216. The direct materials in the flexible budget for February would be closest to:
Rushton Hospital bases its budgets on patient-visits. The hospital’s static planning budget
for May appears below:
Actual results for the month were:
217. The spending variance for supplies costs in the flexible budget performance report for the
month is:
218. The spending variance for laundry costs in the flexible budget performance report for the
month is:
219. The spending variance for occupancy costs in the flexible budget performance report for
the month is:
Lotson Corporation bases its budgets on machine-hours. The company’s static planning
budget for May appears below:
Actual results for the month were:
220. The spending variance for supplies costs in the flexible budget performance report for the
month should be:
221. The spending variance for power costs in the flexible budget performance report for the
month should be:
10-187
222. The spending variance for equipment depreciation in the flexible budget performance
report for the month should be:
Wayland Corporation’s static planning budget for April appears below. The company bases
its budgets on machine-hours.
In April, the actual number of machine-hours was 6,600, the actual supplies cost was $64,040, the
actual power cost was $7,070, the actual salaries cost was $88,300, and the actual equipment
depreciation was $7,430.
223. The spending variance for supplies cost in the flexible budget performance report for the
month should be:
224. The spending variance for power cost in the flexible budget performance report for the
month should be:
10-190
225. The spending variance for equipment depreciation in the flexible budget performance
report for the month should be:
Privitera Printing uses two measures of activity, press runs and book set-ups, in the cost
formulas in its budgets and performance reports. The cost formula for wages and salaries is
$7,220 per month plus $650 per press run plus $1,110 per book set-up. The company expected its
activity in January to be 188 press runs and 117 book set-ups, but the actual activity was 191
press runs and 114 book set-ups. The actual cost for wages and salaries in January was $269,270.
226. The wages and salaries in the planning budget for January would be closest to:
227. The wages and salaries in the flexible budget for January would be closest to:
228. The activity variance for wages and salaries in January would be closest to:
10-193
229. The spending variance for wages and salaries in January would be closest to:
Sterr 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 $49,340 per
month plus $2,635 per flight plus $2 per passenger. The company expected its activity in January
to be 73 flights and 191 passengers, but the actual activity was 75 flights and 193 passengers.
The actual cost for plane operating costs in January was $246,440.
230. The plane operating costs in the planning budget for January would be closest to:
231. The plane operating costs in the flexible budget for January would be closest to:
232. The activity variance for plane operating costs in January would be closest to:
233. The spending variance for plane operating costs in January would be closest to:
10-197
234. Galligan Corporation bases its budgets on the activity measure customers served. During
July, the company planned to serve 30,000 customers. The company has provided the following
data concerning the formulas it uses in its budgeting:
The company has also furnished its income statement for July:
Required:
Prepare a report showing the company’s activity variances for July. Indicate in each case whether
the variance is favorable (F) or unfavorable (U).
10-199
235. Voytek Corporation bases its budgets on the activity measure customers served. During
October, the company planned to serve 36,000 customers, but actually served 34,000 customers.
The company has provided the following data concerning the formulas it uses in its budgeting:
Required:
Prepare a report showing the company’s activity variances for October. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
10-200
236. Zindell Corporation bases its budgets on the activity measure customers served. During
December, the company planned to serve 21,000 customers, but actually served 19,000
customers. The company uses the following revenue and cost formulas in its budgeting, where q
is the number of customers served:
Revenue: $3.60q
Wages and salaries: $21,300 + $1.10q
Supplies: $0.70q
Insurance: $6,400
Miscellaneous: $3,200 + $0.20q
Required:
Prepare a report showing the company’s activity variances for December. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).