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78. The activity variance for net operating income in April would be closest to:
Kuramoto Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During June, the company
budgeted for 7,600 units, but its actual level of activity was 7,560 units. The company has
provided the following data concerning the formulas to be used in its budgeting:
79. The activity variance for direct labor in June would be closest to:
80. The activity variance for selling and administrative expenses in June would be closest to:
81. The activity variance for net operating income in June would be closest to:
10-64
Nussey Clinic uses client-visits as its measure of activity. During May, the clinic budgeted
for 2,100 client-visits, but its actual level of activity was 2,050 client-visits. The clinic has provided
the following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Actual results for May:
82. The revenue variance for May would be closest to:
83. The spending variance for medical supplies in May would be closest to:
84. The spending variance for occupancy expenses in May would be closest to:
85. The overall revenue and spending variance (i.e., the variance for net operating income in
the revenue and spending variance column on the flexible budget performance report) for May
would be closest to:
10-68
Roye 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 September, the kennel budgeted for 3,300
tenant-days, but its actual level of activity was 3,330 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for September:
Data used in budgeting:
Actual results for September:
86. The revenue variance for September would be closest to:
87. The spending variance for expendables in September would be closest to:
88. The spending variance for facility expenses in September would be closest to:
89. The overall revenue and spending variance (i.e., the variance for net operating income in
the revenue and spending variance column on the flexible budget performance report) for
September would be closest to:
10-72
Macphail Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During April, the company
budgeted for 5,600 units, but its actual level of activity was 5,650 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for April:
Data used in budgeting:
Actual results for April:
90. The revenue variance for April would be closest to:
91. The spending variance for direct materials in April would be closest to:
92. The spending variance for manufacturing overhead in April would be closest to:
93. The overall revenue and spending variance (i.e., the variance for net operating income in
the revenue and spending variance column on the flexible budget performance report) for April
would be closest to:
10-76
Askland Clinic uses client-visits as its measure of activity. During October, the clinic
budgeted for 3,100 client-visits, but its actual level of activity was 3,130 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for October:
Data used in budgeting:
Actual results for October:
94. The personnel expenses in the planning budget for October would be closest to:
95. The medical supplies in the flexible budget for October would be closest to:
96. The activity variance for personnel expenses in October would be closest to:
97. The revenue variance for October would be closest to:
98. The spending variance for medical supplies in October would be closest to:
10-80
AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Blooms: Apply
Learning Objective: 10-01 Prepare a flexible budget.
Learning Objective: 10-04 Prepare a performance report that combines activity variances and revenue and spending
variances.
Level: 2 Medium
Langner Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 3,700 client-visits, but its actual level of activity was 3,740 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for February:
Data used in budgeting:
Actual results for February:
