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Student name:__________
1) Shiigi Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for May is to be based on 3,310 meals. The diner’s director has
provided the following cost data to use in the budget: groceries, $3.90 per meal; kitchen
operations, $4,610 per month plus $1.50 per meal; administrative expenses, $3,810 per month
plus $0.50 per meal; and fundraising expenses, $1,710 per month.
Required:
Prepare the diner’s budget for the month of May. The budget will only contain the costs listed
above; no revenues will be on the budget.
2) Rivero 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.
Fixed Element per Month
Variable Element per Container
Refurbished
Revenue $ 5,700
Employee salaries and wages $ 48,300 $ 900
Refurbishing materials $ 700
Other expenses $ 36,300
When the company prepared its planning budget at the beginning of September, it assumed that
22 containers would have been refurbished.
Required:
Prepare the company’s planning budget for September.
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3) Willow Clinic bases its budgets on patient-visits. During October, the clinic plans for a
level of activity of 2,260 patient-visits. The clinic has provided the following data concerning the
formulas it uses in its budgeting:
Fixed element per month
Variable element per patient–
visit
Revenue $ 0 $ 70.00
Personnel expenses $ 24,800 $ 27.00
Medical supplies $ 860 $ 7.50
Occupancy expenses $ 5,600 $ 3.30
Administrative expenses $ 4,260 $ 15.20
Required:
Prepare the clinic’s planning budget for October.
4) Muehlberger 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.
Fixed Element per Month
Variable Element per Customer
Served
Revenue $ 4,800
Employee salaries and wages $ 58,200 $ 1,300
Travel expenses $ 500
Other expenses $ 40,800
A total of 28 customers were actually served during April.
Required:
Prepare a flexible budget for the actual level of activity for April.
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5) During June, Tarras Corporation plans to serve 53,000 customers. The company uses the
following revenue and cost formulas in its budgeting, where q is the number of customers
served:
Revenue: $4.54q
Wages and salaries: $35,300 + $1.74q
Supplies: $0.94q
Insurance: $22,000
Miscellaneous expense: $6,300 + $0.64q
Required:
Prepare the company’s planning budget for June.
6) During September, Clendennen Corporation budgeted for 29,000 customers, but actually
served 27,000 customers. The company uses the following revenue and cost formulas in its
budgeting, where q is the number of customers served:
Revenue: $4.84q
Wages and salaries: $35,400 + $1.75q
Supplies: $0.65q
Insurance: $12,400
Miscellaneous expense: $5,400 + $0.15q
Required:
Prepare the company’s flexible budget for September based on the actual level of activity for
the month.
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7) Rameriz 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.
Fixed Element per Month
Variable Element per Container
Refurbished
Revenue $ 4,900
Employee salaries and wages $ 42,800 $ 1,200
Refurbishing materials $ 700
Other expenses $ 38,200
A total of 34 containers were actually refurbished during May.
Required:
Prepare a flexible budget for the actual level of activity for May.
8) Brookings Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed Element per Month Variable
Element per Well Serviced
Revenue $ 4,500
Employee salaries and wages $ 48,100 $ 1,000
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Servicing materials $ 600
Other expenses $ 38,700
When the company prepared its planning budget at the beginning of August, it assumed that 34
wells would have been serviced.
Required:
Prepare the company’s planning budget for August.
9) Elvin Hospital bases its budgets on patient-visits. The hospital’s static planning budget for
May appears below:
Budgeted number of patient-visits 9,300
Budgeted variable costs:
Supplies (@ $8.54 per patient-visit) $ 79,422
Laundry (@ $8.04 per patient-visit) 74,772
Budgeted fixed costs:
Wages and salaries 99,300
Occupancy costs 80,330
Total expense $ 333,824
Required:
Prepare a flexible budget for 9,800 patient-visits per month.
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10) Varcoe Corporation bases its budgets on the activity measure customers served. During
September, the company planned to serve 39,000 customers, but actually served 34,000
customers. Revenue is $3.98 per customer served. Wages and salaries are $35,900 per month
plus $1.38 per customer served. Supplies are $0.68 per customer served. Insurance is $10,100
per month. Miscellaneous expenses are $8,200 per month plus $0.38 per customer served.
Required:
Prepare a report showing the company’s activity variances for September. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
11) Quesnel Clinic bases its budgets on the activity measure patient-visits. During February,
the clinic planned for 4,600 patient-visits, but its actual level of activity was 4,800 patient-visits.
The clinic has provided the following data concerning the formulas it uses in its budgeting:
Fixed element per month Variable element per patient-visit
Revenue $ 0 $ 32.80
Personnel expenses $ 32,100 $ 10.20
Medical supplies $ 2,100 $ 6.20
Occupancy expenses $ 7,100 $ 2.20
Administrative expenses $ 6,100 $ 0.22
Required:
Prepare a report showing the clinic’s activity variances for February. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
12) Varriano Corporation bases its budgets on the activity measure customers served. During
October, the company planned to serve 35,000 customers, but actually served 33,000 customers.
The company has provided the following data concerning the formulas it uses in its budgeting:
Fixed element per month Variable element per customer
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Revenue $ 0 $ 3.80
Wages and salaries $ 36,900 $ 1.20
Supplies $ 0 $ 0.50
Insurance $ 7,900 $ 0.00
Miscellaneous expense $ 6,900 $ 0.40
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).
13) Adamyan Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for May was based on 3,200 meals, but the diner actually served
3,400 meals. The diner’s director has provided the following cost data to use in the budget:
groceries, $4.50 per meal; kitchen operations, $5,200 per month plus $1.78 per meal;
administrative expenses, $4,200 per month plus $0.43 per meal; and fundraising expenses,
$2,200 per month. The director has also provided the diner’s statement of actual expenses for the
month:
Adamyan Urban Diner
Statement of Expenses
For the Month Ended May 31
Actual meals 3,400
Groceries $ 15,250
Kitchen operations 11,000
Administrative expenses 5,482
Fundraising expenses 2,200
Total expense $ 33,932
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses
for May.
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14) Arrasmith Corporation uses customers served as its measure of activity. During February,
the company budgeted for 36,700 customers, but actually served 27,300 customers. The
company uses the following revenue and cost formulas in its budgeting, where q is the number of
customers served:
Revenue: $5.20q
Wages and salaries: $34,900 + $1.61q
Supplies: $1.01q
Insurance: $12,100
Miscellaneous expenses: $8,100 + $0.47q
The company reported the following actual results for February:
Revenue $ 153,800
Wages and salaries $ 69,700
Supplies $ 16,100
Insurance $ 12,100
Miscellaneous expense $ 26,200
Required:
Prepare the company’s flexible budget performance report for February. Label each variance as
favorable (F) or unfavorable (U).
15) Bickel Corporation uses customers served as its measure of activity. The following report
compares the planning budget to the actual operating results for the month of November:
Bickel Corporation
Comparison of Actual Results to Planning Budget
For the Month Ended November 30
Actual Results Planning Budget Variances
Customers served 35,000 34,000
Revenue ($3.50q) $ 122,100 $ 119,000 $ 3,100 F
Expenses:
Wages and salaries ($23,400 + $1.24q) 66,800 65,560 1,240
U
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Supplies ($0.64q) 19,560 21,760 2,200 F
Insurance ($5,300) 5,300 5,300 0 None
Miscellaneous expense ($4,300 + $0.33q) 13,320 15,520 2,200
F
Total expense 104,980 108,140 3,160 F
Net operating income $ 17,120 $ 10,860 $ 6,260 F
Required:
Prepare the company’s flexible budget performance report for November. Label each variance
as favorable (F) or unfavorable (U).
16) Laizure Clinic uses patient-visits as its measure of activity. The clinic bases its budgets
on the following information: Revenue should be $65.90 per patient-visit. Personnel expenses
should be $36,700 per month plus $16.80 per patient-visit. Medical supplies should be $3,000
per month plus $12.20 per patient-visit. Occupancy expenses should be $9,400 per month plus
$7.00 per patient-visit. Administrative expenses should be $4,900 per month plus $5.10 per
patient-visit.
The clinic reported the following actual results for November:
Patient-visits 2,900
Revenue $ 214,240
Personnel expenses $ 92,320
Medical supplies $ 42,640
Occupancy expenses $ 21,750
Administrative expenses $ 12,150
Required:
Prepare a report showing the clinic’s revenue and spending variances for November. Label
each variance as favorable (F) or unfavorable (U).
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17) Nobriga Corporation uses customers served as its measure of activity. During October,
the company budgeted for 29,000 customers, but actually served 33,000 customers. The
company has provided the following data concerning the formulas used in its budgeting and its
actual results for October:
Data used in budgeting:
Fixed element per month Variable element per customer
Revenue $ 0 $ 2.90
Wages and salaries $ 25,500 $ 0.80
Supplies $ 0 $ 0.30
Insurance $ 6,000 $ 0.00
Miscellaneous expense $ 3,700 $ 0.40
Actual results for October:
Revenue $ 94,500
Wages and salaries $ 51,100
Supplies $ 12,100
Insurance $ 3,600
Miscellaneous expense $ 16,900
Required:
Prepare a report showing the company’s revenue and spending variances for October. Label
each variance as favorable (F) or unfavorable (U).
18) Tuton Memorial Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for July was based on 3,200 meals. The diner’s director has
provided the following cost formulas to use in budgets:
Fixed element per month Variable element per meal
Groceries $ 0 $ 2.75
Kitchen operations $ 4,000 $ 1.00
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Administrative expenses $ 3,700 $ 0.70
Fundraising expenses $ 1,400 $ 0.00
The director has also provided the diner’s statement of actual expenses for the month:
Tuton Memorial Diner
Statement of Expenses
For the Month Ended July 31
Actual meals 3,300
Groceries $ 9,005
Kitchen operations 7,310
Administrative expenses 5,910
Fundraising expenses 1,380
Total expense $ 23,605
Required:
Prepare a report showing the spending variances for each of the expenses and for total expenses
for July. Label each variance as favorable (F) or unfavorable (U).
19) Lubinsky Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed Element per Month Variable Element per Well Serviced
Revenue $ 4,300
Employee salaries and wages $ 40,800 $ 1,300
Servicing materials $ 500
Other expenses $ 29,000
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When the company prepared its planning budget at the beginning of August, it assumed that 28
wells would have been serviced. However, 31 wells were actually serviced during August.
Required:
Prepare a report showing the company’s activity variances for August. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
20) Blakesley 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.
Fixed Element per Month Variable Element per Customer Served
Revenue $ 4,200
Employee salaries and wages $ 51,000 $ 1,000
Travel expenses $ 500
Other expenses $ 39,700
When the company prepared its planning budget at the beginning of January, it assumed that 38
customers would have been served. However, 42 customers were actually served during January.
Required:
Prepare a report showing the company’s activity variances for January. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
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21) Roberds Tech is a for-profit vocational school. The school bases its budgets on two
measures of activity (i.e., cost drivers), namely student and course. The school uses the following
data in its budgeting:
Fixed element per month Variable element per student Variable
element per course
Revenue $ 0 $ 233 $ 0
Faculty wages $ 0 $ 0 $ 2,970
Course supplies $ 0 $ 39 $ 27
Administrative expenses $ 25,850 $ 14 $ 39
In March, the school budgeted for 1,780 students and 75 courses. The school’s income statement
showing the actual results for the month appears below:
Roberds Tech
Income Statement
For the Month Ended March 31
Actual students 1,680
Actual courses 78
Revenue $ 346,340
Expenses:
Faculty wages 208,450
Course supplies 56,090
Administrative expenses 53,562
Total expense 318,102
Net operating income $ 28,238
Required:
Prepare a flexible budget performance report showing both the school’s activity variances and
revenue and spending variances for March. Label each variance as favorable (F) or unfavorable
(U).
22) Otomo Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company
bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One
vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company
uses the following data in its budgeting:
Fixed element per month Variable element per guest Variable element
per jeep
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Revenue $ 0 $ 94 $ 0
Tour guide wages $ 0 $ 0 $ 110
Vehicle expenses $ 4,000 $ 7 $ 60
Administrative expenses $ 1,000 $ 1 $ 0
In July, the company budgeted for 360 guests and 130 jeeps. The company’s income statement
showing the actual results for the month appears below:
Otomo Jeep Tours
Income Statement
For the Month Ended July 31
Actual guests 350
Actual jeeps 132
Revenue $ 32,840
Expenses:
Tour guide wages 14,270
Vehicle expenses 14,490
Administrative expenses 1,350
Total expense 30,110
Net operating income $ 2,730
Required:
Prepare a report showing the company’s activity variances for July. Label each variance as
favorable (F) or unfavorable (U).
23) Bruer Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company
bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One
vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company
uses the following data in its budgeting:
Fixed element per month Variable element per guest Variable element
per jeep
Revenue $ 0 $ 189 $ 0
Tour guide wages $ 0 $ 0 $ 175
Vehicle expenses $ 6,300 $ 28 $ 52
Administrative expenses $ 3,400 $ 15 $ 0
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In November, the company budgeted for 376 guests and 171 jeeps. The actual activity for the
month was 387 guests and 153 jeeps.
Required:
Prepare a report showing the company’s activity variances for November. Label each variance as
favorable (F) or unfavorable (U).
24) Smith 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 February.
Fixed Element per Month Variable Element per Container Refurbished
Actual Total for February
Revenue $ 4,900 $ 129,900
Employee salaries and wages $ 58,400 $ 1,000 $ 84,200
Refurbishing materials $ 500 $ 13,200
Other expenses $ 39,100 $ 38,900
When the company prepared its planning budget at the beginning of February, it assumed that
31 containers would have been refurbished. However, 26 containers were actually refurbished
during February.
Required:
Prepare a report showing the company’s revenue and spending variances for February. Indicate
in each case whether the variance is favorable (F) or unfavorable (U).
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25) Thorman 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 August.
Fixed Element per Month Variable Element per Customer Served
Actual Total for August
Revenue $ 4,400 $ 174,100
Employee salaries and wages $ 44,400 $ 1,300 $ 93,600
Travel expenses $ 700 $ 27,700
Other expenses $ 38,300 $ 38,100
When the company prepared its planning budget at the beginning of August, it assumed that 35
customers would have been served. However, 39 customers were actually served during August.
Required:
Prepare a report showing the company’s revenue and spending variances for August. Indicate in
each case whether the variance is favorable (F) or unfavorable (U).
26) Cryan Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company
bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One
vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company
uses the following data in its budgeting:
Fixed element per month Variable element per guest Variable element
per jeep
Revenue $ 0 $ 137 $ 0
Tour guide wages $ 0 $ 0 $ 169
Vehicle expenses $ 4,800 $ 7 $ 62
Administrative expenses $ 1,300 $ 6 $ 0
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In May, the company budgeted for 457 guests and 162 jeeps. The company’s income statement
showing the actual results for the month appears below:
Cryan Jeep Tours
Income Statement
For the Month Ended May 31
Actual guests 472
Actual jeeps 157
Revenue $ 59,854
Expenses:
Tour guide wages 26,757
Vehicle expenses 16,640
Administrative expenses 3,888
Total expense 47,285
Net operating income $ 12,569
Required:
Prepare a report showing the company’s revenue and spending variances for May. Label each
variance as favorable (F) or unfavorable (U).
27) Klingshirn 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 December.
Fixed Element per Month Variable Element per Customer Served
Actual Total for December
Revenue $ 5,400 $ 126,800
Employee salaries and wages $ 44,500 $ 1,300 $ 73,400
Travel expenses $ 600 $ 13,400
Other expenses $ 41,900 $ 42,700
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When the company prepared its planning budget at the beginning of December, it assumed that
25 customers would have been served. However, 23 customers were actually served during
December.
Required:
Prepare a performance report showing the company’s activity and revenue and spending
variances for December. Indicate in each case whether the variance is favorable (F) or
unfavorable (U).
28) Carlino Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes and the actual results of operations for April.
Fixed Element per Month Variable Element per Well Served Actual
Total for April
Revenue $ 4,800 $ 126,900
Employee salaries and wages $ 43,000 $ 1,100 $ 73,600
Servicing materials $ 500 $ 13,600
Other expenses $ 31,600 $ 31,300
When the company prepared its planning budget at the beginning of April, it assumed that 24
wells would have been serviced. However, 26 wells were actually serviced during April.
Required:
Prepare a performance report showing the company’s activity and revenue and spending
variances for April. Indicate in each case whether the variance is favorable (F) or unfavorable
(U).
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29) Mcinerney Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The
company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and
jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide.
The company uses the following data in its budgeting:
Fixed element per month Variable element per guest Variable element
per jeep
Revenue $ 0 $ 166 $ 0
Tour guide wages $ 0 $ 0 $ 133
Vehicle expenses $ 4,650 $ 23 $ 76
Administrative expenses $ 3,350 $ 16 $ 0
In October, the company budgeted for 340 guests and 106 jeeps. The actual activity for the
month was 415 guests and 156 jeeps.
Required:
Prepare the company’s flexible budget for the actual level of activity in October.
30) A.L.T. Furniture, Incorporated is a chair repair company. The company bases its budgets
and performance reports on two measures of activity (i.e., cost drivers), chairs repaired and
repair hours. Each chair is repaired for a flat fee regardless of the hours worked on the chair. The
company uses the following data in its budgeting:
Fixed Element per Month Variable Element chair Variable element
per repair hour Actual Total for January
Revenue $ 0 $ 180 $ 0 $ 33,900
Repair labor wages $ 0 $ 0 $ 16 $ 12,000
Repair tools and material $ 4,000 $ 35 $ 0 $ 11,700
Other expenses $ 6,000 $ 0 $ 0 $ 5,800
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In January, the company budgeted for 183 chairs and 889 repair hours. The actual activity for
the month was 190 chairs and 732 hours.
Required:
Prepare a planning budget, a flexible budget, and a performance report showing the company’s
activity and revenue and spending variances for January. On the performance report indicate in
each case whether the variance is favorable (F) or unfavorable (U).
31) Reef Slithering Riverboat Tours is a tour boat company that takes guests on a tour of the
Mississippi river. The company bases its budgets on two measures of activity (i.e., cost drivers),
guests and riverboats. Each time a riverboat is used in a tour it counts as one riverboat for
budgeting purposes. Each riverboat has one tour guide. The company uses the following data in
its budgeting:
Fixed element per month Variable element per guest Variable element
per riverboat Actual Total for August
Revenue $ 0 $ 27 $ 0 $ 19,200
Tour guide wages $ 0 $ 0 $ 201 $ 4,100
Vehicle expenses $ 9,100 $ 3 $ 42 $ 10,500
Administrative expenses $ 4,100 $ 0 $ 0 $ 4,200
During August, the company budgeted for 22 riverboats and 785 guests. The actual activity for
August was 19 riverboats 710 guests.
Required:
Prepare a planning budget, a flexible budget, and a performance report showing the company’s
activity and revenue and spending variances for August. On the performance report indicate in
each case whether the variance is favorable (F) or unfavorable (U).
