8-621
151.
Letts Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During January, the company
budgeted for 7,000 units, but its actual level of activity was 6,970 units. The company has
provided the following data concerning the formulas to be used in its budgeting:
Fixed element
per month
Variable element
per unit
Revenue
–
$30.40
Direct labor
$0
$6.10
Direct materials
0
8.70
Manufacturing overhead
46,700
1.80
Selling and administrative expenses
27,800
0.20
Total expenses
$74,500
$16.80
The selling and administrative expenses in the planning budget for January would be
closest to:
8-622
152.
Letts Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During January, the company
budgeted for 7,000 units, but its actual level of activity was 6,970 units. The company has
provided the following data concerning the formulas to be used in its budgeting:
Fixed element
per month
Variable element
per unit
Revenue
–
$30.40
Direct labor
$0
$6.10
Direct materials
0
8.70
Manufacturing overhead
46,700
1.80
Selling and administrative expenses
27,800
0.20
Total expenses
$74,500
$16.80
$74,500
The net operating income in the planning budget for January would be closest to:
8-623
153.
Letts Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During January, the company
budgeted for 7,000 units, but its actual level of activity was 6,970 units. The company has
provided the following data concerning the formulas to be used in its budgeting:
Fixed element
per month
Variable element
per unit
Revenue
−
$30.40
Direct labor
$0
$6.10
Direct materials
0
8.70
Manufacturing overhead
46,700
1.80
Selling and administrative expenses
27,800
0.20
Total expenses
$74,500
$16.80
The direct materials in the flexible budget for January would be closest to:
8-624
154.
Shelby Boat Wash’s cost formula for its cleaning equipment and supplies is $2,200 per
month plus $34 per boat. For the month of September, the company planned for activity of
82 boats, but the actual level of activity was 32 boats. The actual cleaning equipment and
supplies for the month was $3,340.
The cleaning equipment and supplies in the planning budget for September would be
closest to:
155.
Shelby Boat Wash’s cost formula for its cleaning equipment and supplies is $2,200 per
month plus $34 per boat. For the month of September, the company planned for activity of
82 boats, but the actual level of activity was 32 boats. The actual cleaning equipment and
supplies for the month was $3,340.
The cleaning equipment and supplies in the flexible budget for September would be
closest to:
156.
Shelby Boat Wash’s cost formula for its cleaning equipment and supplies is $2,200 per
month plus $34 per boat. For the month of September, the company planned for activity of
82 boats, but the actual level of activity was 32 boats. The actual cleaning equipment and
supplies for the month was $3,340.
The spending variance for cleaning equipment and supplies in September would be
closest to:
157.
Larance Detailing’s cost formula for its materials and supplies is $2,230 per month plus $1
per vehicle. For the month of November, the company planned for activity of 75 vehicles,
but the actual level of activity was 25 vehicles. The actual materials and supplies for the
month was $2,160.
The materials and supplies in the planning budget for November would be closest to:
158.
Larance Detailing’s cost formula for its materials and supplies is $2,230 per month plus $1
per vehicle. For the month of November, the company planned for activity of 75 vehicles,
but the actual level of activity was 25 vehicles. The actual materials and supplies for the
month was $2,160.
The materials and supplies in the flexible budget for November would be closest to:
159.
Larance Detailing’s cost formula for its materials and supplies is $2,230 per month plus $1
per vehicle. For the month of November, the company planned for activity of 75 vehicles,
but the actual level of activity was 25 vehicles. The actual materials and supplies for the
month was $2,160.
The spending variance for materials and supplies in November would be closest to:
160.
Eberley Corporation’s cost formula for its manufacturing overhead is $25,700 per month
plus $10 per machine-hour. For the month of July, the company planned for activity of
5,900 machine-hours, but the actual level of activity was 5,920 machine-hours. The actual
manufacturing overhead for the month was $86,800.
The manufacturing overhead in the planning budget for July would be closest to:
161.
Eberley Corporation’s cost formula for its manufacturing overhead is $25,700 per month
plus $10 per machine-hour. For the month of July, the company planned for activity of
5,900 machine-hours, but the actual level of activity was 5,920 machine-hours. The actual
manufacturing overhead for the month was $86,800.
The manufacturing overhead in the flexible budget for July would be closest to:
162.
Eberley Corporation’s cost formula for its manufacturing overhead is $25,700 per month
plus $10 per machine-hour. For the month of July, the company planned for activity of
5,900 machine-hours, but the actual level of activity was 5,920 machine-hours. The actual
manufacturing overhead for the month was $86,800.
The spending variance for manufacturing overhead in July would be closest to:
163.
Lartey Corporation’s cost formula for its selling and administrative expense is $22,200 per
month plus $27 per unit. For the month of December, the company planned for activity of
5,300 units, but the actual level of activity was 5,270 units. The actual selling and
administrative expense for the month was $168,150.
The selling and administrative expense in the planning budget for December would be
closest to:
164.
Lartey Corporation’s cost formula for its selling and administrative expense is $22,200 per
month plus $27 per unit. For the month of December, the company planned for activity of
5,300 units, but the actual level of activity was 5,270 units. The actual selling and
administrative expense for the month was $168,150.
The selling and administrative expense in the flexible budget for December would be
closest to:
165.
Lartey Corporation’s cost formula for its selling and administrative expense is $22,200 per
month plus $27 per unit. For the month of December, the company planned for activity of
5,300 units, but the actual level of activity was 5,270 units. The actual selling and
administrative expense for the month was $168,150.
The spending variance for selling and administrative expense in December would be
closest to:
8-636
166.
Pearse 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 December, the kennel budgeted for
3,000 tenant-days, but its actual level of activity was 2,980 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for December:
Data used in budgeting:
Fixed
element
per
month
Variable
element
per
tenant-
day
Revenue
−
$32.10
Wages and
salaries
$2,400
$7.00
Food and
supplies
900
11.30
Facility
expenses
8,600
3.50
Administrative
expenses
6,700
0.30
Total expenses
$18,600
$22.10
Actual results for December:
Revenue
$97,978
Wages and salaries
$23,530
Food and supplies
$35,224
Facility expenses
$19,780
Administrative expenses
$7,404
The net operating income in the planning budget for December would be closest to:
8-638
167.
Pearse 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 December, the kennel budgeted for
3,000 tenant-days, but its actual level of activity was 2,980 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for December:
Data used in budgeting:
Fixed
element
per
month
Variable
element
per
tenant-
day
Revenue
−
$32.10
Wages and
salaries
$2,400
$7.00
Food and
supplies
900
11.30
Facility
expenses
8,600
3.50
Administrative
expenses
6,700
0.30
Total expenses
$18,600
$22.10
Actual results for December:
Revenue
$97,978
Wages and salaries
$23,530
Food and supplies
$35,224
Facility expenses
$19,780
Administrative expenses
$7,404
The net operating income in the flexible budget for December would be closest to:
8-639
8-640
168.
Hairston Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During November, the
company budgeted for 7,700 units, but its actual level of activity was 7,720 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for November:
Data used in budgeting:
Fixed element
per month
Variable element
per unit
Revenue
−
$38.10
Direct labor
$0
$7.80
Direct materials
0
16.50
Manufacturing overhead
39,900
1.60
Selling and administrative expenses
20,600
0.20
Total expenses
$60,500
$26.10
Actual results for November:
Revenue
$293,002
Direct labor
$60,286
Direct materials
$127,010
Manufacturing overhead
$50,342
Selling and administrative
expenses
$21,104
The selling and administrative expenses in the planning budget for November would be
closest to: