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1) drabant 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 february, the kennel budgeted
for 2,000 tenant-days, but its actual level of activity was 2,040 tenant-days. the kennel
has provided the following data concerning the formulas used in its budgeting and its
actual results for february:
the administrative expenses in the planning budget for february would be closest to:
a.$7,500
b.$7,252
c.$7,110
d.$7,512
2) higgenbotham clinic uses client-visits as its measure of activity. during may, the
clinic budgeted for 3,600 client-visits, but its actual level of activity was 3,580
client-visits. the clinic has provided the following data concerning the formulas to be
used in its budgeting for may:
the administrative expenses in the planning budget for may would be closest to:
a.$5,261
b.$5,440
c.$5,232
d.$5,432
3) gabritz, inc. has a maintenance department that provides services to the company's
two operating departments. the variable costs of the maintenance department are
charged on the basis of the number of maintenance hours logged in each department.
last year, budgeted variable maintenance costs were $7.50 per maintenance hour and
actual variable maintenance costs were $7.80 per maintenance hour.
the budgeted and actual maintenance hours for each operating department for last year
appear below:
required:
a. compute the amount of variable maintenance department cost that should have been
charged to each operating department at the end of the year for performance evaluation
purposes.
b. compute the amount of actual variable maintenance department cost that should not
have been charged to the operating departments at the end of the year for performance
evaluation purposes.
4) if the actual labor hours worked exceed the standard labor hours allowed, what type
of variance will occur?
a.favorable labor efficiency variance
b.favorable labor rate variance
c.unfavorable labor efficiency variance
d.unfavorable labor rate variance
5) moulgadi corporation uses the fifo method in its process costing system. data
concerning the first processing department for the most recent month are listed below:
note: your answers may differ from those offered below due to rounding error. in all
cases, select the answer that is the closest to the answer you computed. to reduce
rounding error, carry out all computations to at least three decimal places.
what are the equivalent units for conversion costs for the month in the first processing
department?
a.880
b.10,400
c.9,575
d.8,100
6) faxon company, which has only one product, has provided the following data
concerning its most recent month of operations:
what is the net operating income for the month under absorption costing?
a.$11,600
b.$2,300
c.$(600)
d.$9,300
7) legard 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
2,600 tenant-days, but its actual level of activity was 2,620 tenant-days. the kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for january:
the revenue variance for january would be closest to:
a.$750 u
b.$40 u
c.$40 f
d.$750 f
8) beak industries is a division of a major corporation. last year the division had total
sales of $10,600,000, net operating income of $1,070,600, and average operating assets
of $4,000,000.
the division's turnover is closest to:
a.2.09
b.9.90
c.2.65
d.0.27
9) florez corporation's two products have the following characteristics:
the constrained resource is a particular machine that is available for 10,000 minutes
each month. each unit of product u98w requires 19 minutes on this machine and each
unit of product m01s requires 7 minutes on this machine.
how many units of product u98w should be produced each month?
a.180
b.0
c.390
d.736
10) cotty clinic uses client-visits as its measure of activity. during march, the clinic
budgeted for 3,000 client-visits, but its actual level of activity was 2,970 client-visits.
the clinic has provided the following data concerning the formulas used in its budgeting
and its actual results for march:
the activity variance for administrative expenses in march would be closest to:
a.$118 u
b.$12 f
c.$118 f
d.$12 u
11) dondero corporation has provided the following data:
the accounts receivable turnover for this year is closest to:
a.1.02
b.0.98
c.6.62
d.6.70