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32) The net operating income (loss) in the planning budget for October would be:
A) $(35,960)
B) $(2,145)
C) $2,240
D) $7,850
33) The net operating income (loss) in the flexible budget for October would be:
A) $(35,960)
B) $(2,145)
C) $2,240
D) $7,850
34) The activity variance for revenue in October would be:
A) $22,500 F
B) $9,480 F
C) $22,500 U
D) $9,480 U
35) The activity variance for expenses in October would be:
A) $5,095 F
B) $15,700 F
C) $5,095 U
D) $15,700 U
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36) The activity variance for net operating income in October would be:
A) $38,200 F
B) $33,815 F
C) $38,200 U
D) $33,815 U
37) 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
October would be:
A) $38,200 F
B) $33,815 F
C) $38,200 U
D) $33,815 U
38) Shiigi Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for May is to be based on 3,300 meals. The diner’s director has
provided the following cost data to use in the budget: groceries, $3.80 per meal; kitchen
operations, $4,600 per month plus $1.25 per meal; administrative expenses, $3,800 per month
plus $0.40 per meal; and fundraising expenses, $1,700 per month.
Required:
Prepare the diner’s budget for the month of May. The budget will only contain the costs listed
above; no revenues will be on the budget.
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39) Mansour Memorial Diner is a charity supported by donations that provides free meals to
the homeless. The diner’s budget for February was based on 3,000 meals, but the diner actually
served 3,400 meals. The diner’s director has provided the following cost formulas to use in
budgets:
Fixed element per month Variable element per meal
Groceries $ 0 $ 2.20
Kitchen operations $ 4,100 $ 1.90
Administrative expenses $ 3,600 $ 0.60
Fundraising expenses $ 1,100 $ 0.00
Required:
Prepare the diner’s flexible budget for the actual number of meals served in February. The
budget will only contain the costs listed above; no revenues will be on the budget.
40) Willow Clinic bases its budgets on patient-visits. During October, the clinic plans for a
level of activity of 2,100 patient-visits. The clinic has provided the following data concerning the
formulas it uses in its budgeting:
Fixed element per month Variable element per patient-visit
Revenue $ 0 $ 38.00
Personnel expenses $ 23,200 $ 11.00
Medical supplies $ 700 $ 5.90
Occupancy expenses $ 4,800 $ 1.70
Administrative expenses $ 4,100 $ 0.10
Required:
Prepare the clinic’s planning budget for October.
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41) During September, Ferman Clinic budgeted for 3,800 patient-visits, but its actual level of
activity was 4,100 patient-visits. The clinic uses the following revenue and cost formulas in its
budgeting, where q is the number of patient-visits:
Revenue: $21.60q
Personnel expenses: $22,600 + $6.60q
Medical supplies: $1,000 + $2.60q
Occupancy expenses: $6,000 + $0.90q
Administrative expenses: $4,300 + $0.30q
Required:
Prepare the clinic’s flexible budget for September based on the actual level of activity for the
month.
42) Luckman Corporation bases its budgets on the activity measure customers served. During
July, the company plans to serve 32,000 customers. The company has provided the following
data concerning the formulas it uses in its budgeting:
Fixed element per month Variable element per customer
Revenue $ 0 $ 3.70
Wages and salaries $ 29,300 $ 1.10
Supplies $ 0 $ 0.70
Insurance $ 8,400 $ 0.00
Miscellaneous expense $ 4,600 $ 0.30
Required:
Prepare the company’s planning budget for July.
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43) During June, Tarras Corporation plans to serve 36,000 customers. The company uses the
following revenue and cost formulas in its budgeting, where q is the number of customers
served:
Revenue: $3.50q
Wages and salaries: $35,100 + $0.90q
Supplies: $0.70q
Insurance: $8,500
Miscellaneous expense: $4,100 + $0.30q
Required:
Prepare the company’s planning budget for June.
44) During September, Clendennen Corporation budgeted for 24,000 customers, but actually
served 27,000 customers. The company uses the following revenue and cost formulas in its
budgeting, where q is the number of customers served:
Revenue: $6.00q
Wages and salaries: $36,700 + $2.10q
Supplies: $1.10q
Insurance: $12,600
Miscellaneous expense: $4,600 + $0.30q
Required:
Prepare the company’s flexible budget for September based on the actual level of activity for the
month.
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45) During December, Hynes Corporation plans to serve 35,000 customers. Revenue is $2.00
per customer served. Wages and salaries are $24,600 per month plus $0.50 per customer served.
Supplies are $0.30 per customer served. Insurance is $5,400 per month. Miscellaneous expenses
are $4,100 per month plus $0.10 per customer served.
Required:
Prepare the company’s planning budget for December.
46) During October, Fryer Corporation budgeted for 30,000 customers, but actually served
33,000 customers. Revenue should be $2.90 per customer served. Wages and salaries should be
$27,200 per month plus $0.80 per customer served. Supplies should be $0.60 per customer
served. Insurance should be $6,700 per month. Miscellaneous expenses should be $3,100 per
month plus $0.10 per customer served.
Required:
Prepare the company’s flexible budget for October based on the actual level of activity for the
month.
47) During April, Shvey Clinic plans for an activity level of 2,100 patient-visits. Revenue is
$48.10 per patient-visit. Personnel expenses are $28,800 per month plus $12.30 per patient-visit.
Medical supplies are $1,300 per month plus $8.10 per patient-visit. Occupancy expenses are
$8,100 per month plus $2.00 per patient-visit. Administrative expenses are $2,900 per month
plus $0.20 per patient-visit.
Required:
Prepare the clinic’s planning budget for April.
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48) Pargo Corporation bases its budgets on the activity measure customers served. During
May, the company planned to serve 29,000 customers, but actually served 30,000 customers. The
company has provided the following data concerning the formulas it uses in its budgeting:
Fixed element per month Variable element per customer
Revenue $ 0 $ 4.30
Wages and salaries $ 32,700 $ 1.50
Supplies $ 0 $ 0.70
Insurance $ 7,600 $ 0.00
Miscellaneous expense $ 7,100 $ 0.30
Required:
Prepare the company’s flexible budget for May based on the actual level of activity for the
month.
49) Elvin Hospital bases its budgets on patient-visits. The hospital’s static planning budget for
May appears below:
Budgeted number of patient-visits 5,100
Budgeted variable costs:
Supplies (@ $2.70 per patient-visit) $ 13,770
Laundry (@ $3.00 per patient-visit) 15,300
Budgeted fixed costs:
Wages and salaries 16,830
Occupancy costs 16,890
Total expense $ 62,790
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Required:
Prepare a flexible budget for 5,300 patient-visits per month.
50) Ruiz Clinic bases its budgets on the activity measure patient-visits. During July, the clinic
planned for an activity level of 3,700 patient-visits, but the activity level was actually 3,600
patient-visits. The clinic has provided the following data concerning the formulas it uses in its
budgeting:
Fixed element per month Variable element per patient-visit
Revenue $ 0 $ 22.80
Personnel expenses $ 24,200 $ 6.80
Medical supplies $ 1,200 $ 3.30
Occupancy expenses $ 5,000 $ 0.80
Administrative expenses $ 3,100 $ 0.30
Required:
Prepare the clinic’s flexible budget for July based on the actual level of activity for the month.
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51) Westby Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for February was based on 3,900 meals, but the diner actually
served 4,400 meals. The diner’s director has provided the following cost data to use in the
budget: groceries, $3.05 per meal; kitchen operations, $5,500 per month plus $1.40 per meal;
administrative expenses, $3,300 per month plus $0.80 per meal; and fundraising expenses,
$1,500 per month.
Required:
Prepare the diner’s flexible budget for the actual number of meals served in February. The
budget will only contain the costs listed above; no revenues will be on the budget.
52) Wytch Corporation bases its budgets on machine-hours. The company’s static planning
budget for February appears below:
Budgeted number of machine-hours 6,000
Budgeted variable costs:
Supplies (@ $6.90 per machine-hour) $ 41,400
Power (@ $3.70 per machine-hour) 22,200
Budgeted fixed costs:
Salaries 51,600
Equipment depreciation 26,400
Total expense $ 141,600
Required:
Prepare a flexible budget for 6,400 machine-hours per month.
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53) Barrom Memorial Diner is a charity supported by donations that provides free meals to
the homeless. The diner’s budget for July is to be based on 2,000 meals. The diner’s director has
provided the following cost formulas to use in the budget:
Fixed element per month Variable element per customer
Groceries $ 0 $ 2.50
Kitchen operations $ 5,200 $ 1.40
Administrative expenses $ 2,900 $ 0.75
Fundraising expenses $ 1,100 $ 0.00
Required:
Prepare the diner’s budget for the month of July. The budget will only contain the costs listed
above; no revenues will be on the budget.
54) During February, Barreca Clinic plans for an activity level of 2,700 patient-visits. The
clinic uses the following revenue and cost formulas in its budgeting, where q is the number of
patient-visits:
Revenue: $49.10q
Personnel expenses: $34,100 + $13.20q
Medical supplies: $1,300 + $9.40q
Occupancy expenses: $8,300 + $1.40q
Administrative expenses: $6,100 + $0.30q
Required:
Prepare the clinic’s planning budget for February.
Version 1 31
55) During June, Montera Clinic budgeted for 3,800 patient-visits, but its actual level of
activity was 3,400 patient-visits. Revenue should be $25.20 per patient-visit. Personnel expenses
should be $22,600 per month plus $7.00 per patient-visit. Medical supplies should be $800 per
month plus $4.80 per patient-visit. Occupancy expenses should be $6,900 per month plus $0.90
per patient-visit. Administrative expenses should be $4,800 per month plus $0.40 per patient-
visit.
Required:
Prepare the clinic’s flexible budget for June based on the actual level of activity for the month.
56) Varcoe Corporation bases its budgets on the activity measure customers served. During
September, the company planned to serve 30,000 customers, but actually served 25,000
customers. Revenue is $3.80 per customer served. Wages and salaries are $34,100 per month
plus $1.20 per customer served. Supplies are $0.50 per customer served. Insurance is $8,300 per
month. Miscellaneous expenses are $6,400 per month plus $0.20 per customer served.
Required:
Prepare a report showing the company’s activity variances for September. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
57) Solimini Memorial Diner is a charity supported by donations that provides free meals to
the homeless. The diner’s budget for January was based on 3,900 meals, but the diner actually
served 3,400 meals. The diner’s director has provided the following cost formulas to use in
budgets:
Fixed element per month Variable element per meal
Groceries $ 0 $ 2.20
Kitchen operations $ 4,400 $ 1.75
Administrative expenses $ 3,500 $ 0.15
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Fundraising expenses $ 1,400 $ 0.00
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses
for January. Label each variance as favorable (F) or unfavorable (U).
58) Quesnel Clinic bases its budgets on the activity measure patient-visits. During February,
the clinic planned for 2,800 patient-visits, but its actual level of activity was 3,000 patient-visits.
The clinic has provided the following data concerning the formulas it uses in its budgeting:
Fixed element per month Variable element per patient-visit
Revenue $ 0 $ 28.00
Personnel expenses $ 21,800 $ 8.30
Medical supplies $ 800 $ 4.10
Occupancy expenses $ 6,000 $ 1.00
Administrative expenses $ 2,800 $ 0.10
Required:
Prepare a report showing the clinic’s activity variances for February. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
59) Chaloux Clinic bases its budgets on the activity measure patient-visits. During July, the
clinic planned for 3,100 patient-visits. The clinic has provided the following data concerning the
formulas it uses in its budgeting:
Fixed element per month Variable element per customer
Revenue $ 0 $ 51.80
Personnel expenses $ 36,300 $ 16.20
Medical supplies $ 1,000 $ 9.60
Occupancy expenses $ 12,000 $ 2.60
Version 1 33
Administrative expenses $ 5,400 $ 0.10
The clinic has also furnished its income statement for July:
Chaloux Clinic
Income Statement
For the Month Ended July 31
Actual patient-visits 2,900
Revenue $ 151,280
Expenses:
Personnel expenses 81,630
Medical supplies 28,820
Occupancy expenses 20,160
Administrative expenses 5,910
Total expense 136,520
Net operating income $ 14,760
Required:
Prepare a report showing the clinic’s activity variances for July.
60) Varriano Corporation bases its budgets on the activity measure customers served. During
October, the company planned to serve 31,000 customers, but actually served 34,000 customers.
The company has provided the following data concerning the formulas it uses in its budgeting:
Fixed element per month Variable element per customer
Revenue $ 0 $ 3.60
Wages and salaries $ 35,100 $ 1.00
Supplies $ 0 $ 0.80
Insurance $ 8,700 $ 0.00
Miscellaneous expense $ 4,700 $ 0.10
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).
Version 1 34
61) Ruge Clinic bases its budgets on the activity measure patient-visits. During November,
the clinic planned for 2,100 patient-visits, but the actual level of activity was 2,300 patient-visits.
The clinic has provided the following data concerning the formulas it uses in its budgeting:
Fixed element per month Variable element per patient-visit
Revenue $ 0 $ 54.10
Personnel expenses $ 27,100 $ 18.00
Medical supplies $ 1,500 $ 8.40
Occupancy expenses $ 7,300 $ 2.00
Administrative expenses $ 3,500 $ 0.10
Required:
Prepare a report showing the clinic’s activity variances for November. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
62) Dukette Memorial Diner is a charity supported by donations that provides free meals to
the homeless. The diner’s budget for August was based on 2,600 meals, but the diner actually
served 2,200 meals. The diner’s director has provided the following cost formulas to use in
budgets:
Fixed element per month Variable element per customer
Groceries $ 0 $ 3.65
Kitchen operations $ 4,500 $ 1.15
Administrative expenses $ 2,900 $ 0.55
Fundraising expenses $ 1,300 $ 0.00
The director has also provided the diner’s statement of actual expenses for the month:
Dukette Memorial Diner
Statement of Expenses
For the Month Ended August 31
Version 1 35
Actual meals 2,200
Groceries $ 7,950
Kitchen operations 7,110
Administrative expenses 4,230
Fundraising expenses 1,270
Total expense $ 20,560
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses
for August. Label each variance as favorable (F) or unfavorable (U).
63) Felicetti Corporation bases its budgets on the activity measure customers served. During
November, the company planned to serve 21,000 customers. The company has provided the
following data concerning the formulas it uses in its budgeting:
Fixed element per month Variable element per customer
Revenue $ 0 $ 6.90
Wages and salaries $ 37,700 $ 2.70
Supplies $ 0 $ 1.10
Insurance $ 9,900 $ 0.00
Miscellaneous expense $ 6,600 $ 0.20
The company has also furnished its income statement for November
Felicetti Corporation
Income Statement
For the Month Ended November 30
Actual customers served 26,000
Revenue $ 177,900
Expenses:
Wages and salaries 108,900
Supplies 26,900
Insurance 11,900
Miscellaneous expense 14,200
Total expense 161,900
Net operating income $ 16,000
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Required:
Prepare a report showing the company’s activity variances for November. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
64) Adamyan Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for May was based on 3,700 meals, but the diner actually served
3,200 meals. The diner’s director has provided the following cost data to use in the budget:
groceries, $2.10 per meal; kitchen operations, $5,700 per month plus $1.55 per meal;
administrative expenses, $3,800 per month plus $0.35 per meal; and fundraising expenses,
$1,500 per month. The director has also provided the diner’s statement of actual expenses for the
month:
Adamyan Urban Diner
Statement of Expenses
For the Month Ended May 31
Actual meals 3,200
Groceries $ 6,560
Kitchen operations 10,130
Administrative expenses 4,760
Fundraising expenses 1,510
Total expense $ 22,960
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses
for May.
Version 1 37
65) Ginnings Corporation bases its budgets on the activity measure customers served. During
May, the company planned to serve 38,000 customers, but actually served 37,000 customers. The
company uses the following revenue and cost formulas in its budgeting, where q is the number of
customers served:
Revenue: $2.90q
Wages and salaries: $37,200 + $0.80q
Supplies: $0.40q
Insurance: $8,900
Miscellaneous expense: $6,400 + $0.10q
Required:
Prepare a report showing the company’s activity variances for May. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
66) Poling Clinic bases its budgets on the activity measure patient-visits. During July, the
clinic planned for 3,600 patient-visits, but its actual level of activity was 4,000 patient-visits.
Revenue should be $30.40 per patient-visit. Personnel expenses should be $30,000 per month
plus $9.30 per patient-visit. Medical supplies should be $1,000 per month plus $3.70 per patient-
visit. Occupancy expenses should be $9,300 per month plus $0.80 per patient-visit.
Administrative expenses should be $4,300 per month plus $0.30 per patient-visit.
Required:
Prepare a report showing the clinic’s activity variances for July. Indicate in each case whether
the variance is favorable (F) or unfavorable (U).
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67) Shevlin Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for July was based on 3,200 meals, but the diner actually served
3,600 meals. The diner’s director has provided the following cost data to use in the budget:
groceries, $3.35 per meal; kitchen operations, $5,800 per month plus $1.25 per meal;
administrative expenses, $3,400 per month plus $0.40 per meal; and fundraising expenses,
$1,400 per month.
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses
for July. Label each variance as favorable (F) or unfavorable (U).
68) Furney Clinic uses patient-visits as its measure of activity. During May, the clinic
budgeted for 3,400 patient-visits, but its actual level of activity was 3,000 patient-visits. The
clinic bases its budgets on the following information: Revenue should be $38.00 per patient-visit.
Personnel expenses should be $36,000 per month plus $10.80 per patient-visit. Medical supplies
should be $1,000 per month plus $6.00 per patient-visit. Occupancy expenses should be $9,300
per month plus $2.00 per patient-visit. Administrative expenses should be $5,500 per month plus
$0.30 per patient-visit. The clinic reported the following actual results for May:
Revenue $ 113,640
Personnel expenses $ 71,090
Medical supplies $ 18,070
Occupancy expenses $ 14,550
Administrative expenses $ 6,190
Required:
Prepare the clinic’s flexible budget performance report for May. Label each variance as
favorable (F) or unfavorable (U).
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69) Vondran Clinic uses patient-visits as its measure of activity. During December, the clinic
budgeted for 3,600 patient-visits, but its actual level of activity was 3,100 patient-visits. The
clinic 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 customer
Revenue $ 0 $ 48.50
Personnel expenses $ 38,300 $ 14.90
Medical supplies $ 1,500 $ 9.20
Occupancy expenses $ 12,900 $ 2.40
Administrative expenses $ 8,300 $ 0.20
Actual results for December:
Revenue $ 154,250
Personnel expenses $ 86,500
Medical supplies $ 29,230
Occupancy expenses $ 20,530
Administrative expenses $ 9,010
Required:
Prepare the clinic’s flexible budget performance report for December. Label each variance as
favorable (F) or unfavorable (U).
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70) Arrasmith Corporation uses customers served as its measure of activity. During February,
the company budgeted for 35,000 customers, but actually served 34,000 customers. The
company uses the following revenue and cost formulas in its budgeting, where q is the number of
customers served:
Revenue: $3.50q
Wages and salaries: $33,200 + $1.10q
Supplies: $0.50q
Insurance: $10,400
Miscellaneous expense: $6,400 + $0.30q
The company reported the following actual results for February:
Revenue $ 119,800
Wages and salaries $ 68,000
Supplies $ 14,400
Insurance $ 10,400
Miscellaneous expense $ 17,700
Required:
Prepare the company’s flexible budget performance report for February. Label each variance as
favorable (F) or unfavorable (U).
71) Wagster Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for November was based on 2,400 meals. The diner’s director has
provided the following cost data to use in the budget: groceries, $2.05 per meal; kitchen
operations, $4,500 per month plus $1.75 per meal; administrative expenses, $3,500 per month
plus $0.20 per meal; and fundraising expenses, $1,700 per month. The director has also provided
the diner’s statement of actual expenses for the month:
Wagster Urban Diner
Statement of Expenses
For the Month Ended November 30
Actual meals 2,700
Groceries $ 5,575
Kitchen operations 9,015
Administrative expenses 3,900
Fundraising expenses 1,750
Total expense $ 20,240
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Required:
Prepare a flexible budget performance report showing both the activity variances and the
spending variances for each of the expenses and for total expenses for November. Label each
variance as favorable (F) or unfavorable (U).
72) Lasserre Clinic uses patient-visits as its measure of activity. During November, the clinic
budgeted for 2,800 patient-visits, but its actual level of activity was 3,000 patient-visits. The
clinic uses the following revenue and cost formulas in its budgeting, where q is the number of
patient-visits:
Revenue: $50.40q
Personnel expenses: $36,200 + $15.60q
Medical supplies: $1,500 + $8.80q
Occupancy expenses: $8,700 + $2.80q
Administrative expenses: $4,300 + $0.40q
The clinic reported the following actual results for November:
Revenue $ 153,570
Personnel expenses $ 80,370
Medical supplies $ 27,430
Occupancy expenses $ 17,620
Administrative expenses $ 5,670
Required:
Prepare the clinic’s flexible budget performance report for November. Label each variance as
favorable (F) or unfavorable (U).
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73) Chaudhuri Memorial Diner is a charity supported by donations that provides free meals
to the homeless. The diner’s budget for April was based on 2,700 meals. The diner’s director has
provided the following cost formulas to use in budgets:
Fixed element per month Variable element per meal
Groceries $ 0 $ 3.50
Kitchen operations $ 5,900 $ 1.55
Administrative expenses $ 3,000 $ 0.75
Fundraising expenses $ 1,500 $ 0.00
The director has also provided the diner’s statement of actual expenses for the month:
Chaudhuri Memorial Diner
Statement of Expenses
For the Month Ended April 30
Actual meals 2,600
Groceries $ 9,340
Kitchen operations 10,300
Administrative expenses 4,890
Fundraising expenses 1,540
Total expense $ 26,070
Required: Prepare a flexible budget performance report showing both the activity variances
and the spending variances for each of the expenses and for total expenses for April. Label each
variance as favorable (F) or unfavorable (U).
74) Ocean Corporation uses customers served as its measure of activity. During June, the
company budgeted for 21,000 customers, but actually served 19,000 customers. The company
bases its budgets on the following information: Revenue should be $5.00 per customer served.
Wages and salaries should be $24,900 per month plus $1.80 per customer served. Supplies
should be $0.90 per customer served. Insurance should be $6,500 per month. Miscellaneous
expenses should be $3,500 per month plus $0.40 per customer served. The company reported the
following actual results for June:
Revenue $ 96,400
Wages and salaries $ 59,600
Supplies $ 18,300
Insurance $ 6,200
Miscellaneous expense $ 13,600
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Required:
Prepare the company’s flexible budget performance report for June. Label each variance as
favorable (F) or unfavorable (U).
75) Arrison Corporation uses customers served as its measure of activity. During July, the
company budgeted for 34,000 customers, but actually served 33,000 customers. The company
has provided the following data concerning the formulas used in its budgeting and its actual
results for July:
Data used in budgeting:
Fixed element per month Variable element per customer
Revenue $ 0 $ 3.50
Wages and salaries $ 31,200 $ 1.20
Supplies $ 0 $ 0.60
Insurance $ 10,000 $ 0.00
Miscellaneous expense $ 6,400 $ 0.20
Actual results for July:
Revenue $ 115,100
Wages and salaries $ 69,300
Supplies $ 22,700
Insurance $ 9,700
Miscellaneous expense $ 13,900
Required:
Prepare the company’s flexible budget performance report for July. Label each variance as
favorable (F) or unfavorable (U).
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76) Bickel Corporation uses customers served as its measure of activity. The following report
compares the planning budget to the actual operating results for the month of November:
Bickel Corporation
Comparison of Actual Results to Planning Budget
For the Month Ended November 30
Actual Results Planning Budget Variances
Customers served 24,000 25,000
Revenue ($3.60q) $ 85,700 $ 90,000 $ 4,300 U
Expenses:
Wages and salaries ($22,200 + $1.20q) 48,900 52,200 3,300
F
Supplies ($0.50q) 13,000 12,500 500 U
Insurance ($5,700) 5,600 5,700 100 F
Miscellaneous expense ($4,500 + $0.40q) 11,900 14,500 2,600
F
Total expense 79,400 84,900 5,500 F
Net operating income $ 6,300 $ 5,100 $ 1,200 F
Required:
Prepare the company’s flexible budget performance report for November. Label each variance
as favorable (F) or unfavorable (U).
77) Mellenthin Clinic uses patient-visits as its measure of activity. The following report
compares the planning budget to the actual operating results for the month of May:
Mellenthin Clinic
Comparison of Actual Results to Planning Budget
For the Month Ended May 31
Actual Results Planning Budget Variances
Patient-visits (q) 3,700 3,600
Revenue ($29.00q) $ 102,370 $ 104,400 $ 2,030 U
Expenses:
Personnel expenses ($29,400 + $8.30q) 62,870 59,280 3,590
U
Version 1 45
Medical supplies ($1,200 + $5.60q) 20,940 21,360 420 F
Occupancy expenses ($6,000 + $0.90q) 8,940 9,240 300 F
Administrative expenses ($3,600 + $0.10q) 4,100 3,960 140 U
Total expense 96,850 93,840 3,010 U
Net operating income $ 5,520 $ 10,560 $ 5,040 U
Required:
Prepare the clinic’s flexible budget performance report for May. Label each variance as
favorable (F) or unfavorable (U).
78) Sincell Corporation uses customers served as its measure of activity. During April, the
company budgeted for 22,000 customers, but actually served 24,000 customers. The company
uses the following revenue and cost formulas in its budgeting, where q is the number of
customers served:
Revenue: $4.10q
Wages and salaries: $26,000 + $1.10q
Supplies: $0.70q
Insurance: $7,100
Miscellaneous expense: $3,400 + $0.30q
The company reported the following actual results for April:
Revenue $ 100,500
Wages and salaries $ 52,200
Supplies $ 18,100
Insurance $ 8,100
Miscellaneous expense $ 11,900
Required:
Prepare a report showing the company’s revenue and spending variances for April. Label each
variance as favorable (F) or unfavorable (U).
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79) Shaak Corporation uses customers served as its measure of activity. The company bases
its budgets on the following information: Revenue should be $3.20 per customer served. Wages
and salaries should be $21,000 per month plus $0.80 per customer served. Supplies should be
$0.70 per customer served. Insurance should be $5,300 per month. Miscellaneous expenses
should be $3,100 per month plus $0.10 per customer served.
The company reported the following actual results for October:
Customers served 22,000
Revenue $ 73,300
Wages and salaries $ 40,400
Supplies $ 16,100
Insurance $ 5,500
Miscellaneous expense $ 7,400
Required:
Prepare a report showing the company’s revenue and spending variances for October. Label
each variance as favorable (F) or unfavorable (U).
80) Laizure Clinic uses patient-visits as its measure of activity. The clinic bases its budgets
on the following information: Revenue should be $55.90 per patient-visit. Personnel expenses
should be $35,700 per month plus $15.80 per patient-visit. Medical supplies should be $2,000
per month plus $11.20 per patient-visit. Occupancy expenses should be $8,400 per month plus
$2.00 per patient-visit. Administrative expenses should be $3,900 per month plus $0.10 per
patient-visit.
The clinic reported the following actual results for November:
Patient-visits $ 2,800
Revenue $ 164,240
Personnel expenses $ 82,320
Medical supplies $ 34,640
Occupancy expenses $ 13,750
Administrative expenses $ 4,150
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Required:
Prepare a report showing the clinic’s revenue and spending variances for November. Label
each variance as favorable (F) or unfavorable (U).
81) Dilley Clinic uses patient-visits as its measure of activity. During November, the clinic
budgeted for 3,100 patient-visits, but its actual level of activity was 3,500 patient-visits. The
clinic 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 customer
Revenue $ 0 $ 31.40
Personnel expenses $ 28,000 $ 8.50
Medical supplies $ 800 $ 5.30
Occupancy expenses $ 7,400 $ 0.90
Administrative expenses $ 2,900 $ 0.30
Actual results for November:
Revenue $ 109,940
Personnel expenses $ 57,830
Medical supplies $ 19,360
Occupancy expenses $ 10,110
Administrative expenses $ 3,920
Required:
Prepare a report showing the clinic’s revenue and spending variances for November. Label
each variance as favorable (F) or unfavorable (U).
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82) Kolstad Clinic uses patient-visits as its measure of activity. During September, the clinic
budgeted for 2,200 patient-visits, but its actual level of activity was 2,600 patient-visits. The
clinic uses the following revenue and cost formulas in its budgeting, where q is the number of
patient-visits:
Revenue: $61.70q
Personnel expenses: $39,000 + $16.10q
Medical supplies: $1,300 + $11.90q
Occupancy expenses: $8,200 + $2.20q
Administrative expenses: $5,900 + $0.20q
The clinic reported the following actual results for September:
Revenue $ 167,370
Personnel expenses $ 76,880
Medical supplies $ 33,500
Occupancy expenses $ 14,570
Administrative expenses $ 6,370
Required:
Prepare a report showing the clinic’s revenue and spending variances for September. Label
each variance as favorable (F) or unfavorable (U).
83) Heise Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for July was based on 3,500 meals. The diner’s director has
provided the following cost data to use in the budget: groceries, $2.35 per meal; kitchen
operations, $4,000 per month plus $1.80 per meal; administrative expenses, $2,800 per month
plus $0.60 per meal; and fundraising expenses, $1,600 per month. The director has also provided
the diner’s statement of actual expenses for the month:
Heise Urban Diner
Statement of Expenses
For the Month Ended July 31
Actual meals 3,800
Groceries $ 8,730
Kitchen operations 10,830
Administrative expenses 5,040
Fundraising expenses 1,660
Total expense $ 26,260
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Required:
Prepare a report showing the diner’s spending variances for each of the expenses and for total
expenses for July. Label each variance as favorable (F) or unfavorable (U).
84) Morles Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company
bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One
vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company
uses the following data in its budgeting:
Fixed element per month Variable element per guest Variable element
per jeep
Revenue $ 0 $ 100 $ 0
Tour guide wages $ 0 $ 0 $ 164
Vehicle expenses $ 3,700 $ 13 $ 49
Administrative expenses $ 1,600 $ 2 $ 0
In May, the company budgeted for 407 guests and 113 jeeps. The company’s income statement
showing the actual results for the month appears below:
Morles Jeep Tours
Income Statement
For the Month Ended May 31
Actual guests 402
Actual jeeps 112
Revenue $ 39,740
Expenses:
Tour guide wages 18,178
Vehicle expenses 14,604
Administrative expenses 2,374
Total expense 35,156
Net operating income $ 4,584
Required:
Prepare a flexible budget performance report showing both the company’s activity variances
and revenue and spending variances for May. Label each variance as favorable (F) or
unfavorable (U).
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85) Roberds Tech is a for-profit vocational school. The school bases its budgets on two
measures of activity (i.e., cost drivers), namely student and course. The school uses the following
data in its budgeting:
Fixed element per month Variable element per student Variable
element per course
Revenue $ 0 $ 198 $ 0
Faculty wages $ 0 $ 0 $ 2,900
Course supplies $ 0 $ 32 $ 20
Administrative expenses $ 25,500 $ 7 $ 32
In March, the school budgeted for 1,710 students and 68 courses. The school’s income statement
showing the actual results for the month appears below:
Roberds Tech
Income Statement
For the Month Ended March 31
Actual students 1,610
Actual courses 71
Revenue $ 311,340
Expenses:
Faculty wages 204,950
Course supplies 52,590
Administrative expenses 39,562
Total expense 297,102
Net operating income $ 14,238
Required:
Prepare a flexible budget performance report showing both the school’s activity variances and
revenue and spending variances for March. Label each variance as favorable (F) or unfavorable
(U).
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86) Salina Clinic uses patient-visits as its measure of activity. The clinic has provided the
following report:
Salina Clinic
Comparison of Actual Results to Planning Budget
For the Month Ended February 28
Actual Results Planning Budget Variances
Patient-visits (q) 2,000 2,100
Revenue ($53.90q) $ 107,880 $ 113,190 $ 5,310 U
Expenses:
Personnel expenses ($26,100 + $19.20q) 62,840 66,420 3,580
F
Medical supplies ($1,400 + $7.20q) 16,250 16,520 270 F
Occupancy expenses ($6,700 + $2.60q) 11,970 12,160 190
F
Administrative expenses ($4,300 + $0.20q) 4,710 4,720 10 F
Total expense 95,770 99,820 4,050 F
Net operating income $ 12,110 $ 13,370 $ 1,260 U
Required:
Prepare the clinic’s flexible budget performance report for February. Label each variance as
favorable (F) or unfavorable (U).
87) Otomo Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company
bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One
vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company
uses the following data in its budgeting:
Fixed element per month Variable element per guest Variable element
per jeep
Revenue $ 0 $ 134 $ 0
Tour guide wages $ 0 $ 0 $ 117
Vehicle expenses $ 4,700 $ 13 $ 65
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Administrative expenses $ 2,200 $ 1 $ 0
In July, the company budgeted for 389 guests and 180 jeeps. The company’s income statement
showing the actual results for the month appears below:
Otomo Jeep Tours
Income Statement
For the Month Ended July 31
Actual guests 394
Actual jeeps 175
Revenue $ 53,986
Expenses:
Tour guide wages 20,435
Vehicle expenses 21,247
Administrative expenses 2,544
Total expense 44,226
Net operating income $ 9,760
Required:
Prepare a report showing the company’s activity variances for July. Label each variance as
favorable (F) or unfavorable (U).
88) Rossean Tech is a for-profit vocational school. The school bases its budgets on two
measures of activity (i.e., cost drivers), namely student and course. The school uses the following
data in its budgeting:
Fixed element per month Variable element per student Variable
element per course
Revenue $ 0 $ 354 $ 0
Faculty wages $ 0 $ 0 $ 2,300
Course supplies $ 0 $ 48 $ 40
Administrative expenses $ 41,700 $ 13 $ 21
In October, the school budgeted for 1,400 students and 127 courses. The actual activity for the
month was 1,500 students and 129 courses.
Required:
Prepare a report showing the school’s activity variances for October. Label each variance as
favorable (F) or unfavorable (U).
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89) Bruer Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company
bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One
vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company
uses the following data in its budgeting:
Fixed element per month Variable element per guest Variable element
per jeep
Revenue $ 0 $ 161 $ 0
Tour guide wages $ 0 $ 0 $ 189
Vehicle expenses $ 4,900 $ 10 $ 66
Administrative expenses $ 2,000 $ 1 $ 0
In November, the company budgeted for 348 guests and 143 jeeps. The actual activity for the
month was 373 guests and 139 jeeps.
Required:
Prepare a report showing the company’s activity variances for November. Label each variance
as favorable (F) or unfavorable (U).
90) Boan Tech is a for-profit vocational school. The school bases its budgets on two
measures of activity (i.e., cost drivers), namely student and course. The school uses the following
data in its budgeting:
Fixed element per month Variable element per student Variable
element per course
Revenue $ 0 $ 297 $ 0
Faculty wages $ 0 $ 0 $ 2,600
Course supplies $ 0 $ 38 $ 23
Administrative expenses $ 33,200 $ 15 $ 24
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In August, the school budgeted for 1,590 students and 110 courses. The school’s income
statement showing the actual results for the month appears below:
Boan Tech
Income Statement
For the Month Ended August 31
Actual students 1,290
Actual courses 105
Revenue $ 390,290
Expenses:
Faculty wages 277,890
Course supplies 52,175
Administrative expenses 54,960
Total expense 385,025
Net operating income $ 5,265
Required:
Prepare a report showing the school’s activity variances for August. Label each variance as
favorable (F) or unfavorable (U).
91) Cryan Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company
bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One
vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company
uses the following data in its budgeting:
Fixed element per month Variable element per guest Variable element
per jeep
Revenue $ 0 $ 117 $ 0
Tour guide wages $ 0 $ 0 $ 171
Vehicle expenses $ 4,600 $ 5 $ 60
Administrative expenses $ 1,100 $ 4 $ 0
In May, the company budgeted for 447 guests and 152 jeeps. The company’s income statement
showing the actual results for the month appears below:
Cryan Jeep Tours
Income Statement
For the Month Ended May 31
Actual guests 462
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Actual jeeps 147
Revenue $ 53,854
Expenses:
Tour guide wages 25,157
Vehicle expenses 15,640
Administrative expenses 2,888
Total expense 43,685
Net operating income $ 10,169
Required:
Prepare a report showing the company’s revenue and spending variances for May. Label each
variance as favorable (F) or unfavorable (U).
92) Hislop Tech is a for-profit vocational school. The school bases its budgets on two
measures of activity (i.e., cost drivers), namely student and course. The school uses the following
data in its budgeting:
Fixed element per month Variable element per student Variable
element per course
Revenue $ 0 $ 212 $ 0
Faculty wages $ 0 $ 0 $ 2,100
Course supplies $ 0 $ 37 $ 45
Administrative expenses $ 28,800 $ 6 $ 26
In June, the school budgeted for 1,910 students and 111 courses. The school’s income statement
showing the actual results for the month appears below:
Hislop Tech
Income Statement
For the Month Ended June 30
Actual students 1,810
Actual courses 106
Revenue $ 387,740
Expenses:
Faculty wages 218,200
Course supplies 72,360
Administrative expenses 41,716
Total expense 332,276
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Net operating income $ 55,464
Required:
Prepare a report showing the school’s revenue and spending variances for June. Label each
variance as favorable (F) or unfavorable (U).
93) Rizzio Tech is a for-profit vocational school. The school bases its budgets on two
measures of activity (i.e., cost drivers), namely student and course. The school uses the following
data in its budgeting:
Fixed element per month Variable element per student Variable
element per course
Revenue $ 0 $ 416 $ 0
Faculty wages $ 0 $ 0 $ 2,300
Course supplies $ 0 $ 77 $ 25
Administrative expenses $ 57,900 $ 16 $ 27
In September, the school budgeted for 1,820 students and 173 courses. The actual activity for the
month was 2,020 students and 178 courses.
Required:
Prepare the school’s planning budget for September.
94) Difabio Tech is a for-profit vocational school. The school bases its budgets on two
measures of activity (i.e., cost drivers), namely student and course. The school uses the following
data in its budgeting:
Fixed element per month Variable element per student Variable
element per course
Revenue $ 0 $ 421 $ 0
Faculty wages $ 0 $ 0 $ 2,800
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Course supplies $ 0 $ 62 $ 36
Administrative expenses $ 31,600 $ 21 $ 32
In June, the school budgeted for 1,070 students and 90 courses. The actual activity for the month
was 1,370 students and 95 courses.
Required:
Prepare the school’s flexible budget for the actual level of activity in June.
95) Mcinerney Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The
company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and
jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide.
The company uses the following data in its budgeting:
Fixed element per month Variable element per guest Variable element
per jeep
Revenue $ 0 $ 91 $ 0
Tour guide wages $ 0 $ 0 $ 118
Vehicle expenses $ 3,900 $ 8 $ 61
Administrative expenses $ 2,600 $ 1 $ 0
In October, the company budgeted for 325 guests and 91 jeeps. The actual activity for the month
was 340 guests and 96 jeeps.
Required:
Prepare the company’s flexible budget for the actual level of activity in October.
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96) Billafuerte Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The
company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and
jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide.
The company uses the following data in its budgeting:
Fixed element per month Variable element per guest Variable element
per jeep
Revenue $ 0 $ 139 $ 0
Tour guide wages $ 0 $ 0 $ 176
Vehicle expenses $ 3,100 $ 6 $ 42
Administrative expenses $ 1,700 $ 1 $ 0
In July, the company budgeted for 496 guests and 233 jeeps. The actual activity for the month
was 481 guests and 238 jeeps.
Required:
Prepare the company’s planning budget for July.
97) In a flexible budget, what will happen to fixed costs as the activity level increases?
A) The fixed cost per unit will decrease.
B) The fixed cost per unit will remain unchanged.
C) The fixed cost per unit will increase.
D) Fixed costs are not included in a flexible budget.
98) When using a flexible budget, a decrease in activity within the relevant range:
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A) decreases variable cost per unit.
B) increases variable cost per unit.
C) decreases total costs.
D) increases total costs.
99) A budget that is based on the actual activity of a period is known as a:
A) continuous budget.
B) flexible budget.
C) static budget.
D) master budget.
100) Which of the following may appear on a flexible budget performance report?
A) An unfavorable activity variance.
B) A favorable revenue variance.
C) An unfavorable spending variance.
D) All of the above may appear on a flexible budget performance report.
101) Sathre Corporation is an oil well service company that measures its output by the number
of wells serviced. The company has provided the following fixed and variable cost estimates that
it uses for budgeting purposes.
Fixed Element per Month Variable Element per Well Serviced
Revenue $4,500
Employee salaries and wages $56,400 $ 900
Servicing materials $ 700
Other expenses $35,400
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When the company prepared its planning budget at the beginning of December, it assumed that
34 wells would have been serviced. However, 32 wells were actually serviced during December.
The “Employee salaries and wages” in the flexible budget for December would have been
closest to:
A) $87,000
B) $84,600
C) $85,200
D) $89,888
102) Mongelli Family Inn is a bed and breakfast establishment in a converted 100-year-old
mansion. The Inn’s guests appreciate its gourmet breakfasts and individually decorated rooms.
The Inn’s overhead budget for the most recent month appears below:
Activity level 90 guests
Variable overhead costs:
Supplies $ 234
Laundry 315
Fixed overhead costs:
Utilities 220
Salaries and wages 4,290
Depreciation 2,680
Total overhead cost $7,739
The Inn’s variable overhead costs are driven by the number of guests.
What would be the total budgeted overhead cost for a month if the activity level is 99 guests?
A) $7,793.90
B) $61,541.00
C) $8,512.90
D) $7,739.00
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103) Buckson Framing’s cost formula for its supplies cost is $1,350 per month plus $18 per
frame. For the month of June, the company planned for activity of 716 frames, but the actual
level of activity was 713 frames. The actual supplies cost for the month was $14,820. The
supplies cost in the flexible budget for June would be closest to:
A) $14,820
B) $14,184
C) $14,178
D) $14,238
104) Cosden Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed Element per Month Variable Element per Well Serviced
Revenue $4,700
Employee salaries and wages $41,300 $1,000
Servicing materials $600
Other expenses $40,200
When the company prepared its planning budget at the beginning of May, it assumed that 29
wells would have been serviced. However, 31 wells were actually serviced during May.
The total expenses in the flexible budget for May would have been closest to:
A) $133,100
B) $124,513
C) $127,900
D) $131,100
105) Herlocker 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.
Fixed Element per Month Variable Element per Container Refurbished
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Revenue $4,600
Employee salaries and wages $42,700 $1,100
Refurbishing materials $ 600
Other expenses $29,100
When the company prepared its planning budget at the beginning of February, it assumed that 26
containers would have been refurbished.
The amount shown for revenue in the planning budget for February would have been closest
to:
A) $136,300
B) $119,600
C) $133,400
D) $122,200
106) Bugos 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.
Fixed Element per Month Variable Element per Customer Served
Revenue $4,200
Employee salaries and wages $58,800 $ 900
Travel expenses $ 700
Other expenses $33,300
When the company prepared its planning budget at the beginning of March, it assumed that 40
customers would have been served.
The amount shown for “Employee salaries and wages” in the planning budget for March would
have been closest to:
A) $91,200
B) $94,800
C) $92,600
D) $102,889
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107) Dreckman 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 August.
Fixed Element per Month Variable Element per Customer Served
Actual Total for August
Revenue $4,000 $125,500
Employee salaries and wages $46,600 $ 900 $ 74,700
Travel expenses $ 600 $ 18,800
Other expenses $33,100 $ 33,500
When the company prepared its planning budget at the beginning of August, it assumed that 36
customers would have been served. However, 31 customers were actually served during August.
The “Other expenses” in the flexible budget for August would have been closest to:
A) $33,500
B) $38,903
C) $28,847
D) $33,100
108) Hamiter Framing’s cost formula for its supplies cost is $1,640 per month plus $9 per
frame. For the month of August, the company planned for activity of 572 frames, but the actual
level of activity was 573 frames. The actual supplies cost for the month was $7,080. The supplies
cost in the planning budget for August would be closest to:
A) $7,080
B) $7,068
C) $6,788
D) $6,797
109) Kirkeby 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.
Fixed Element per Month Variable Element per Container Refurbished
Revenue $4,700
Employee salaries and wages $44,200 $1,300
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Refurbishing materials $ 700
Other expenses $30,200
When the company prepared its planning budget at the beginning of May, it assumed that 32
containers would have been refurbished. However, 34 containers were actually refurbished
during May.
The “Refurbishing materials” in the flexible budget for May would have been closest to:
A) $22,682
B) $24,100
C) $22,400
D) $23,800
110) Kerekes Manufacturing Corporation has prepared the following overhead budget for next
month.
Activity level 2,200 machine-hours
Variable overhead costs:
Supplies $9,240
Indirect labor 17,820
Fixed overhead costs:
Supervision 15,300
Utilities 5,600
Depreciation 6,600
Total overhead cost $54,560
The company’s variable overhead costs are driven by machine-hours.
What would be the total budgeted overhead cost for next month if the activity level is 2,100
machine-hours rather than 2,200 machine-hours?
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A) $52,770
B) $52,080
C) $53,330
D) $54,560
111) Kerekes Manufacturing Corporation has prepared the following overhead budget for next
month.
Activity level 2,500 machine-hours
Variable overhead costs:
Supplies $12,250
Indirect labor 22,000
Fixed overhead costs:
Supervision 15,500
Utilities 5,500
Depreciation 6,500
Total overhead cost $61,750
The company’s variable overhead costs are driven by machine-hours.
What would be the total budgeted overhead cost for next month if the activity level is 2,400
machine-hours rather than 2,500 machine-hours?
A) $59,830
B) $59,280
C) $60,380
D) $61,750
112) Thilking Midwifery’s cost formula for its wages and salaries is $2,140 per month plus
$454 per birth. For the month of August, the company planned for activity of 102 births, but the
actual level of activity was 100 births. The actual wages and salaries for the month was $47,660.
The wages and salaries in the flexible budget for August would be closest to:
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A) $47,540
B) $48,448
C) $47,498
D) $47,660
113) Bonavita 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.
Fixed Element per Month Variable Element per Customer Served
Revenue $4,200
Employee salaries and wages $41,300 $1,200
Travel expenses $ 500
Other expenses $33,000
When the company prepared its planning budget at the beginning of July, it assumed that 33
customers would have been served.
The amount shown for net operating income in the planning budget for July would have been
closest to:
A) ($4,300)
B) ($1,414)
C) ($1,200)
D) $8,200
114) At Jacobson Company, indirect labor is a variable cost that varies with direct labor-hours.
Last month’s performance report showed that actual indirect labor cost totaled $5,780 for the
month and that the associated spending variance was $245 Favorable. If 24,100 direct labor-
hours were actually worked last month, then the flexible budget cost formula for indirect labor
must be (per direct labor-hour):
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A) $0.20
B) $0.25
C) $0.30
D) $0.35
115) Cardero Midwifery’s cost formula for its wages and salaries is $2,280 per month plus
$348 per birth. For the month of August, the company planned for activity of 118 births, but the
actual level of activity was 116 births. The actual wages and salaries for the month was $44,120.
The wages and salaries in the planning budget for August would be closest to:
A) $44,881
B) $44,120
C) $43,344
D) $42,648
116) Sherburne Snow Removal’s cost formula for its vehicle operating cost is $2,510 per
month plus $371 per snow-day. For the month of March, the company planned for activity of 18
snow-days, but the actual level of activity was 17 snow-days. The actual vehicle operating cost
for the month was $8,460. The vehicle operating cost in the flexible budget for March would be
closest to:
A) $8,817
B) $9,188
C) $8,460
D) $8,678
117) Faulks 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.
Fixed Element per Month Variable Element per Container Refurbished
Revenue $5,400
Employee salaries and wages $46,300 $1,200
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Refurbishing materials $ 700
Other expenses $32,400
When the company prepared its planning budget at the beginning of August, it assumed that 23
containers would have been refurbished. However, 26 containers were actually refurbished
during August.
The amount shown for total expenses in the planning budget for August would have been
closest to:
A) $111,904
B) $126,500
C) $122,400
D) $128,100
118) Barsness Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes and the actual results of operations for November.
Fixed Element per Month Variable Element per Well Serviced
Actual Total for November
Revenue $4,400 $190,100
Employee salaries and wages $56,800 $1,100 $103,400
Servicing materials $ 700 $ 29,800
Other expenses $34,800 $ 35,300
When the company prepared its planning budget at the beginning of November, it assumed that
39 wells would have been serviced. However, 43 wells were actually serviced during November.
The amount shown for “Other expenses” in the planning budget for November would have
been closest to:
A) $34,800
B) $35,300
C) $32,016
D) $35,050
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119) Ostler Hotel bases its budgets on guest-days. The hotel’s static budget for April appears
below:
Budgeted number of guest-days 8,700
Budgeted variable overhead costs:
Supplies (@$7.00 per guest-day) $ 60,900
Laundry (@$3.80 per guest-day) 33,060
Total variable overhead cost 93,960
Budgeted fixed overhead costs:
Wages and salaries 80,910
Occupancy costs 38,280
Total fixed overhead cost 119,190
Total budgeted overhead cost $213,150
The total overhead cost at an activity level of 9,700 guest-days per month should be:
A) $213,150
B) $237,650
C) $223,950
D) $224,920
120) Magliacane 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.
Fixed Element per Month Variable Element per Customer Served
Revenue $4,300
Employee salaries and wages $58,100 $1,200
Travel expenses $ 700
Other expenses $31,900
When the company prepared its planning budget at the beginning of February, it assumed that 39
customers would have been served. However, 35 customers were actually served during
February.
The revenue in the company’s flexible budget for February would have been closest to:
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A) $170,709
B) $167,700
C) $153,200
D) $150,500
121) Sharifi Hospital bases its budgets on patient-visits. The hospital’s static budget for
October appears below:
Budgeted number of patient-visits 8,400
Budgeted variable overhead costs:
Supplies (@$4.50 per patient-visit) $37,800
Laundry (@$7.50 per patient-visit) 63,000
Total variable overhead cost 100,800
Budgeted fixed overhead costs:
Wages and salaries 51,150
Occupancy costs 84,750
Total fixed overhead cost 135,900
Total budgeted overhead cost $236,700
The total overhead cost at an activity level of 9,100 patient-visits per month should be:
A) $256,425
B) $248,025
C) $245,100
D) $236,700
122) Sharifi Hospital bases its budgets on patient-visits. The hospital’s static budget for
October appears below:
Budgeted number of patient-visits 8,500
Budgeted variable overhead costs:
Supplies (@$4.70 per patient-visit) $ 39,950
Laundry (@$7.80 per patient-visit) 66,300
Total variable overhead cost 106,250
Budgeted fixed overhead costs:
Wages and salaries 50,150
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Occupancy costs 84,150
Total fixed overhead cost 134,300
Total budgeted overhead cost $240,550
The total overhead cost at an activity level of 9,200 patient-visits per month should be:
A) $260,360
B) $250,070
C) $249,300
D) $240,550
123) Picozzi Snow Removal’s cost formula for its vehicle operating cost is $2,060 per month
plus $306 per snow-day. For the month of January, the company planned for activity of 16 snow-
days, but the actual level of activity was 18 snow-days. The actual vehicle operating cost for the
month was $7,720. The vehicle operating cost in the planning budget for January would be
closest to:
A) $6,956
B) $6,862
C) $7,720
D) $7,568
124) Loughry Catering uses two measures of activity, jobs and meals, in the cost formulas in
its budgets and performance reports. The cost formula for catering supplies is $530 per month
plus $114 per job plus $16 per meal. A typical job involves serving a number of meals to guests
at a corporate function or at a host’s home. The company expected its activity in October to be 25
jobs and 234 meals, but the actual activity was 20 jobs and 233 meals. The actual cost for
catering supplies in October was $6,600. The catering supplies in the flexible budget for October
would be closest to:
A) $6,600
B) $5,699
C) $6,538
D) $7,124
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125) Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in
its budgets and performance reports. The cost formula for catering supplies is $800 per month
plus $82 per job plus $12 per meal. A typical job involves serving a number of meals to guests at
a corporate function or at a host’s home. The company expected its activity in September to be
23 jobs and 142 meals, but the actual activity was 19 jobs and 139 meals. The actual cost for
catering supplies in September was $3,820. The catering supplies in the planning budget for
September would be closest to:
A) $4,620
B) $4,390
C) $3,820
D) $4,026
126) Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in
its budgets and performance reports. The cost formula for catering supplies is $400 per month
plus $82 per job plus $10 per meal. A typical job involves serving a number of meals to guests at
a corporate function or at a host’s home. The company expected its activity in September to be
20 jobs and 144 meals, but the actual activity was 16 jobs and 141 meals. The actual cost for
catering supplies in September was $3,100. The catering supplies in the planning budget for
September would be closest to:
A) $3,875
B) $3,480
C) $3,100
D) $3,122
127) Petrus Framing’s cost formula for its supplies cost is $1,810 per month plus $8 per frame.
For the month of March, the company planned for activity of 621 frames, but the actual level of
activity was 628 frames. The actual supplies cost for the month was $6,970. The activity
variance for supplies cost in March would be closest to:
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A) $192 U
B) $56 U
C) $192 F
D) $56 F
128) Petrus Framing’s cost formula for its supplies cost is $2,300 per month plus $6 per frame.
For the month of March, the company planned for activity of 861 frames, but the actual level of
activity was 856 frames. The actual supplies cost for the month was $7,790. The activity
variance for supplies cost in March would be closest to:
A) $324 U
B) $30 F
C) $324 F
D) $30 U
129) Taussig Snow Removal’s cost formula for its vehicle operating cost is $1,880 per month
plus $394 per snow-day. For the month of February, the company planned for activity of 13
snow-days, but the actual level of activity was 14 snow-days. The actual vehicle operating cost
for the month was $7,250. The activity variance for vehicle operating cost in February would be
closest to:
A) $394 F
B) $248 U
C) $394 U
D) $248 F
130) Scharfenberg Corporation is an oil well service company that measures its output by the
number of wells serviced. 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.
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Fixed Element per Month Variable Element per Well Serviced
Actual Total for March
Revenue $5,700 $145,100
Employee salaries and wages $50,300 $1,200 $ 79,300
Servicing materials $ 700 $ 12,200
Other expenses $31,600 $ 31,400
When the company prepared its planning budget at the beginning of March, it assumed that 23
wells would have been serviced. However, 25 wells were actually serviced during March.
The activity variance for “Other expenses” for March would have been closest to:
A) $0
B) $200 F
C) $2,712 F
D) $200 U
131) Wisseman 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.
Fixed Element per Month Variable Element per Container Refurbished
Revenue $5,300
Employee salaries and wages $55,100 $ 900
Refurbishing materials $ 600
Other expenses $41,200
When the company prepared its planning budget at the beginning of September, it assumed that
28 containers would have been refurbished. However, 26 containers were actually refurbished
during September.
The activity variance for total expenses for September would have been closest to:
A) $400 F
B) $400 U
C) $3,000 U
D) $3,000 F
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132) Pattison 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.
Fixed Element per Month Variable Element per Customer Served
Revenue $5,500
Employee salaries and wages $46,300 $1,000
Travel expenses $ 500
Other expenses $32,500
When the company prepared its planning budget at the beginning of May, it assumed that 20
customers would have been served. However, 17 customers were actually served during May.
The activity variance for “Travel expenses” for May would have been closest to:
A) $1,500 U
B) $1,500 F
C) $2,000 F
D) $2,000 U
133) Ekholm 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.
Fixed Element per Month Variable Element per Container Refurbished
Revenue $4,400
Employee salaries and wages $44,900 $1,000
Refurbishing materials $ 700
Other expenses $30,800
When the company prepared its planning budget at the beginning of December, it assumed that
30 containers would have been refurbished. However, 35 containers were actually refurbished
during December.
The activity variance for “Employee salaries and wages” for December would have been
closest to:
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A) $5,000 U
B) $5,000 F
C) $4,000 U
D) $4,000 F
134) Bade Midwifery’s cost formula for its wages and salaries is $1,420 per month plus $246
per birth. For the month of October, the company planned for activity of 107 births, but the
actual level of activity was 103 births. The actual wages and salaries for the month was $27,795.
The activity variance for wages and salaries in October would be closest to:
A) $53 U
B) $984 F
C) $984 U
D) $53 F
135) Bade Midwifery’s cost formula for its wages and salaries is $1,220 per month plus $246
per birth. For the month of October, the company planned for activity of 106 births, but the
actual level of activity was 102 births. The actual wages and salaries for the month was $27,250.
The activity variance for wages and salaries in October would be closest to:
A) $46 U
B) $984 F
C) $984 U
D) $46 F
136) Rudick Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed Element per Month Variable Element per Well Serviced
Revenue $4,500
Employee salaries and wages $47,400 $1,200
Servicing materials $ 700
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Other expenses $29,500
When the company prepared its planning budget at the beginning of July, it assumed that 34
wells would have been serviced. However, 36 wells were actually serviced during July.
