $10,535 UE) C) and D)
F) None of the above

Question 19

The variable overhead efficiency variance for the month is closest to:

Accepted Answer

A)  $268 U
B)  $268 F
C)  $276 F
D)  $276 UE) None of the above
F) B) and D)

Question 20

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

Accepted Answer

A)  $76,620
B)  $77,156
C)  $79,809
D)  $80,776E) C) and D)
F) B) and C)

Exam 9: Flexible Budgets Standard Costs and Variance Analysis

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the materials quantity variance for the month?

Correct Answer
verified

Correct Answer
verified

The variable overhead efficiency variance for the month is closest to:

Correct Answer
verified

The spending variance for "Travel expenses" for October would have been closest to:

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
a.SQ = 2,700 units × 8.7 grams per unit ...
View Answer

The materials price variance for June is:

Correct Answer
verified

Material price variances are often isolated at the time materials are purchased, rather than when they are placed into production, to facilitate earlier recognition of variances.

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

The materials quantity variance for March is:

Correct Answer
verified

Correct Answer
verified

The raw materials price variance for the month is closest to:

Correct Answer
verified

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

Correct Answer
verified

The spending variance for facility expenses in March would be closest to:

Correct Answer
verified

The amount shown for "Other expenses" in the planning budget for March would have been closest to:

Correct Answer
verified

The "Travel expenses" in the flexible budget for January would have been closest to:

Correct Answer
verified

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

Correct Answer
verified

The revenue variance for May would be closest to:

Correct Answer
verified

In general, the production manager is responsible for the materials price variance.

Correct Answer
verified

Exam 9: Flexible Budgets Standard Costs and Variance Analysis

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the materials quantity variance for the month?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The variable overhead efficiency variance for the month is closest to:

Correct AnswerverifiedShow Answer

The spending variance for "Travel expenses" for October would have been closest to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answerverifieda.SQ = 2,700 units × 8.7 grams per unit ...View AnswerShow Answer

The materials price variance for June is:

Correct AnswerverifiedShow Answer

Material price variances are often isolated at the time materials are purchased, rather than when they are placed into production, to facilitate earlier recognition of variances.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The materials quantity variance for March is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The raw materials price variance for the month is closest to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The spending variance for facility expenses in March would be closest to:

Correct AnswerverifiedShow Answer

The amount shown for "Other expenses" in the planning budget for March would have been closest to:

Correct AnswerverifiedShow Answer

The "Travel expenses" in the flexible budget for January would have been closest to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The revenue variance for May would be closest to:

Correct AnswerverifiedShow Answer

In general, the production manager is responsible for the materials price variance.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a.SQ = 2,700 units × 8.7 grams per unit ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified