313) Brong Corporation is a shipping container refurbishment company that measures its output
by the number of containers refurbished. The company has provided the following fixed and
variable cost estimates that it uses for budgeting purposes and the actual results of operations for
March.
Fixed Element per
Month
Variable Element
per Container
Refurbished
Actual Total
for March
Revenue
$
5,900
$
108,300
Employee salaries and wages
$
49,500
$
900
$
66,000
Refurbishing materials
$
500
$
9,500
Other expenses
$
40,300
$
39,800
–
When the company prepared its planning budget at the beginning of March, it assumed that 22
containers would have been refurbished. However, 18 containers were actually refurbished
during March.
The spending variance for total expenses for March would have been closest to:
A) $5,300 U
B) $300 F
C) $5,300 F
D) $300 U
Budget
Containers refurbished (q)
Expenses:
Employee salaries and wages
($49,500 + $900q)
Refurbishing materials ($500q)
9,000
U
Other expenses ($40,300)
39,800
F
Total expenses
$
$
115,000
$
U
302
314) Brong Corporation is a shipping container refurbishment company that measures its output
by the number of containers refurbished. The company has provided the following fixed and
variable cost estimates that it uses for budgeting purposes and the actual results of operations for
March.
Fixed Element per
Month
Variable Element
per Container
Refurbished
Actual Total
for March
Revenue
$
5,900
$
108,300
Employee salaries and wages
$
49,500
$
900
$
66,000
Refurbishing materials
$
500
$
9,500
Other expenses
$
40,300
$
39,800
When the company prepared its planning budget at the beginning of March, it assumed that 22
containers would have been refurbished. However, 18 containers were actually refurbished
during March.
The variance for net operating income in the Revenue and Spending Variances column of a
report comparing actual results to the flexible budget for March would have been closest to:
A) $16,200 F
B) $1,800 U
C) $16,200 U
D) $1,800 F
315) Isadore Hospital bases its budgets on patient-visits. The hospital’s static planning budget for
July appears below:
Budgeted number of patient-visits
7,700
Supplies (@ $4.60 per patient-visit)
$
35,420
Laundry (@ $7.20 per patient-visit)
55,440
Salaries
46,200
Occupancy costs
67,760
Total
$
204,820
–
Actual results for the month were:
Actual number of patient-visits
7,800
Supplies
$
38,250
Laundry
$
61,240
Salaries
$
46,190
Occupancy costs
$
65,650
–
The spending variance for supplies costs in the flexible budget performance report for the month
is:
A) $2,370 U
B) $2,370 F
C) $2,830 F
D) $2,830 U
Actual results
$
38,250
Flexible budget ($4.60 × 7,800)
35,880
Spending variance
$
2,370
316) Isadore Hospital bases its budgets on patient-visits. The hospital’s static planning budget for
July appears below:
Budgeted number of patient-visits
7,700
Supplies (@ $4.60 per patient-visit)
$
35,420
Laundry (@ $7.20 per patient-visit)
55,440
Salaries
46,200
Occupancy costs
67,760
Total
$
204,820
Actual results for the month were:
Actual number of patient-visits
7,800
Supplies
$
38,250
Laundry
$
61,240
Salaries
$
46,190
Occupancy costs
$
65,650
The spending variance for laundry costs in the flexible budget performance report for the month
is:
A) $5,080 F
B) $5,080 U
C) $5,800 U
D) $5,800 F
Actual results
$
61,240
Flexible budget ($7.20 × 7,800)
56,160
Spending variance
$
5,080
–
317) Isadore Hospital bases its budgets on patient-visits. The hospital’s static planning budget for
July appears below:
Budgeted number of patient-visits
7,700
Supplies (@ $4.60 per patient-visit)
$
35,420
Laundry (@ $7.20 per patient-visit)
55,440
Salaries
46,200
Occupancy costs
67,760
Total
$
204,820
Actual results for the month were:
Actual number of patient-visits
7,800
Supplies
$
38,250
Laundry
$
61,240
Salaries
$
46,190
Occupancy costs
$
65,650
The spending variance for occupancy costs in the flexible budget performance report for the
month is:
A) $2,110 U
B) $2,990 U
C) $2,990 F
D) $2,110 F
Actual results
$
65,650
Flexible budget
67,760
Spending variance
$
2,100
–
318) Lenci Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During May, the company budgeted
for 5,100 units, but its actual level of activity was 5,050 units. The company has provided the
following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Fixed element
per month
Variable element
per unit
Revenue
–
$
39.60
Direct labor
$
0
$
5.50
Direct materials
0
15.70
Manufacturing overhead
41,500
1.30
Selling and administrative expenses
22,700
0.20
Total expenses
$
64,200
$
22.70
Actual results for May:
Revenue
$
197,810
Direct labor
$
28,565
Direct materials
$
80,265
Manufacturing overhead
$
47,905
Selling and administrative expenses
$
22,680
The revenue variance for May would be closest to:
A) $4,150 F
B) $2,170 F
C) $2,170 U
D) $4,150 U
Actual results
$
197,810
Flexible budget ($39.60 × 5,050)
199,980
Revenue variance
$
319) Lenci Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During May, the company budgeted
for 5,100 units, but its actual level of activity was 5,050 units. The company has provided the
following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Fixed element
per month
Variable element
per unit
Revenue
–
$
39.60
Direct labor
$
0
$
5.50
Direct materials
0
15.70
Manufacturing overhead
41,500
1.30
Selling and administrative expenses
22,700
0.20
Total expenses
$
64,200
$
22.70
Actual results for May:
Revenue
$
197,810
Direct labor
$
28,565
Direct materials
$
80,265
Manufacturing overhead
$
47,905
Selling and administrative expenses
$
22,680
The spending variance for direct materials in May would be closest to:
A) $195 U
B) $980 U
C) $980 F
D) $195 F
Actual results
$
80,265
Flexible budget [$0 + ($15.70 × 5,050)]
79,285
Spending variance
$
320) Lenci Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During May, the company budgeted
for 5,100 units, but its actual level of activity was 5,050 units. The company has provided the
following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Fixed element
per month
Variable element
per unit
Revenue
–
$
39.60
Direct labor
$
0
$
5.50
Direct materials
0
15.70
Manufacturing overhead
41,500
1.30
Selling and administrative expenses
22,700
0.20
Total expenses
$
64,200
$
22.70
Actual results for May:
Revenue
$
197,810
Direct labor
$
28,565
Direct materials
$
80,265
Manufacturing overhead
$
47,905
Selling and administrative expenses
$
22,680
The spending variance for manufacturing overhead in May would be closest to:
A) $160 U
B) $225 U
C) $225 F
D) $160 F
Actual results
$
47,905
Flexible budget [$41,500 + ($1.30 × 5,050)]
48,065
Spending variance
$
310
321) Lenci Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During May, the company budgeted
for 5,100 units, but its actual level of activity was 5,050 units. The company has provided the
following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Fixed element
per month
Variable element
per unit
Revenue
–
$
39.60
Direct labor
$
0
$
5.50
Direct materials
0
15.70
Manufacturing overhead
41,500
1.30
Selling and administrative expenses
22,700
0.20
Total expenses
$
64,200
$
22.70
Actual results for May:
Revenue
$
197,810
Direct labor
$
28,565
Direct materials
$
80,265
Manufacturing overhead
$
47,905
Selling and administrative expenses
$
22,680
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:
A) $3,595 F
B) $2,750 F
C) $2,750 U
D) $3,595 U
322) Medlar Corporation’s static planning budget for June appears below. The company bases its
budgets on machine-hours.
Budgeted number of machine-hours
8,900
Supplies (@ $2.20 per machine-hour)
$
19,580
Power (@ $3.80 per machine-hour)
33,820
Salaries
26,700
Equipment depreciation
39,160
Total
$
119,260
–
In June, the actual number of machine-hours was 9,300, the actual supplies cost was $19,760, the
actual power cost was $35,720, the actual salaries cost was $27,130, and the actual equipment
depreciation was $39,430.
The spending variance for supplies cost in the flexible budget performance report for the month
should be:
A) $180 U
B) $700 U
C) $700 F
D) $180 F
Actual results
$
19,760
Flexible budget ($2.20 × 9,300)
20,460
Spending variance
$
–
323) Medlar Corporation’s static planning budget for June appears below. The company bases its
budgets on machine-hours.
Budgeted number of machine-hours
$
8,900
Supplies (@ $2.20 per machine-hour)
19,580
Power (@ $3.80 per machine-hour)
33,820
Salaries
26,700
Equipment depreciation
39,160
Total
$
119,260
–
In June, the actual number of machine-hours was 9,300, the actual supplies cost was $19,760, the
actual power cost was $35,720, the actual salaries cost was $27,130, and the actual equipment
depreciation was $39,430.
The spending variance for power cost in the flexible budget performance report for the month
should be:
A) $1,900 F
B) $1,900 U
C) $380 U
D) $380 F
Actual results
$
35,720
Flexible budget ($3.80 × 9,300)
35,340
Spending variance
$
–
324) Medlar Corporation’s static planning budget for June appears below. The company bases its
budgets on machine-hours.
Budgeted number of machine-hours
$
8,900
Supplies (@ $2.20 per machine-hour)
19,580
Power (@ $3.80 per machine-hour)
33,820
Salaries
26,700
Equipment depreciation
39,160
Total
$
119,260
–
In June, the actual number of machine-hours was 9,300, the actual supplies cost was $19,760, the
actual power cost was $35,720, the actual salaries cost was $27,130, and the actual equipment
depreciation was $39,430.
The spending variance for equipment depreciation in the flexible budget performance report for
the month should be:
A) $1,490 F
B) $1,490 U
C) $270 U
D) $270 F
Actual results
$
39,430
Flexible budget
39,160
Spending variance
$
–
325) Rients Corporation is a service company that measures its output by the number of
customers served. The company has provided the following fixed and variable cost estimates that
it uses for budgeting purposes and the actual results of operations for October.