The activity variance for revenue for July would have been closest to:
A) $10,800 U
B) $9,000 F
C) $9,000 U
D) $10,800 F
137) Groupe 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 $36,270 per
month plus $2,064 per flight plus $1 per passenger. The company expected its activity in
October to be 87 flights and 237 passengers, but the actual activity was 86 flights and 242
passengers. The actual cost for plane operating costs in October was $211,010. The activity
variance for plane operating costs in October would be closest to:
A) $5,065 F
B) $2,059 F
C) $5,065 U
D) $2,059 U
138) Groupe 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 $48,840 per
month plus $2,381 per flight plus $7 per passenger. The company expected its activity in
October to be 63 flights and 293 passengers, but the actual activity was 61 flights and 298
passengers. The actual cost for plane operating costs in October was $199,070. The activity
variance for plane operating costs in October would be closest to:
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A) $1,824 F
B) $1,824 U
C) $4,727 U
D) $4,727 F
139) Kirnon Catering uses two measures of activity, jobs and meals, in the cost formulas in its
budgets and performance reports. The cost formula for catering supplies is $300 per month plus
$114 per job plus $16 per meal. A typical job involves serving a number of meals to guests at a
corporate function or at a host’s home. The company expected its activity in October to be 27
jobs and 224 meals, but the actual activity was 29 jobs and 227 meals. The actual cost for
catering supplies in October was $7,500. The activity variance for catering supplies in October
would be closest to:
A) $276 F
B) $276 U
C) $538 U
D) $538 F
140) Dermody Snow Removal’s cost formula for its vehicle operating cost is $3,060 per month
plus $336 per snow-day. For the month of December, the company planned for activity of 18
snow-days, but the actual level of activity was 20 snow-days. The actual vehicle operating cost
for the month was $9,385. The spending variance for vehicle operating cost in December would
be closest to:
A) $277 U
B) $277 F
C) $395 F
D) $395 U
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141) Dermody Snow Removal’s cost formula for its vehicle operating cost is $2,850 per month
plus $317 per snow-day. For the month of December, the company planned for activity of 16
snow-days, but the actual level of activity was 14 snow-days. The actual vehicle operating cost
for the month was $7,640. The spending variance for vehicle operating cost in December would
be closest to:
A) $282 U
B) $282 F
C) $352 U
D) $352 F
142) Birkner Corporation’s flexible budget performance report for last month shows that actual
indirect materials cost, a variable cost, was $30,444 and that the spending variance for indirect
materials cost was $8,142 favorable. During that month, the company worked 17,700 machine-
hours. Budgeted activity for the month had been 18,200 machine-hours. The cost formula per
machine-hour for indirect materials cost must have been closest to:
A) $1.23
B) $1.26
C) $2.12
D) $2.18
143) Tos Corporation’s flexible budget cost formula for indirect materials, a variable cost, is
$0.60 per unit of output. If the company’s performance report for last month shows an $800
unfavorable spending variance for indirect materials and if 9,000 units of output were produced
last month, then the actual costs incurred for indirect materials for the month must have been:
A) $5,600
B) $4,600
C) $5,400
D) $6,200
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144) Pittman Framing’s cost formula for its supplies cost is $1,020 per month plus $12 per
frame. For the month of November, the company planned for activity of 612 frames, but the
actual level of activity was 602 frames. The actual supplies cost for the month was $8,100. The
spending variance for supplies cost in November would be closest to:
A) $144 U
B) $264 F
C) $144 F
D) $264 U
145) Pittman Framing’s cost formula for its supplies cost is $1,150 per month plus $11 per
frame. For the month of November, the company planned for activity of 789 frames, but the
actual level of activity was 792 frames. The actual supplies cost for the month was $9,480. The
spending variance for supplies cost in November would be closest to:
A) $349 F
B) $382 U
C) $382 F
D) $349 U
146) Lightsey Natural Dying Corporation measures its activity in terms of skeins of yarn dyed.
Last month, the budgeted level of activity was 14,800 skeins and the actual level of activity was
15,100 skeins. The company’s owner budgets for dye costs, a variable cost, at $0.51 per skein.
The actual dye cost last month was $8,660. In the company’s flexible budget performance report
for last month, what would have been the spending variance for dye costs?
A) $959 U
B) $172 U
C) $1,112 U
D) $153 U
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147) Wyzard 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 February.
Fixed Element per Month Variable Element per Container Refurbished
Actual Total for February
Revenue $3,800 $123,400
Employee salaries and wages $40,000 $1,100 $ 73,800
Refurbishing materials $ 700 $ 21,800
Other expenses $29,700 $ 28,800
When the company prepared its planning budget at the beginning of February, it assumed that 37
containers would have been refurbished. However, 32 containers were actually refurbished
during February.
The revenue variance in the Revenue and Spending Variances column of a report comparing
actual results to the flexible budget for February would have been closest to:
A) $1,800 F
B) $17,200 F
C) $1,800 U
D) $17,200 U
148) Younker 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 April.
Fixed Element per Month Variable Element per Container Refurbished
Actual Total for April
Revenue $4,600 $158,600
Employee salaries and wages $46,400 $1,000 $ 79,900
Refurbishing materials $ 600 $ 20,800
Other expenses $35,800 $ 36,300
When the company prepared its planning budget at the beginning of April, it assumed that 31
containers would have been refurbished. However, 34 containers were actually refurbished
during April.
The spending variance for “Other expenses” for April would have been closest to:
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A) $3,203 F
B) $500 F
C) $500 U
D) $3,203 U
149) Aultz Tile Installation Corporation measures its activity in terms of square feet of tile
installed. Last month, the budgeted level of activity was 1,180 square feet and the actual level of
activity was 1,270 square feet. The company’s owner budgets for supply costs, a variable cost, at
$3.50 per square foot. The actual supply cost last month was $4,980. In the company’s flexible
budget performance report for last month, what would have been the spending variance for
supply costs?
A) $850 U
B) $535 U
C) $353 U
D) $315 U
150) Dunbar Footwear Corporation’s flexible budget cost formula for supplies, a variable cost,
is $2.67 per unit of output. The company’s flexible budget performance report for last month
showed a $9,604 favorable spending variance for supplies. During that month, 19,600 units were
produced. Budgeted activity for the month had been 19,200 units. The actual cost per unit for
indirect materials must have been closest to:
A) $1.73
B) $2.67
C) $2.18
D) $1.69
151) Ramkissoon Midwifery’s cost formula for its wages and salaries is $2,060 per month plus
$442 per birth. For the month of July, the company planned for activity of 117 births, but the
actual level of activity was 114 births. The actual wages and salaries for the month was $54,500.
The spending variance for wages and salaries in July would be closest to:
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A) $726 U
B) $2,052 F
C) $2,052 U
D) $726 F
152) At Rost Corporation, indirect labor is a variable cost that varies with direct labor-hours.
Last month’s performance report showed that actual indirect labor cost totaled $7,540 for the
month and that the associated spending variance was $560 F. If 10,800 direct labor-hours were
actually worked last month, then the flexible budget cost formula for indirect labor must be (per
direct labor-hour) closest to:
A) $0.75
B) $0.80
C) $0.85
D) $0.65
153) Gayner Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes and the actual results of operations for November.
Fixed Element per Month Variable Element per Well Serviced
Actual Total for November
Revenue $4,300 $148,400
Employee salaries and wages $48,900 $1,000 $ 84,000
Servicing materials $ 600 $ 20,200
Other expenses $30,300 $ 29,600
When the company prepared its planning budget at the beginning of November, it assumed that
30 wells would have been serviced. However, 34 wells were actually serviced during November.
The spending variance for “Servicing materials” for November would have been closest to:
A) $2,200 U
B) $200 U
C) $2,200 F
D) $200 F
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154) Palmerton Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes and the actual results of operations for December.
Fixed Element per Month Variable Element per Well Serviced
Actual Total for December
Revenue $3,500 $159,800
Employee salaries and wages $41,500 $1,000 $ 87,900
Servicing materials $ 600 $ 27,400
Other expenses $30,000 $ 29,500
When the company prepared its planning budget at the beginning of December, it assumed that
40 wells would have been serviced. However, 45 wells were actually serviced during December.
The variance for net operating income in the Revenue and Spending Variances column of a
report comparing actual results to the flexible budget for December would have been closest to:
A) $10,500 F
B) $10,500 U
C) $1,000 F
D) $1,000 U
155) Higgs Enterprise’s flexible budget cost formula for indirect materials, a variable cost, is
$0.75 per unit of output. If the company’s performance report for last month shows a $600
favorable spending variance for indirect materials and if 8,000 units of output were produced last
month, then the actual costs incurred for indirect materials for the month must have been:
A) $6,000
B) $5,400
C) $6,600
D) $5,200
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156) Speyer Medical Clinic measures its activity in terms of patient-visits. Last month, the
budgeted level of activity was 1,180 patient-visits and the actual level of activity was 1,170
patient-visits. The cost formula for administrative expenses is $4.20 per patient-visit plus
$23,000 per month. The actual administrative expense was $22,900. In the clinic’s flexible
budget performance report for last month, the spending variance for administrative expenses
was:
A) $5,014 F
B) $2,020 F
C) $42 F
D) $5,056 F
157) Speyer Medical Clinic measures its activity in terms of patient-visits. Last month, the
budgeted level of activity was 1,530 patient-visits and the actual level of activity was 1,490
patient-visits. The cost formula for administrative expenses is $4.00 per patient-visit plus
$15,300 per month. The actual administrative expense was $19,810. In the clinic’s flexible
budget performance report for last month, the spending variance for administrative expenses
was:
A) $820 F
B) $160 F
C) $1,450 F
D) $1,610 F
158) Wellmann 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 February.
Fixed Element per Month Variable Element per Customer Served
Actual Total for February
Revenue $4,800 $149,500
Employee salaries and wages $50,500 $1,200 $ 85,800
Travel expenses $ 600 $ 18,400
Other expenses $41,000 $ 40,100
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When the company prepared its planning budget at the beginning of February, it assumed that 35
customers would have been served. However, 31 customers were actually served during
February.
The spending variance for total expenses for February would have been closest to:
A) $3,000 F
B) $10,200 F
C) $10,200 U
D) $3,000 U
159) Mcdougald 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 March.
Fixed Element per Month Variable Element per Customer Served
Actual Total for March
Revenue $6,500 $169,700
Employee salaries and wages $58,400 $1,000 $ 83,200
Travel expenses $ 700 $ 18,600
Other expenses $41,500 $ 41,900
When the company prepared its planning budget at the beginning of March, it assumed that 21
customers would have been served. However, 26 customers were actually served during March.
The spending variance for “Employee salaries and wages” for March would have been closest
to:
A) $1,200 F
B) $3,800 F
C) $3,800 U
D) $1,200 U
160) Hirons 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 $56,990 per
month plus $2,896 per flight plus $12 per passenger. The company expected its activity in
November to be 80 flights and 250 passengers, but the actual activity was 83 flights and 252
passengers. The actual cost for plane operating costs in November was $290,150. The spending
variance for plane operating costs in November would be closest to:
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A) $1,520 U
B) $10,232 U
C) $10,232 F
D) $1,520 F
161) Hirons 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 $56,840 per
month plus $2,874 per flight plus $13 per passenger. The company expected its activity in
November to be 86 flights and 255 passengers, but the actual activity was 89 flights and 257
passengers. The actual cost for plane operating costs in November was $305,100. The spending
variance for plane operating costs in November would be closest to:
A) $2,219 U
B) $10,867 U
C) $10,867 F
D) $2,219 F
162) Herrod Catering uses two measures of activity, jobs and meals, in the cost formulas in its
budgets and performance reports. The cost formula for catering supplies is $510 per month plus
$100 per job plus $31 per meal. A typical job involves serving a number of meals to guests at a
corporate function or at a host’s home. The company expected its activity in December to be 21
jobs and 131 meals, but the actual activity was 15 jobs and 114 meals. The actual cost for
catering supplies in December was $6,050. The spending variance for catering supplies in
December would be closest to:
A) $506 F
B) $621 U
C) $506 U
D) $621 F
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163) Herrod Catering uses two measures of activity, jobs and meals, in the cost formulas in its
budgets and performance reports. The cost formula for catering supplies is $570 per month plus
$98 per job plus $24 per meal. A typical job involves serving a number of meals to guests at a
corporate function or at a host’s home. The company expected its activity in December to be 11
jobs and 98 meals, but the actual activity was 14 jobs and 102 meals. The actual cost for catering
supplies in December was $4,500. The spending variance for catering supplies in December
would be closest to:
A) $110 F
B) $110 U
C) $500 F
D) $500 U
164) Bluemel 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 $43,670 per
month plus $2,879 per flight plus $10 per passenger. The company expected its activity in
December to be 85 flights and 281 passengers, but the actual activity was 90 flights and 278
passengers. The actual cost for plane operating costs in December was $314,740. The plane
operating costs in the flexible budget for December would be closest to:
A) $308,324
B) $314,740
C) $291,195
D) $305,560
165) Canniff 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 $56,910 per
month plus $2,632 per flight plus $5 per passenger. The company expected its activity in
February to be 66 flights and 268 passengers, but the actual activity was 65 flights and 269
passengers. The actual cost for plane operating costs in February was $228,090. The plane
operating costs in the planning budget for February would be closest to:
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A) $231,962
B) $230,722
C) $229,335
D) $228,090
166) Canniff 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 $56,560 per
month plus $2,618 per flight plus $5 per passenger. The company expected its activity in
February to be 63 flights and 254 passengers, but the actual activity was 62 flights and 255
passengers. The actual cost for plane operating costs in February was $218,820. The plane
operating costs in the planning budget for February would be closest to:
A) $222,764
B) $222,349
C) $220,151
D) $218,820
167) Knapper 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 January, the kennel budgeted for 2,700
tenant-days, but its actual level of activity was 2,740 tenant-days. The kennel has provided the
following data concerning the formulas to be used in its budgeting:
Fixed Element per Month Variable element per tenant-day
Revenue $ 0 $37.00
Wages and salaries $ 3,800 $ 6.10
Food and supplies 900 14.90
Facility expenses 9,700 4.80
Administrative expenses 6,600 0.10
Total expenses $21,000 $25.90
The food and supplies in the flexible budget for January would be closest to:
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A) $41,726
B) $42,243
C) $41,018
D) $41,130
168) Knapper 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 January, the kennel budgeted for 2,700
tenant-days, but its actual level of activity was 2,740 tenant-days. The kennel has provided the
following data concerning the formulas to be used in its budgeting:
Fixed Element per Month Variable element per tenant-day
Revenue $ 0 $37.00
Wages and salaries $ 3,800 $ 6.10
Food and supplies 900 14.90
Facility expenses 9,700 4.80
Administrative expenses 6,600 0.10
Total expenses $21,000 $25.90
The facility expenses in the flexible budget for January would be closest to:
A) $22,660
B) $21,996
C) $22,653
D) $22,852
169) Knapper 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 January, the kennel budgeted for 2,700
tenant-days, but its actual level of activity was 2,740 tenant-days. The kennel has provided the
following data concerning the formulas to be used in its budgeting:
Fixed Element per Month Variable element per tenant-day
Revenue $ 0 $37.00
Wages and salaries $ 3,800 $ 6.10
Food and supplies 900 14.90
Facility expenses 9,700 4.80
Administrative expenses 6,600 0.10
Total expenses $21,000 $25.90
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The net operating income in the flexible budget for January would be closest to:
A) $9,414
B) $8,350
C) $8,600
D) $8,970
170) Witten 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.
Fixed Element per Month Variable Element per Customer Served
Revenue $6,600
Employee salaries and wages $55,100 $1,000
Travel expenses $ 600
Other expenses $43,100
A total of 27 customers were actually served during January.
The revenue in the company’s flexible budget for January would have been closest to:
A) $178,200
B) $180,900
C) $147,400
D) $145,200
171) Witten 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.
Fixed Element per Month Variable Element per Customer Served
Revenue $6,600
Employee salaries and wages $55,100 $1,000
Travel expenses $ 600
Other expenses $43,100
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A total of 27 customers were actually served during January.
The “Employee salaries and wages” in the flexible budget for January would have been closest
to:
A) $77,100
B) $65,348
C) $80,200
D) $82,100
172) Witten 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.
Fixed Element per Month Variable Element per Customer Served
Revenue $6,600
Employee salaries and wages $55,100 $1,000
Travel expenses $ 600
Other expenses $43,100
A total of 27 customers were actually served during January.
The “Travel expenses” in the flexible budget for January would have been closest to:
A) $13,200
B) $16,200
C) $13,444
D) $16,500
173) Witten 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.
Fixed Element per Month Variable Element per Customer Served
Revenue $6,600
Employee salaries and wages $55,100 $1,000
Travel expenses $ 600
Other expenses $43,100
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A total of 27 customers were actually served during January.
The “Other expenses” in the flexible budget for January would have been closest to:
A) $42,900
B) $52,650
C) $43,100
D) $34,956
174) Witten 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.
Fixed Element per Month Variable Element per Customer Served
Revenue $6,600
Employee salaries and wages $55,100 $1,000
Travel expenses $ 600
Other expenses $43,100
A total of 27 customers were actually served during January.
