1) Hagel Clinic uses client-visits as its measure of activity. During July, the clinic
budgeted for 2,300 client-visits, but its actual level of activity was 2,320 client-visits.
The clinic 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:
The spending variance for occupancy expenses in July would be closest to:
A.$150 F
B.$190 F
C.$150 U
D.$190 U
2) Krejci 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
$41,430 per month plus $2,419 per flight plus $6 per passenger. The company expected
its activity in March to be 84 flights and 222 passengers, but the actual activity was 81
flights and 220 passengers. The actual cost for plane operating costs in March was
$239,870. The plane operating costs in the planning budget for March would be closest
to:
A.$245,958
B.$239,870
C.$248,754
D.$238,689
3) Aksamit Corporation bases its predetermined overhead rate on the estimated
machine-hours for the upcoming year. Data for the most recently completed year appear
below:
The predetermined overhead rate for the recently completed year was closest to:
A.$23.97
B.$31.00
C.$7.03
D.$31.35
4) Natcher Corporation’s accounts receivable at the end of Year 2 was $126,000 and its
accounts receivable at the end of Year 1 was $130,000. The company’s inventory at the
end of Year 2 was $127,000 and its inventory at the end of Year 1 was $120,000. Sales,
all on account, amounted to $1,380,000 in Year 2. Cost of goods sold amounted to
$800,000 in Year 2. The company’s operating cycle for Year 2 is closest to:
A.44.7 days
B.17.3 days
C.62.8 days
D.90.2 days
5) Miao Clinic uses client-visits as its measure of activity. During July, the clinic
budgeted for 3,000 client-visits, but its actual level of activity was 2,980 client-visits.
The clinic 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:
The administrative expenses in the planning budget for July would be closest to:
A.$6,492
B.$6,500
C.$6,234
D.$6,192
6) Diseth Corporation applies manufacturing overhead to products on the basis of
standard machine-hours. The company bases its predetermined overhead rate on 5,300
machine-hours. The company’s total budgeted fixed manufacturing overhead is
$12,720. In the most recent month, the total actual fixed manufacturing overhead was
$12,370. The company actually worked 5,350 machine-hours during the month. The
standard hours allowed for the actual output of the month totaled 5,540 machine-hours.
What was the overall fixed manufacturing overhead volume variance for the month?
A.$350 Favorable
B.$120 Favorable
C.$120 Unfavorable
D.$576 Favorable
7) Higgins Labs, Inc. uses a process costing system. The following data are available
for one department for October:
The department started 45,000 units into production during the month and completed
and transferred 50,000 units to the next department.
Assuming the FIFO method is used, the equivalent units for material for October would
be:
A.55,000 units
B.46,500 units
C.44,500 units
D.48,000 units
8) Privett Hospital bases its budgets on patient-visits. The hospital’s static planning
budget for November appears below:
Actual results for the month were:
The spending variance for laundry costs in the flexible budget performance report for
the month is:
A.$480 F
B.$480 U
C.$500 F
D.$500 U
9) Autry Corporation’s balance sheet and income statement appear below:
Cash dividends were $40. The company sold equipment for $19 that was originally
purchased for $6 and that had accumulated depreciation of $4. The net cash provided by
(used in) investing activities for the year was:
A.$19
B.$140
C.($159)
D.($140)
10) Rank the products in order of their current profitability from most profitable to least
profitable. In other words, rank the products in the order in which they should be
emphasized.
A) TC,KA,PA
B) PA,TC,KA
C) TC,PA,KA
D) KA,TC,PA
11) The working capital at the end of Year 2 is:
A.$260 thousand
B.$680 thousand
C.$700 thousand
D.$540 thousand