Fixed Element per
Month
Variable Element
per Customer
Served
Actual Total
for October
Revenue
$
4,100
$
182,900
Employee salaries and wages
$
42,300
$
1,300
$
98,800
Travel expenses
$
700
$
30,500
Other expenses
$
31,500
$
31,900
–
When the company prepared its planning budget at the beginning of October, it assumed that 39
customers would have been served. However, 44 customers were actually served during October.
The revenue variance in the Revenue and Spending Variances column of a report comparing
actual results to the flexible budget for October would have been closest to:
A) $23,000 U
B) $23,000 F
C) $2,500 F
D) $2,500 U
Variances
Customers served (q)
Revenue ($4,100q)
$
$
180,400
–
326) Rients Corporation is a service company that measures its output by the number of
customers served. The company has provided the following fixed and variable cost estimates that
it uses for budgeting purposes and the actual results of operations for October.
Fixed Element per
Month
Variable Element
per Customer
Served
Actual Total
for October
Revenue
$
4,100
$
182,900
Employee salaries and wages
$
42,300
$
1,300
$
98,800
Travel expenses
$
700
$
30,500
Other expenses
$
31,500
$
31,900
–
When the company prepared its planning budget at the beginning of October, it assumed that 39
customers would have been served. However, 44 customers were actually served during October.
The spending variance for “Employee salaries and wages” for October would have been closest
to:
A) $700 F
B) $5,800 U
C) $700 U
D) $5,800 F
Customers served (q)
44
Employee salaries and wages
($42,300 + $1,300q)
–
327) Rients Corporation is a service company that measures its output by the number of
customers served. The company has provided the following fixed and variable cost estimates that
it uses for budgeting purposes and the actual results of operations for October.
Fixed Element per
Month
Variable Element
per Customer
Served
Actual Total
for October
Revenue
$
4,100
$
182,900
Employee salaries and wages
$
42,300
$
1,300
$
98,800
Travel expenses
$
700
$
30,500
Other expenses
$
31,500
$
31,900
–
When the company prepared its planning budget at the beginning of October, it assumed that 39
customers would have been served. However, 44 customers were actually served during October.
The spending variance for “Travel expenses” for October would have been closest to:
A) $300 F
B) $300 U
C) $3,200 F
D) $3,200 U
Customers served (q)
44
Travel expenses ($700q)
30,500
$
$
–
328) Rients Corporation is a service company that measures its output by the number of
customers served. The company has provided the following fixed and variable cost estimates that
it uses for budgeting purposes and the actual results of operations for October.
Fixed Element per
Month
Variable Element
per Customer
Served
Actual Total
for October
Revenue
$
4,100
$
182,900
Employee salaries and wages
$
42,300
$
1,300
$
98,800
Travel expenses
$
700
$
30,500
Other expenses
$
31,500
$
31,900
–
When the company prepared its planning budget at the beginning of October, it assumed that 39
customers would have been served. However, 44 customers were actually served during October.
The spending variance for “Other expenses” for October would have been closest to:
A) $400 F
B) $3,625 F
C) $400 U
D) $3,625 U
Customers served (q)
44
Other expenses ($31,500)
31,900
$
$
–
329) Rients Corporation is a service company that measures its output by the number of
customers served. The company has provided the following fixed and variable cost estimates that
it uses for budgeting purposes and the actual results of operations for October.
Fixed Element per
Month
Variable Element
per Customer
Served
Actual Total
for October
Revenue
$
4,100
$
182,900
Employee salaries and wages
$
42,300
$
1,300
$
98,800
Travel expenses
$
700
$
30,500
Other expenses
$
31,500
$
31,900
–
When the company prepared its planning budget at the beginning of October, it assumed that 39
customers would have been served. However, 44 customers were actually served during October.
The spending variance for total expenses for October would have been closest to:
A) $600 F
B) $9,400 U
C) $600 U
D) $9,400 F
Customers served (q)
Expenses:
Employee salaries and wages
($42,300 + $1,300q)
Travel expenses ($700q)
30,500
30,800
F
Other expenses ($31,500)
31,900
31,500
U
Total expenses
$
161,200
161,800
$
F
–
330) Rients Corporation is a service company that measures its output by the number of
customers served. The company has provided the following fixed and variable cost estimates that
it uses for budgeting purposes and the actual results of operations for October.
Fixed Element per
Month
Variable Element
per Customer
Served
Actual Total
for October
Revenue
$
4,100
$
182,900
Employee salaries and wages
$
42,300
$
1,300
$
98,800
Travel expenses
$
700
$
30,500
Other expenses
$
31,500
$
31,900
When the company prepared its planning budget at the beginning of October, it assumed that 39
customers would have been served. However, 44 customers were actually served during October.
The variance for net operating income in the Revenue and Spending Variances column of a
report comparing actual results to the flexible budget for October would have been closest to:
A) $3,100 U
B) $13,600 U
C) $3,100 F
D) $13,600 F
Customers served (q)
Revenue ($4,100q)
182,900
$
180,400
2,500
F
Expenses:
Employee salaries and wages
($42,300 + $1,300q)
Travel expenses ($700q)
30,500
30,800
300
F
Other expenses ($31,500)
31,900
31,500
400
U
Total expenses
161,200
161,800
600
F
Net operating income
21,700
$
18,600
3,100
F