The total expenses in the flexible budget for January would have been closest to:
A) $113,748
B) $133,400
C) $141,400
D) $139,600
175) Kawamura 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
2,300 tenant-days, but its actual level of activity was 2,320 tenant-days. The kennel has provided
the following data concerning the formulas to be used in its budgeting:
Fixed Element per Month Variable element per tenant-day
Revenue $ 0 $37.70
Wages and salaries $ 3,000 $ 6.10
Food and supplies 800 13.40
Facility expenses 9,800 4.70
Administrative expenses 7,100 0.20
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Total expenses $20,700 $24.40
The wages and salaries in the planning budget for December would be closest to:
A) $17,787
B) $17,942
C) $17,152
D) $17,030
176) Kawamura 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
2,300 tenant-days, but its actual level of activity was 2,320 tenant-days. The kennel has provided
the following data concerning the formulas to be used in its budgeting:
Fixed Element per Month Variable element per tenant-day
Revenue $ 0 $37.70
Wages and salaries $ 3,000 $ 6.10
Food and supplies 800 13.40
Facility expenses 9,800 4.70
Administrative expenses 7,100 0.20
Total expenses $20,700 $24.40
The administrative expenses in the planning budget for December would be closest to:
A) $7,754
B) $7,560
C) $7,564
D) $7,687
177) Kawamura 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
2,300 tenant-days, but its actual level of activity was 2,320 tenant-days. The kennel has provided
the following data concerning the formulas to be used in its budgeting:
Fixed Element per Month Variable element per tenant-day
Revenue $ 0 $37.70
Wages and salaries $ 3,000 $ 6.10
Food and supplies 800 13.40
Facility expenses 9,800 4.70
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Administrative expenses 7,100 0.20
Total expenses $20,700 $24.40
The net operating income in the planning budget for December would be closest to:
A) $10,156
B) $9,890
C) $7,309
D) $7,184
178) Sunn 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 6,100 units, but its actual level of activity was 6,050 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 $ 0 $33.70
Direct labor $ 0 $ 5.90
Direct materials 0 10.90
Manufacturing overhead 48,400 1.20
Selling and administrative expenses 24,800 0.50
Total expenses $73,200 $18.50
The direct materials in the flexible budget for November would be closest to:
A) $65,945
B) $67,720
C) $66,614
D) $66,490
179) Sunn 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 6,100 units, but its actual level of activity was 6,050 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 $ 0 $33.70
Direct labor $ 0 $ 5.90
Direct materials 0 10.90
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Manufacturing overhead 48,400 1.20
Selling and administrative expenses 24,800 0.50
Total expenses $73,200 $18.50
The manufacturing overhead in the flexible budget for November would be closest to:
A) $55,511
B) $56,433
C) $55,720
D) $55,660
180) Sunn 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 6,100 units, but its actual level of activity was 6,050 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 $ 0 $33.70
Direct labor $ 0 $ 5.90
Direct materials 0 10.90
Manufacturing overhead 48,400 1.20
Selling and administrative expenses 24,800 0.50
Total expenses $73,200 $18.50
The net operating income in the flexible budget for November would be closest to:
A) $16,494
B) $19,520
C) $18,760
D) $16,767
181) Tomlison Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During October, the company
budgeted for 5,100 units, but its actual level of activity was 5,150 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 $ 0 $42.40
Direct labor $ 0 $ 7.70
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Direct materials 0 15.40
Manufacturing overhead 46,800 1.20
Selling and administrative expenses 21,000 0.40
Total expenses $67,800 $24.70
The selling and administrative expenses in the planning budget for October would be closest to:
A) $23,330
B) $23,103
C) $23,060
D) $23,040
182) Tomlison Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During October, the company
budgeted for 5,100 units, but its actual level of activity was 5,150 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 $ 0 $42.40
Direct labor $ 0 $ 7.70
Direct materials 0 15.40
Manufacturing overhead 46,800 1.20
Selling and administrative expenses 21,000 0.40
Total expenses $67,800 $24.70
The net operating income in the planning budget for October would be closest to:
A) $22,470
B) $23,355
C) $28,108
D) $27,565
183) Tomlison Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During October, the company
budgeted for 5,100 units, but its actual level of activity was 5,150 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 $ 0 $42.40
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Direct labor $ 0 $ 7.70
Direct materials 0 15.40
Manufacturing overhead 46,800 1.20
Selling and administrative expenses 21,000 0.40
Total expenses $67,800 $24.70
The direct materials in the flexible budget for October would be closest to:
A) $79,310
B) $78,540
C) $79,239
D) $77,708
184) Hubbard 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 January, the kennel budgeted for 2,100
tenant-days, but its actual level of activity was 2,060 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for January:
Data used in budgeting:
Fixed Element per Month Variable element per tenant-day
Revenue $ 0 $31.10
Wages and salaries $ 2,300 $ 7.20
Food and supplies 1,000 8.10
Facility expenses 9,500 2.70
Administrative expenses 7,000 0.30
Total expenses $19,800 $18.30
Actual results for January:
Revenue $63,606
Wages and salaries $17,282
Food and supplies $18,346
Facility expenses $14,432
Administrative expenses $ 7,408
The wages and salaries in the planning budget for January would be closest to:
A) $17,282
B) $17,618
C) $17,420
D) $17,132
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185) Hubbard 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 January, the kennel budgeted for 2,100
tenant-days, but its actual level of activity was 2,060 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for January:
Data used in budgeting:
Fixed Element per Month Variable element per tenant-day
Revenue $ 0 $31.10
Wages and salaries $ 2,300 $ 7.20
Food and supplies 1,000 8.10
Facility expenses 9,500 2.70
Administrative expenses 7,000 0.30
Total expenses $19,800 $18.30
Actual results for January:
Revenue $63,606
Wages and salaries $17,282
Food and supplies $18,346
Facility expenses $14,432
Administrative expenses $ 7,408
The facility expenses in the flexible budget for January would be closest to:
A) $14,157
B) $14,712
C) $15,170
D) $15,062
186) Hubbard 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 January, the kennel budgeted for 2,100
tenant-days, but its actual level of activity was 2,060 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for January:
Data used in budgeting:
Fixed Element per Month Variable element per tenant-day
Revenue $ 0 $31.10
Wages and salaries $ 2,300 $ 7.20
Food and supplies 1,000 8.10
Facility expenses 9,500 2.70
Administrative expenses 7,000 0.30
Total expenses $19,800 $18.30
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Actual results for January:
Revenue $63,606
Wages and salaries $17,282
Food and supplies $18,346
Facility expenses $14,432
Administrative expenses $ 7,408
The net operating income in the flexible budget for January would be closest to:
A) $6,568
B) $6,021
C) $6,257
D) $7,080
187) Virgen 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 May, the kennel budgeted for 3,700 tenant-
days, but its actual level of activity was 3,690 tenant-days. The kennel 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 tenant-day
Revenue $ 0 $26.40
Wages and salaries $ 2,500 $ 6.10
Food and supplies 1,300 9.70
Facility expenses 8,600 2.60
Administrative expenses 6,800 0.40
Total expenses $19,200 $18.80
Actual results for May:
Revenue $92,626
Wages and salaries $23,919
Food and supplies $37,833
Facility expenses $18,594
Administrative expenses $ 8,386
The wages and salaries in the planning budget for May would be closest to:
A) $25,070
B) $25,009
C) $23,919
D) $23,984
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188) Virgen 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 May, the kennel budgeted for 3,700 tenant-
days, but its actual level of activity was 3,690 tenant-days. The kennel 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 tenant-day
Revenue $ 0 $26.40
Wages and salaries $ 2,500 $ 6.10
Food and supplies 1,300 9.70
Facility expenses 8,600 2.60
Administrative expenses 6,800 0.40
Total expenses $19,200 $18.80
Actual results for May:
Revenue $92,626
Wages and salaries $23,919
Food and supplies $37,833
Facility expenses $18,594
Administrative expenses $ 8,386
The administrative expenses in the planning budget for May would be closest to:
A) $8,409
B) $8,386
C) $8,280
D) $8,276
189) Virgen 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 May, the kennel budgeted for 3,700 tenant-
days, but its actual level of activity was 3,690 tenant-days. The kennel 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 tenant-day
Revenue $ 0 $26.40
Wages and salaries $ 2,500 $ 6.10
Food and supplies 1,300 9.70
Facility expenses 8,600 2.60
Administrative expenses 6,800 0.40
Total expenses $19,200 $18.80
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Actual results for May:
Revenue $92,626
Wages and salaries $23,919
Food and supplies $37,833
Facility expenses $18,594
Administrative expenses $ 8,386
The net operating income in the planning budget for May would be closest to:
A) $3,905
B) $3,883
C) $8,844
D) $8,920
190) Duprey Clinic uses client-visits as its measure of activity. During January, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,150 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for January:
Data used in budgeting:
Fixed Element per Month Variable element per client-visit
Revenue $ 0 $58.40
Personnel expenses $33,500 $18.00
Medical supplies 1,000 9.90
Occupancy expenses 9,300 2.20
Administrative expenses 5,300 0.40
Total expenses $49,100 $30.50
Actual results for January:
Revenue $127,950
Personnel expenses $ 69,720
Medical supplies $ 23,125
Occupancy expenses $ 14,290
Administrative expenses $ 5,930
The personnel expenses in the planning budget for January would be closest to:
A) $73,100
B) $72,200
C) $69,720
D) $71,341
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191) Duprey Clinic uses client-visits as its measure of activity. During January, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,150 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for January:
Data used in budgeting:
Fixed Element per Month Variable element per client-visit
Revenue $ 0 $58.40
Personnel expenses $33,500 $18.00
Medical supplies 1,000 9.90
Occupancy expenses 9,300 2.20
Administrative expenses 5,300 0.40
Total expenses $49,100 $30.50
Actual results for January:
Revenue $127,950
Personnel expenses $ 69,720
Medical supplies $ 23,125
Occupancy expenses $ 14,290
Administrative expenses $ 5,930
The administrative expenses in the planning budget for January would be closest to:
A) $6,160
B) $6,068
C) $5,930
D) $6,180
192) Duprey Clinic uses client-visits as its measure of activity. During January, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,150 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for January:
Data used in budgeting:
Fixed Element per Month Variable element per client-visit
Revenue $ 0 $58.40
Personnel expenses $33,500 $18.00
Medical supplies 1,000 9.90
Occupancy expenses 9,300 2.20
Administrative expenses 5,300 0.40
Total expenses $49,100 $30.50
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Actual results for January:
Revenue $127,950
Personnel expenses $ 69,720
Medical supplies $ 23,125
Occupancy expenses $ 14,290
Administrative expenses $ 5,930
The net operating income in the planning budget for January would be closest to:
A) $15,231
B) $10,885
C) $14,547
D) $12,280
193) Chimilio Clinic uses client-visits as its measure of activity. During June, the clinic
budgeted for 3,400 client-visits, but its actual level of activity was 3,360 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for June:
Data used in budgeting:
Fixed Element per Month Variable element per client-visit
Revenue $ 0 $33.70
Personnel expenses $27,300 $10.70
Medical supplies 1,200 5.50
Occupancy expenses 9,000 1.50
Administrative expenses 4,100 0.30
Total expenses $41,600 $18.00
Actual results for January:
Revenue $112,062
Personnel expenses $ 64,602
Medical supplies $ 19,900
Occupancy expenses $ 13,640
Administrative expenses $ 5,068
The medical supplies in the flexible budget for June would be closest to:
A) $19,680
B) $19,666
C) $20,137
D) $19,900
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194) Chimilio Clinic uses client-visits as its measure of activity. During June, the clinic
budgeted for 3,400 client-visits, but its actual level of activity was 3,360 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for June:
Data used in budgeting:
Fixed Element per Month Variable element per client-visit
Revenue $ 0 $33.70
Personnel expenses $27,300 $10.70
Medical supplies 1,200 5.50
Occupancy expenses 9,000 1.50
Administrative expenses 4,100 0.30
Total expenses $41,600 $18.00
Actual results for January:
Revenue $112,062
Personnel expenses $ 64,602
Medical supplies $ 19,900
Occupancy expenses $ 13,640
Administrative expenses $ 5,068
The occupancy expenses in the flexible budget for June would be closest to:
A) $13,802
B) $14,100
C) $14,040
D) $13,480
195) Chimilio Clinic uses client-visits as its measure of activity. During June, the clinic
budgeted for 3,400 client-visits, but its actual level of activity was 3,360 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for June:
Data used in budgeting:
Fixed Element per Month Variable element per client-visit
Revenue $ 0 $33.70
Personnel expenses $27,300 $10.70
Medical supplies 1,200 5.50
Occupancy expenses 9,000 1.50
Administrative expenses 4,100 0.30
Total expenses $41,600 $18.00
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Actual results for January:
Revenue $112,062
Personnel expenses $ 64,602
Medical supplies $ 19,900
Occupancy expenses $ 13,640
Administrative expenses $ 5,068
The net operating income in the flexible budget for June would be closest to:
A) $8,957
B) $11,152
C) $11,780
D) $8,748
196) Spohn Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 3,400 client-visits, but its actual level of activity was 3,370 client-visits. The clinic
has provided the following data concerning the formulas to be used in its budgeting for February:
Fixed Element per Month Variable element per client-visit
Revenue $ 0 $28.10
Personnel expenses $26,100 $7.70
Medical supplies 900 5.10
Occupancy expenses 5,600 0.80
Administrative expenses 4,300 0.40
Total expenses $36,900 $14.00
The administrative expenses in the planning budget for February would be closest to:
A) $5,648
B) $5,418
C) $5,466
D) $5,660
197) Spohn Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 3,400 client-visits, but its actual level of activity was 3,370 client-visits. The clinic
has provided the following data concerning the formulas to be used in its budgeting for February:
Fixed Element per Month Variable element per client-visit
Revenue $ 0 $28.10
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Personnel expenses $26,100 $ 7.70
Medical supplies 900 5.10
Occupancy expenses 5,600 0.80
Administrative expenses 4,300 0.40
Total expenses $36,900 $14.00
The net operating income in the planning budget for February would be closest to:
A) $11,862
B) $11,653
C) $11,040
D) $10,617
198) Spohn Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 3,400 client-visits, but its actual level of activity was 3,370 client-visits. The clinic
has provided the following data concerning the formulas to be used in its budgeting for February:
Fixed Element per Month Variable element per client-visit
Revenue $ 0 $28.10
Personnel expenses $26,100 $ 7.70
Medical supplies 900 5.10
Occupancy expenses 5,600 0.80
Administrative expenses 4,300 0.40
Total expenses $36,900 $14.00
The medical supplies in the flexible budget for February would be closest to:
A) $17,512
B) $17,204
C) $18,087
D) $18,240
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199) Neubert Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During December, the company
budgeted for 5,300 units, but its actual level of activity was 5,340 units. The company 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 unit
Revenue $ 0 $30.00
Direct labor $ 0 $ 3.50
Direct materials 0 10.40
Manufacturing overhead 33,300 1.50
Selling and administrative expenses 25,000 0.50
Total expenses $58,300 $15.90
Actual results for December:
Revenue $156,340
Direct labor $ 17,980
Direct materials $ 56,566
Manufacturing overhead $ 41,040
Selling and administrative expenses $ 28,870
The direct labor in the planning budget for December would be closest to:
A) $18,550
B) $17,980
C) $18,690
D) $17,845
200) Neubert Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During December, the company
budgeted for 5,300 units, but its actual level of activity was 5,340 units. The company 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 unit
Revenue $ 0 $30.00
Direct labor $ 0 $3.50
Direct materials 0 10.40
Manufacturing overhead 33,300 1.50
Selling and administrative expenses 25,000 0.50
Total expenses $58,300 $15.90
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Actual results for December:
Revenue $156,340
Direct labor $ 17,980
Direct materials $ 56,566
Manufacturing overhead $ 41,040
Selling and administrative expenses $ 28,870
The manufacturing overhead in the flexible budget for December would be closest to:
A) $41,350
B) $40,733
C) $41,250
D) $41,310
201) Neubert Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During December, the company
budgeted for 5,300 units, but its actual level of activity was 5,340 units. The company 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 unit
Revenue $ 0 $30.00
Direct labor $ 0 $ 3.50
Direct materials 0 10.40
Manufacturing overhead 33,300 1.50
Selling and administrative expenses 25,000 0.50
Total expenses $58,300 $15.90
Actual results for December:
Revenue $156,340
Direct labor $ 17,980
Direct materials $ 56,566
Manufacturing overhead $ 41,040
Selling and administrative expenses $ 28,870
The net operating income in the flexible budget for December would be closest to:
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A) $16,430
B) $16,994
C) $11,795
D) $11,974
202) Kekiwi 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 6,900 units, but its actual level of activity was 6,910 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for January:
Data used in budgeting:
Fixed Element per Month Variable element per unit
Revenue $ 0 $39.30
Direct labor $ 0 $ 3.10
Direct materials 0 18.90
Manufacturing overhead 45,900 1.70
Selling and administrative expenses 27,000 0.30
Total expenses $72,900 $24.00
Actual results for January:
Revenue $281,473
Direct labor $ 20,591
Direct materials $134,889
Manufacturing overhead $ 57,087
Selling and administrative expenses $ 28,063
The direct materials in the flexible budget for January would be closest to:
A) $130,599
B) $134,694
C) $130,410
D) $135,084
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203) Kekiwi 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 6,900 units, but its actual level of activity was 6,910 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for January:
Data used in budgeting:
Fixed Element per Month Variable element per unit
Revenue $ 0 $39.30
Direct labor $ 0 $ 3.10
Direct materials 0 18.90
Manufacturing overhead 45,900 1.70
Selling and administrative expenses 27,000 0.30
Total expenses $72,900 $24.00
Actual results for January:
Revenue $281,473
Direct labor $ 20,591
Direct materials $134,889
Manufacturing overhead $ 57,087
Selling and administrative expenses $ 28,063
The manufacturing overhead in the flexible budget for January would be closest to:
A) $57,004
B) $57,647
C) $57,630
D) $57,170
204) Kekiwi 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 6,900 units, but its actual level of activity was 6,910 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for January:
Data used in budgeting:
Fixed Element per Month Variable element per unit
Revenue $ 0 $39.30
Direct labor $ 0 $ 3.10
Direct materials 0 18.90
Manufacturing overhead 45,900 1.70
Selling and administrative expenses 27,000 0.30
Total expenses $72,900 $24.00
Version 1 112
Actual results for January:
Revenue $281,473
Direct labor $ 20,591
Direct materials $134,889
Manufacturing overhead $ 57,087
Selling and administrative expenses $ 28,063
The net operating income in the flexible budget for January would be closest to:
A) $32,823
B) $40,902
C) $32,670
D) $40,784
205) Pickrel Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed Element per Month Variable Element per Well Serviced
Revenue $5,500
Employee salaries and wages $53,700 $1,300
Servicing materials $ 600
Other expenses $34,400
When the company prepared its planning budget at the beginning of November, it assumed that
27 wells would have been serviced. However, 31 wells were actually serviced during November.
The amount shown for revenue in the planning budget for November would have been closest
to:
A) $170,500
B) $148,500
C) $149,981
D) $172,200
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206) Pickrel Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed Element per Month Variable Element per Well Serviced
Revenue $5,500
Employee salaries and wages $53,700 $1,300
Servicing materials $ 600
Other expenses $34,400
When the company prepared its planning budget at the beginning of November, it assumed that
27 wells would have been serviced. However, 31 wells were actually serviced during November.
The amount shown for “Employee salaries and wages” in the planning budget for November
would have been closest to:
A) $88,800
B) $93,400
C) $94,000
D) $81,348
207) Pickrel Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed Element per Month Variable Element per Well Serviced
Revenue $5,500
Employee salaries and wages $53,700 $1,300
Servicing materials $ 600
Other expenses $34,400
When the company prepared its planning budget at the beginning of November, it assumed that
27 wells would have been serviced. However, 31 wells were actually serviced during November.
The amount shown for “Servicing materials” in the planning budget for November would have
been closest to:
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A) $19,000
B) $16,200
C) $16,548
D) $18,600
208) Pickrel Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed Element per Month Variable Element per Well Serviced
Revenue $5,500
Employee salaries and wages $53,700 $1,300
Servicing materials $ 600
Other expenses $34,400
When the company prepared its planning budget at the beginning of November, it assumed that
27 wells would have been serviced. However, 31 wells were actually serviced during November.
The amount shown for “Other expenses” in the planning budget for November would have
been closest to:
A) $34,100
B) $29,439
C) $33,800
D) $34,400
209) Pickrel Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed Element per Month Variable Element per Well Serviced
Revenue $5,500
Employee salaries and wages $53,700 $1,300
Servicing materials $ 600
Other expenses $34,400
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When the company prepared its planning budget at the beginning of November, it assumed that
27 wells would have been serviced. However, 31 wells were actually serviced during November.
The amount shown for total expenses in the planning budget for November would have been
closest to:
A) $127,335
B) $146,200
C) $147,000
D) $139,400
210) Pickrel Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed Element per Month Variable Element per Well Serviced
Revenue $5,500
Employee salaries and wages $53,700 $1,300
Servicing materials $ 600
Other expenses $34,400
When the company prepared its planning budget at the beginning of November, it assumed that
27 wells would have been serviced. However, 31 wells were actually serviced during November.
The amount shown for net operating income in the planning budget for November would have
been closest to:
A) $26,000
B) $9,100
C) $23,500
D) $22,645
211) Mandalay Hotel bases its budgets on guest-days. The hotel’s static budget for August
appears below:
Budgeted number of guest-days 4,300
Budgeted variable costs:
Supplies (@$9.60 per guest-day) $ 41,280
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Laundry (@$9.40 per guest-day) 40,420
Total variable cost 81,700
Budgeted fixed costs:
Wages and salaries 57,190
Occupancy costs 52,030
Total fixed cost 109,220
Total cost $190,920
The total variable cost at the activity level of 5,000 guest-days per month should be:
A) $127,000
B) $109,220
C) $95,000
D) $81,700
212) Mandalay Hotel bases its budgets on guest-days. The hotel’s static budget for August
appears below:
Budgeted number of guest-days 4,300
Budgeted variable costs:
Supplies (@$9.60 per guest-day) $ 41,280
Laundry (@$9.40 per guest-day) 40,420
Total variable cost 81,700
Budgeted fixed costs:
Wages and salaries 57,190
Occupancy costs 52,030
Total fixed cost 109,220
Total cost $190,920
The total fixed cost at the activity level of 5,500 guest-days per month should be:
A) $139,700
B) $190,920
C) $244,200
D) $109,220
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213) Mandalay Hotel bases its budgets on guest-days. The hotel’s static budget for August
appears below:
Budgeted number of guest-days 4,300
Budgeted variable costs:
Supplies (@$9.60 per guest-day) $ 41,280
Laundry (@$9.40 per guest-day) 40,420
Total variable cost 81,700
Budgeted fixed costs:
Wages and salaries 57,190
Occupancy costs 52,030
Total fixed cost 109,220
Total cost $190,920
The total cost at the activity level of 5,200 guest-days per month should be:
A) $208,020
B) $230,880
C) $209,940
D) $190,920
214) Benjamin 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.
Fixed Element per Month Variable Element per Container Refurbished
Revenue $5,400
Employee salaries and wages $58,300 $1,000
Refurbishing materials $ 700
Other expenses $31,200
When the company prepared its planning budget at the beginning of March, it assumed that 26
containers would have been refurbished. However, 23 containers were actually refurbished
during March.
The amount shown for revenue in the planning budget for March would have been closest to:
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A) $126,000
B) $140,400
C) $142,435
D) $124,200
215) Benjamin 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.
Fixed Element per Month Variable Element per Container Refurbished
Revenue $5,400
Employee salaries and wages $58,300 $1,000
Refurbishing materials $ 700
Other expenses $31,200
When the company prepared its planning budget at the beginning of March, it assumed that 26
containers would have been refurbished. However, 23 containers were actually refurbished
during March.
The amount shown for “Employee salaries and wages” in the planning budget for March would
have been closest to:
A) $84,300
B) $89,757
C) $79,400
D) $81,300
216) Benjamin 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.
Fixed Element per Month Variable Element per Container Refurbished
Revenue $5,400
Employee salaries and wages $58,300 $1,000
Refurbishing materials $ 700
Other expenses $31,200
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When the company prepared its planning budget at the beginning of March, it assumed that 26
containers would have been refurbished. However, 23 containers were actually refurbished
during March.
The amount shown for “Refurbishing materials” in the planning budget for March would have
been closest to:
A) $16,700
B) $18,200
C) $18,878
D) $16,100
217) Benjamin 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.
Fixed Element per Month Variable Element per Container Refurbished
Revenue $5,400
Employee salaries and wages $58,300 $1,000
Refurbishing materials $ 700
Other expenses $31,200
When the company prepared its planning budget at the beginning of March, it assumed that 26
containers would have been refurbished. However, 23 containers were actually refurbished
during March.
The amount shown for “Other expenses” in the planning budget for March would have been
closest to:
A) $30,600
B) $31,200
C) $34,591
D) $30,900
218) Benjamin 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.
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Fixed Element per Month Variable Element per Container Refurbished
Revenue $5,400
Employee salaries and wages $58,300 $1,000
Refurbishing materials $ 700
Other expenses $31,200
When the company prepared its planning budget at the beginning of March, it assumed that 26
containers would have been refurbished. However, 23 containers were actually refurbished
during March.
The amount shown for total expenses in the planning budget for March would have been
closest to:
A) $126,700
B) $143,226
C) $128,600
D) $133,700
219) Benjamin 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.
Fixed Element per Month Variable Element per Container Refurbished
Revenue $5,400
Employee salaries and wages $58,300 $1,000
Refurbishing materials $ 700
Other expenses $31,200
When the company prepared its planning budget at the beginning of March, it assumed that 26
containers would have been refurbished. However, 23 containers were actually refurbished
during March.
The amount shown for net operating income in the planning budget for March would have
been closest to:
A) ($700)
B) ($791)
C) $6,700
D) ($4,400)
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220) Prowse Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed Element per Month Variable Element per Well Serviced
Revenue $4,000
Employee salaries and wages $43,800 $1,000
Servicing materials $ 600
Other expenses $38,200
A total of 42 wells were actually serviced during October.
The revenue in the company’s flexible budget for October would have been closest to:
A) $148,000
B) $150,114
C) $168,000
D) $170,400
221) Prowse Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed Element per Month Variable Element per Well Serviced
Revenue $4,000
Employee salaries and wages $43,800 $1,000
Servicing materials $ 600
Other expenses $38,200
A total of 42 wells were actually serviced during October.
The “Employee salaries and wages” in the flexible budget for October would have been closest
to:
A) $85,800
B) $84,000
C) $74,000
D) $80,800
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222) Prowse Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed Element per Month Variable Element per Well Serviced
Revenue $4,000
Employee salaries and wages $43,800 $1,000
Servicing materials $ 600
Other expenses $38,200
A total of 42 wells were actually serviced during October.
The “Servicing materials” in the flexible budget for October would have been closest to:
A) $25,200
B) $24,900
C) $22,200
D) $21,936
223) Prowse Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed Element per Month Variable Element per Well Serviced
Revenue $4,000
Employee salaries and wages $43,800 $1,000
Servicing materials $ 600
Other expenses $38,200
A total of 42 wells were actually serviced during October.
The “Other expenses” in the flexible budget for October would have been closest to:
A) $34,093
B) $38,200
C) $43,930
D) $38,700
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224) Prowse Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed Element per Month Variable Element per Well Serviced
Revenue $4,000
Employee salaries and wages $43,800 $1,000
Servicing materials $ 600
Other expenses $38,200
A total of 42 wells were actually serviced during October.
The total expenses in the flexible budget for October would have been closest to:
A) $149,200
B) $141,200
C) $130,029
D) $147,600
225) Grohs 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 2,500
tenant-days, but its actual level of activity was 2,530 tenant-days. The kennel has provided the
following data concerning the formulas to be used in its budgeting:
Fixed Element per Month Variable element per tenant-day
Revenue $ 0 $33.00
Wages and salaries $ 3,800 $ 7.90
Food and supplies 1,000 11.60
Facility expenses 8,600 2.20
Administrative expenses 6,200 0.20
Total expenses $19,600 $21.90
The administrative expenses in the planning budget for December would be closest to:
A) $6,893
B) $6,700
C) $6,976
D) $6,706
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226) Grohs 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 2,500
tenant-days, but its actual level of activity was 2,530 tenant-days. The kennel has provided the
following data concerning the formulas to be used in its budgeting:
Fixed Element per Month Variable element per tenant-day
Revenue $ 0 $33.00
Wages and salaries $ 3,800 $ 7.90
Food and supplies 1,000 11.60
Facility expenses 8,600 2.20
Administrative expenses 6,200 0.20
Total expenses $19,600 $21.90
The net operating income in the planning budget for December would be closest to:
A) $8,150
B) $11,914
C) $8,483
D) $11,633
227) Grohs 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 2,500
tenant-days, but its actual level of activity was 2,530 tenant-days. The kennel has provided the
following data concerning the formulas to be used in its budgeting:
Fixed Element per Month Variable element per tenant-day
Revenue $ 0 $33.00
Wages and salaries $ 3,800 $ 7.90
Food and supplies 1,000 11.60
Facility expenses 8,600 2.20
Administrative expenses 6,200 0.20
Total expenses $19,600 $21.90
The food and supplies in the flexible budget for December would be closest to:
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A) $30,000
B) $30,348
C) $29,791
D) $30,510
228) Ibsen Clinic uses client-visits as its measure of activity. During December, the clinic
budgeted for 3,300 client-visits, but its actual level of activity was 3,340 client-visits. The clinic
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 client-visit
Revenue $ 0 $40.00
Personnel expenses $32,400 $13.40
Medical supplies 1,500 4.80
Occupancy expenses 9,100 2.10
Administrative expenses 6,700 0.40
Total expenses $49,700 $20.70
Actual results for December:
Revenue $134,170
Personnel expenses $ 80,776
Medical supplies $ 17,302
Occupancy expenses $ 15,754
Administrative expenses $ 8,296
The personnel expenses in the planning budget for December would be closest to:
A) $76,620
B) $77,156
C) $79,809
D) $80,776
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229) Ibsen Clinic uses client-visits as its measure of activity. During December, the clinic
budgeted for 3,300 client-visits, but its actual level of activity was 3,340 client-visits. The clinic
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 client-visit
Revenue $ 0 $40.00
Personnel expenses $32,400 $13.40
Medical supplies 1,500 4.80
Occupancy expenses 9,100 2.10
Administrative expenses 6,700 0.40
Total expenses $49,700 $20.70
Actual results for December:
Revenue $134,170
Personnel expenses $ 80,776
Medical supplies $ 17,302
Occupancy expenses $ 15,754
Administrative expenses $ 8,296
The occupancy expenses in the flexible budget for December would be closest to:
A) $15,565
B) $16,114
C) $15,945
D) $16,030
230) Ibsen Clinic uses client-visits as its measure of activity. During December, the clinic
budgeted for 3,300 client-visits, but its actual level of activity was 3,340 client-visits. The clinic
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 client-visit
Revenue $ 0 $40.00
Personnel expenses $32,400 $13.40
Medical supplies 1,500 4.80
Occupancy expenses 9,100 2.10
Administrative expenses 6,700 0.40
Total expenses $49,700 $20.70
Actual results for December:
Revenue $134,170
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Personnel expenses $ 80,776
Medical supplies $ 17,302
Occupancy expenses $ 15,754
Administrative expenses $ 8,296
The net operating income in the flexible budget for December would be closest to:
A) $13,990
B) $14,762
C) $11,898
D) $12,188
231) Tessmer 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 January, the kennel budgeted for 3,100
tenant-days, but its actual level of activity was 3,090 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for January:
Data used in budgeting:
Fixed Element per Month Variable element per tenant-day
Revenue $ 0 $33.60
Wages and salaries $ 3,500 $ 7.40
Food and supplies 500 10.50
Facility expenses 9,500 4.70
Administrative expenses 6,600 0.30
Total expenses $20,100 $22.90
Actual results for January:
Revenue $105,934
Wages and salaries $ 27,186
Food and supplies $ 32,485
Facility expenses $ 24,873
Administrative expenses $ 7,557
The food and supplies in the flexible budget for January would be closest to:
A) $32,945
B) $32,590
C) $32,380
D) $33,050
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232) Tessmer 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 January, the kennel budgeted for 3,100
tenant-days, but its actual level of activity was 3,090 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for January:
Data used in budgeting:
Fixed Element per Month Variable element per tenant-day
Revenue $ 0 $33.60
Wages and salaries $ 3,500 $ 7.40
Food and supplies 500 10.50
Facility expenses 9,500 4.70
Administrative expenses 6,600 0.30
Total expenses $20,100 $22.90
Actual results for January:
Revenue $105,934
Wages and salaries $ 27,186
Food and supplies $ 32,485
Facility expenses $ 24,873
Administrative expenses $ 7,557
The facility expenses in the flexible budget for January would be closest to:
A) $24,793
B) $24,023
C) $24,070
D) $24,953
233) Tessmer 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 January, the kennel budgeted for 3,100
tenant-days, but its actual level of activity was 3,090 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for January:
Data used in budgeting:
Fixed Element per Month Variable element per tenant-day
Revenue $ 0 $33.60
Wages and salaries $ 3,500 $ 7.40
Food and supplies 500 10.50
Facility expenses 9,500 4.70
Administrative expenses 6,600 0.30
Total expenses $20,100 $22.90
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Actual results for January:
Revenue $105,934
Wages and salaries $ 27,186
Food and supplies $ 32,485
Facility expenses $ 24,873
Administrative expenses $ 7,557
The net operating income in the flexible budget for January would be closest to:
A) $13,878
B) $13,788
C) $12,963
D) $13,070
234) Lawes Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During July, the company
budgeted for 5,000 units, but its actual level of activity was 5,050 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 $ 0 $34.70
Direct labor $ 0 $ 6.00
Direct materials 0 13.20
Manufacturing overhead 31,000 1.90
Selling and administrative expenses 20,300 0.10
Total expenses $51,300 $21.20
The direct labor in the planning budget for July would be closest to:
A) $30,574
B) $30,880
C) $30,300
D) $30,000
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235) Lawes Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During July, the company
budgeted for 5,000 units, but its actual level of activity was 5,050 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 $ 0 $34.70
Direct labor $ 0 $ 6.00
Direct materials 0 13.20
Manufacturing overhead 31,000 1.90
Selling and administrative expenses 20,300 0.10
Total expenses $51,300 $21.20
The selling and administrative expenses in the planning budget for July would be closest to:
A) $20,800
B) $20,805
C) $20,705
D) $20,500
236) Lawes Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During July, the company
budgeted for 5,000 units, but its actual level of activity was 5,050 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 $ 0 $34.70
Direct labor $ 0 $ 6.00
Direct materials 0 13.20
Manufacturing overhead 31,000 1.90
Selling and administrative expenses 20,300 0.10
Total expenses $51,300 $21.20
The net operating income in the planning budget for July would be closest to:
A) $23,668
B) $16,200
C) $16,875
D) $24,144
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237) Capelli Hospital bases its budgets on patient-visits. The hospital’s static budget for
August appears below:
Budgeted number of patient-visits 9,400
Budgeted variable costs:
Supplies (@$9.50 per patient-visit) $ 89,300
Laundry (@$9.20 per patient-visit) 86,480
Total variable cost 175,780
Budgeted fixed costs:
Wages and salaries 99,740
Occupancy costs 107,740
Total fixed cost 207,480
Total cost $383,260
The total variable cost at the activity level of 9,500 patient-visits per month should be:
A) $175,780
B) $209,810
C) $207,480
D) $177,650
238) Capelli Hospital bases its budgets on patient-visits. The hospital’s static budget for
August appears below:
Budgeted number of patient-visits 8,300
Budgeted variable costs:
Supplies (@$5.00 per patient-visit) $ 41,500
Laundry (@$7.30 per patient-visit) 60,590
Total variable cost 102,090
Budgeted fixed costs:
Wages and salaries 60,590
Occupancy costs 73,040
Total fixed cost 133,630
Total cost $235,720
The total variable cost at the activity level of 9,300 patient-visits per month should be:
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A) $114,390
B) $149,730
C) $102,090
D) $133,630
239) Capelli Hospital bases its budgets on patient-visits. The hospital’s static budget for
August appears below:
Budgeted number of patient-visits 8,300
Budgeted variable costs:
Supplies (@$5.00 per patient-visit) $ 41,500
Laundry (@$7.30 per patient-visit) 60,590
Total variable cost 102,090
Budgeted fixed costs:
Wages and salaries 60,590
Occupancy costs 73,040
Total fixed cost 133,630
Total cost $235,720
The total fixed cost at the activity level of 9,600 patient-visits per month should be:
A) $133,630
B) $154,560
C) $235,720
D) $272,640
240) Capelli Hospital bases its budgets on patient-visits. The hospital’s static budget for
August appears below:
Budgeted number of patient-visits 8,300
Budgeted variable costs:
Supplies (@$5.00 per patient-visit) $ 41,500
Laundry (@$7.30 per patient-visit) 60,590
Total variable cost 102,090
Budgeted fixed costs:
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Wages and salaries 60,590
Occupancy costs 73,040
Total fixed cost 133,630
Total cost $235,720
The total cost at the activity level of 9,400 patient-visits per month should be:
A) $235,720
B) $249,250
C) $266,960
D) $250,640
241) Hallet 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 5,800 units, but its actual level of activity was 5,830 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 $ 0 $32.30
Direct labor $ 0 $ 3.40
Direct materials 0 10.40
Manufacturing overhead 46,700 1.10
Selling and administrative expenses 26,200 0.80
Total expenses $72,900 $15.70
Actual results for May:
Revenue $191,229
Direct labor $ 19,872
Direct materials $ 60,622
Manufacturing overhead $ 50,523
Selling and administrative expenses $ 30,654
The direct labor in the planning budget for May would be closest to:
A) $19,720
B) $19,770
C) $19,872
D) $19,822
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242) Hallet 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 5,800 units, but its actual level of activity was 5,830 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 $ 0 $32.30
Direct labor $ 0 $ 3.40
Direct materials 0 10.40
Manufacturing overhead 46,700 1.10
Selling and administrative expenses 26,200 0.80
Total expenses $72,900 $15.70
Actual results for May:
Revenue $191,229
Direct labor $ 19,872
Direct materials $ 60,622
Manufacturing overhead $ 50,523
Selling and administrative expenses $ 30,654
The selling and administrative expenses in the planning budget for May would be closest to:
A) $30,840
B) $30,654
C) $30,864
D) $30,496
243) Hallet 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 5,800 units, but its actual level of activity was 5,830 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 $ 0 $32.30
Direct labor $ 0 $ 3.40
Direct materials 0 10.40
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Manufacturing overhead 46,700 1.10
Selling and administrative expenses 26,200 0.80
Total expenses $72,900 $15.70
Actual results for May:
Revenue $191,229
Direct labor $ 19,872
Direct materials $ 60,622
Manufacturing overhead $ 50,523
Selling and administrative expenses $ 30,654
The net operating income in the planning budget for May would be closest to:
A) $23,380
B) $23,878
C) $29,711
D) $29,406
244) Leven Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 3,000 client-visits, but its actual level of activity was 3,050 client-visits. The clinic
has provided the following data concerning the formulas to be used in its budgeting for
September:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 31.00
Personnel expenses $ 23,900 $ 10.70
Medical supplies 1,400 3.90
Occupancy expenses 5,700 1.10
Administrative expenses 5,100 0.10
Total expenses $ 36,100 $ 15.80
The personnel expenses in the planning budget for September would be closest to:
A) $56,535
B) $54,575
C) $55,485
D) $56,000
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245) Leven Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 3,000 client-visits, but its actual level of activity was 3,050 client-visits. The clinic
has provided the following data concerning the formulas to be used in its budgeting for
September:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 31.00
Personnel expenses $ 23,900 $ 10.70
Medical supplies 1,400 3.90
Occupancy expenses 5,700 1.10
Administrative expenses 5,100 0.10
Total expenses $ 36,100 $ 15.80
The administrative expenses in the planning budget for September would be closest to:
A) $5,400
B) $5,346
C) $5,405
D) $5,435
246) Leven Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 3,000 client-visits, but its actual level of activity was 3,050 client-visits. The clinic
has provided the following data concerning the formulas to be used in its budgeting for
September:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 31.00
Personnel expenses $ 23,900 $ 10.70
Medical supplies 1,400 3.90
Occupancy expenses 5,700 1.10
Administrative expenses 5,100 0.10
Total expenses $ 36,100 $ 15.80
The net operating income in the planning budget for September would be closest to:
A) $9,500
B) $7,259
C) $10,260
D) $7,503
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247) Leist Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,170 client-visits. The clinic
has provided the following data concerning the formulas to be used in its budgeting:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 50.80
Personnel expenses $ 26,600 $ 15.60
Medical supplies 1,400 9.40
Occupancy expenses 7,600 2.40
Administrative expenses 5,300 0.10
Total expenses $ 40,900 $ 27.50
The medical supplies in the flexible budget for September would be closest to:
A) $22,080
B) $21,798
C) $21,907
D) $21,313
248) Leist Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,170 client-visits. The clinic
has provided the following data concerning the formulas to be used in its budgeting:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 50.80
Personnel expenses $ 26,600 $ 15.60
Medical supplies 1,400 9.40
Occupancy expenses 7,600 2.40
Administrative expenses 5,300 0.10
Total expenses $ 40,900 $ 27.50
The occupancy expenses in the flexible budget for September would be closest to:
A) $13,215
B) $12,808
C) $13,583
D) $12,880
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249) Leist Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,170 client-visits. The clinic
has provided the following data concerning the formulas to be used in its budgeting:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 50.80
Personnel expenses $ 26,600 $ 15.60
Medical supplies 1,400 9.40
Occupancy expenses 7,600 2.40
Administrative expenses 5,300 0.10
Total expenses $ 40,900 $ 27.50
The net operating income in the flexible budget for September would be closest to:
A) $9,661
B) $5,367
C) $5,516
D) $10,360
250) Schoening 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 January.
Fixed Element per Month Variable Element per Container Refurbished
Actual Total for January
Revenue $ 4,100 $ 158,600
Employee salaries and wages $ 50,600 $ 1,100 $ 92,700
Refurbishing materials $ 700 $ 27,000
Other expenses $ 41,200 $ 40,800
When the company prepared its planning budget at the beginning of January, it assumed that 40
containers would have been refurbished. However, 38 containers were actually refurbished
during January.
The amount shown for revenue in the planning budget for January would have been closest to:
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A) $158,600
B) $166,947
C) $164,000
D) $155,800
251) Schoening 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 January.
Fixed Element per Month Variable Element per Container Refurbished
Actual Total for January
Revenue $ 4,100 $ 158,600
Employee salaries and wages $ 50,600 $ 1,100 $ 92,700
Refurbishing materials $ 700 $ 27,000
Other expenses $ 41,200 $ 40,800
When the company prepared its planning budget at the beginning of January, it assumed that 40
containers would have been refurbished. However, 38 containers were actually refurbished
during January.
The amount shown for “Employee salaries and wages” in the planning budget for January
would have been closest to:
A) $92,400
B) $94,600
C) $97,579
D) $92,700
252) Schoening 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 January.
Fixed Element per Month Variable Element per Container Refurbished
Actual Total for January
Revenue $ 4,100 $ 158,600
Employee salaries and wages $ 50,600 $ 1,100 $ 92,700
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Refurbishing materials $ 700 $ 27,000
Other expenses $ 41,200 $ 40,800
When the company prepared its planning budget at the beginning of January, it assumed that 40
containers would have been refurbished. However, 38 containers were actually refurbished
during January.
The total expenses in the flexible budget for January would have been closest to:
A) $160,500
B) $160,200
C) $163,800
D) $168,947
253) Schoening 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 January.
Fixed Element per Month Variable Element per Container Refurbished
Actual Total for January
Revenue $ 4,100 $ 158,600
Employee salaries and wages $ 50,600 $ 1,100 $ 92,700
Refurbishing materials $ 700 $ 27,000
Other expenses $ 41,200 $ 40,800
When the company prepared its planning budget at the beginning of January, it assumed that 40
containers would have been refurbished. However, 38 containers were actually refurbished
during January.
The activity variance for “Refurbishing materials” for January would have been closest to:
A) $1,400 U
B) $1,000 F
C) $1,000 U
D) $1,400 F
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254) Schoening 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 January.
Fixed Element per Month Variable Element per Container Refurbished
Actual Total for January
Revenue $ 4,100 $ 158,600
Employee salaries and wages $ 50,600 $ 1,100 $ 92,700
Refurbishing materials $ 700 $ 27,000
Other expenses $ 41,200 $ 40,800
When the company prepared its planning budget at the beginning of January, it assumed that 40
containers would have been refurbished. However, 38 containers were actually refurbished
during January.
The revenue variance in the Revenue and Spending Variances column of a report comparing
actual results to the flexible budget for January would have been closest to:
A) $5,400 U
B) $2,800 U
C) $5,400 F
D) $2,800 F
255) Dubberly Corporation’s cost formula for its manufacturing overhead is $30,600 per
month plus $64 per machine-hour. For the month of March, the company planned for activity of
7,900 machine-hours, but the actual level of activity was 7,880 machine-hours. The actual
manufacturing overhead for the month was $558,610.
The manufacturing overhead in the planning budget for March would be closest to:
A) $534,920
B) $558,610
C) $536,200
D) $560,028
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256) Dubberly Corporation’s cost formula for its manufacturing overhead is $30,600 per
month plus $64 per machine-hour. For the month of March, the company planned for activity of
7,900 machine-hours, but the actual level of activity was 7,880 machine-hours. The actual
manufacturing overhead for the month was $558,610.
The manufacturing overhead in the flexible budget for March would be closest to:
A) $558,610
B) $536,200
C) $534,843
D) $534,920
257) Dubberly Corporation’s cost formula for its manufacturing overhead is $31,300 per
month plus $52 per machine-hour. For the month of March, the company planned for activity of
8,040 machine-hours, but the actual level of activity was 7,950 machine-hours. The actual
manufacturing overhead for the month was $472,630.
The activity variance for manufacturing overhead in March would be closest to:
A) $23,250 U
B) $23,250 F
C) $4,680 F
D) $4,680 U
258) Dubberly Corporation’s cost formula for its manufacturing overhead is $30,600 per
month plus $64 per machine-hour. For the month of March, the company planned for activity of
7,900 machine-hours, but the actual level of activity was 7,880 machine-hours. The actual
manufacturing overhead for the month was $558,610.
The activity variance for manufacturing overhead in March would be closest to:
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A) $22,410 U
B) $22,410 F
C) $1,280 F
D) $1,280 U
259) Dubberly Corporation’s cost formula for its manufacturing overhead is $30,800 per
month plus $62 per machine-hour. For the month of March, the company planned for activity of
7,940 machine-hours, but the actual level of activity was 7,900 machine-hours. The actual
manufacturing overhead for the month was $545,730.
The spending variance for manufacturing overhead in March would be closest to:
A) $22,650 U
B) $22,650 F
C) $25,130 F
D) $25,130 U
260) Dubberly Corporation’s cost formula for its manufacturing overhead is $30,600 per
month plus $64 per machine-hour. For the month of March, the company planned for activity of
7,900 machine-hours, but the actual level of activity was 7,880 machine-hours. The actual
manufacturing overhead for the month was $558,610.
The spending variance for manufacturing overhead in March would be closest to:
A) $22,410 U
B) $22,410 F
C) $23,690 F
D) $23,690 U
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261) Pratte Boat Wash’s cost formula for its cleaning equipment and supplies is $2,460 per
month plus $49 per boat. For the month of April, the company planned for activity of 58 boats,
but the actual level of activity was 18 boats. The actual cleaning equipment and supplies for the
month was $3,470.
The cleaning equipment and supplies in the planning budget for April would be closest to:
A) $3,342
B) $5,302
C) $3,470
D) $11,181
262) Pratte Boat Wash’s cost formula for its cleaning equipment and supplies is $2,460 per
month plus $49 per boat. For the month of April, the company planned for activity of 58 boats,
but the actual level of activity was 18 boats. The actual cleaning equipment and supplies for the
month was $3,470.
The cleaning equipment and supplies in the flexible budget for April would be closest to:
A) $3,342
B) $5,302
C) $3,470
D) $1,645
263) Pratte Boat Wash’s cost formula for its cleaning equipment and supplies is $2,590 per
month plus $50 per boat. For the month of April, the company planned for activity of 55 boats,
but the actual level of activity was 14 boats. The actual cleaning equipment and supplies for the
month was $3,350.
The activity variance for cleaning equipment and supplies in April would be closest to:
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A) $2,050 F
B) $1,990 U
C) $1,990 F
D) $2,050 U
264) Pratte Boat Wash’s cost formula for its cleaning equipment and supplies is $2,460 per
month plus $49 per boat. For the month of April, the company planned for activity of 58 boats,
but the actual level of activity was 18 boats. The actual cleaning equipment and supplies for the
month was $3,470.
The activity variance for cleaning equipment and supplies in April would be closest to:
A) $1,960 F
B) $1,832 U
C) $1,832 F
D) $1,960 U
265) Pratte Boat Wash’s cost formula for its cleaning equipment and supplies is $2,550 per
month plus $46 per boat. For the month of April, the company planned for activity of 60 boats,
but the actual level of activity was 15 boats. The actual cleaning equipment and supplies for the
month was $3,370.
The spending variance for cleaning equipment and supplies in April would be closest to:
A) $1,940 U
B) $130 F
C) $130 U
D) $1,940 F
266) Pratte Boat Wash’s cost formula for its cleaning equipment and supplies is $2,460 per
month plus $49 per boat. For the month of April, the company planned for activity of 58 boats,
but the actual level of activity was 18 boats. The actual cleaning equipment and supplies for the
month was $3,470.
The spending variance for cleaning equipment and supplies in April would be closest to:
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A) $1,832 U
B) $128 F
C) $128 U
D) $1,832 F
267)
Stegemann 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 May.
Fixed Element per Month Variable Element per Container Refurbished
Actual Total for May
Revenue $ 5,300 $ 156,400
Employee salaries and wages $ 42,900 $ 1,300 $ 82,300
Refurbishing materials $ 500 $ 15,100
Other expenses $ 42,900 $ 41,900
When the company prepared its planning budget at the beginning of May, it assumed that 27
containers would have been refurbished. However, 29 containers were actually refurbished
during May.
The revenue in the company’s flexible budget for May would have been closest to:
A) $145,614
B) $153,700
C) $143,100
D) $156,400
268) Stegemann 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 May.
Fixed Element per Month Variable Element per Container Refurbished
Actual Total for May
Revenue $ 5,300 $ 156,400
Employee salaries and wages $ 42,900 $ 1,300 $ 82,300
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Refurbishing materials $ 500 $ 15,100
Other expenses $ 42,900 $ 41,900
When the company prepared its planning budget at the beginning of May, it assumed that 27
containers would have been refurbished. However, 29 containers were actually refurbished
during May.
The spending variance for “Employee salaries and wages” for May would have been closest to:
A) $1,700 U
B) $4,300 U
C) $1,700 F
D) $4,300 F
269) Stegemann 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 May.
Fixed Element per Month Variable Element per Container Refurbished
Actual Total for May
Revenue $ 5,300 $ 156,400
Employee salaries and wages $ 42,900 $ 1,300 $ 82,300
Refurbishing materials $ 500 $ 15,100
Other expenses $ 42,900 $ 41,900
When the company prepared its planning budget at the beginning of May, it assumed that 27
containers would have been refurbished. However, 29 containers were actually refurbished
during May.
The amount shown for “Other expenses” in the planning budget for May would have been
closest to:
A) $42,900
B) $42,400
C) $41,900
D) $39,010
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270) Stegemann 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 May.
Fixed Element per Month Variable Element per Container Refurbished
Actual Total for May
Revenue $ 5,300 $ 156,400
Employee salaries and wages $ 42,900 $ 1,300 $ 82,300
Refurbishing materials $ 500 $ 15,100
Other expenses $ 42,900 $ 41,900
When the company prepared its planning budget at the beginning of May, it assumed that 27
containers would have been refurbished. However, 29 containers were actually refurbished
during May.
The activity variance for total expenses for May would have been closest to:
A) $3,600 Favorable
B) $3,600 Unfavorable
C) $4,900 Unfavorable
D) $4,900 Favorable
271) Dure Corporation’s cost formula for its selling and administrative expense is $24,500 per
month plus $1 per unit. For the month of July, the company planned for activity of 7,200 units,
but the actual level of activity was 7,160 units. The actual selling and administrative expense for
the month was $31,460.
The selling and administrative expense in the planning budget for July would be closest to:
A) $31,460
B) $31,660
C) $31,700
D) $31,636
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272) Dure Corporation’s cost formula for its selling and administrative expense is $24,500 per
month plus $1 per unit. For the month of July, the company planned for activity of 7,200 units,
but the actual level of activity was 7,160 units. The actual selling and administrative expense for
the month was $31,460.
The selling and administrative expense in the flexible budget for July would be closest to:
A) $31,524
B) $31,460
C) $31,660
D) $31,700
273) Dure Corporation’s cost formula for its selling and administrative expense is $24,500 per
month plus $1 per unit. For the month of July, the company planned for activity of 7,200 units,
but the actual level of activity was 7,160 units. The actual selling and administrative expense for
the month was $31,460.
The activity variance for selling and administrative expense in July would be closest to:
A) $240 F
B) $40 F
C) $40 U
D) $240 U
274) Dure Corporation’s cost formula for its selling and administrative expense is $24,500 per
month plus $1 per unit. For the month of July, the company planned for activity of 7,200 units,
but the actual level of activity was 7,160 units. The actual selling and administrative expense for
the month was $31,460.
The spending variance for selling and administrative expense in July would be closest to:
A) $240 U
B) $200 U
C) $200 F
D) $240 F
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275) Ruozzo 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 July.
Fixed Element per Month Variable Element per Customer Served
Actual Total for July
Revenue $ 4,500 $ 100,000
Employee salaries and wages $ 43,100 $ 900 $ 63,300
Travel expenses $ 500 $ 11,500
Other expenses $ 36,900 $ 37,900
When the company prepared its planning budget at the beginning of July, it assumed that 27
customers would have been served. However, 22 customers were actually served during July.
The “Employee salaries and wages” in the flexible budget for July would have been closest to:
A) $67,400
B) $63,300
C) $77,686
D) $62,900
276) Ruozzo 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 July.
Fixed Element per Month Variable Element per Customer Served
Actual Total for July
Revenue $ 4,500 $ 100,000
Employee salaries and wages $ 43,100 $ 900 $ 63,300
Travel expenses $ 500 $ 11,500
Other expenses $ 36,900 $ 37,900
When the company prepared its planning budget at the beginning of July, it assumed that 27
customers would have been served. However, 22 customers were actually served during July.
The spending variance for “Travel expenses” for July would have been closest to:
A) $2,000 F
B) $2,000 U
C) $500 F
D) $500 U
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277) Ruozzo 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 July.
Fixed Element per Month Variable Element per Customer Served
Actual Total for July
Revenue $ 4,500 $ 100,000
Employee salaries and wages $ 43,100 $ 900 $ 63,300
Travel expenses $ 500 $ 11,500
Other expenses $ 36,900 $ 37,900
When the company prepared its planning budget at the beginning of July, it assumed that 27
customers would have been served. However, 22 customers were actually served during July.
The amount shown for net operating income in the planning budget for July would have been
closest to:
A) ($12,700)
B) ($15,586)
C) ($11,800)
D) $3,700
278) Ruozzo 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 July.
Fixed Element per Month Variable Element per Customer Served
Actual Total for July
Revenue $ 4,500 $ 100,000
Employee salaries and wages $ 43,100 $ 900 $ 63,300
Travel expenses $ 500 $ 11,500
Other expenses $ 36,900 $ 37,900
When the company prepared its planning budget at the beginning of July, it assumed that 27
customers would have been served. However, 22 customers were actually served during July.
The activity variance for net operating income for July would have been closest to:
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A) $16,400 F
B) $15,500 F
C) $15,500 U
D) $16,400 U
279) Milot Corporation is an oil well service company that measures its output by the number
of wells serviced. The company has provided the following fixed and variable cost estimates that
it uses for budgeting purposes and the actual results of operations for April.
Fixed Element per Month Variable Element per Well Serviced
Actual Total for April
Revenue $ 3,800 $ 112,900
Employee salaries and wages $ 41,400 $ 900 $ 69,500
Servicing materials $ 500 $ 15,100
Other expenses $ 29,600 $ 30,200
When the company prepared its planning budget at the beginning of April, it assumed that 32
wells would have been serviced. However, 29 wells were actually serviced during April.
The amount shown for revenue in the planning budget for April would have been closest to:
A) $110,200
B) $121,600
C) $112,900
D) $124,579
280) Milot Corporation is an oil well service company that measures its output by the number
of wells serviced. The company has provided the following fixed and variable cost estimates that
it uses for budgeting purposes and the actual results of operations for April.
Fixed Element per Month Variable Element per Well Serviced
Actual Total for April
Revenue $ 3,800 $ 112,900
Employee salaries and wages $ 41,400 $ 900 $ 69,500
Servicing materials $ 500 $ 15,100
Other expenses $ 29,600 $ 30,200
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When the company prepared its planning budget at the beginning of April, it assumed that 32
wells would have been serviced. However, 29 wells were actually serviced during April.
The “Servicing materials” in the flexible budget for April would have been closest to:
A) $16,000
B) $16,662
C) $14,500
D) $15,100
281) Milot Corporation is an oil well service company that measures its output by the number
of wells serviced. The company has provided the following fixed and variable cost estimates that
it uses for budgeting purposes and the actual results of operations for April.
Fixed Element per Month Variable Element per Well Serviced
Actual Total for April
Revenue $ 3,800 $ 112,900
Employee salaries and wages $ 41,400 $ 900 $ 69,500
Servicing materials $ 500 $ 15,100
Other expenses $ 29,600 $ 30,200
When the company prepared its planning budget at the beginning of April, it assumed that 32
wells would have been serviced. However, 29 wells were actually serviced during April.
The activity variance for total expenses for April would have been closest to:
A) $4,200 F
B) $1,000 F
C) $1,000 U
D) $4,200 U
282) Milot Corporation is an oil well service company that measures its output by the number
of wells serviced. The company has provided the following fixed and variable cost estimates that
it uses for budgeting purposes and the actual results of operations for April.
Fixed Element per Month Variable Element per Well Serviced
Actual Total for April
Revenue $ 3,800 $ 112,900
Employee salaries and wages $ 41,400 $ 900 $ 69,500
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Servicing materials $ 500 $ 15,100
Other expenses $ 29,600 $ 30,200
When the company prepared its planning budget at the beginning of April, it assumed that 32
wells would have been serviced. However, 29 wells were actually serviced during April.
The spending variance for “Other expenses” for April would have been closest to:
A) $600 F
B) $3,124 F
C) $3,124 U
D) $600 U
283) Courington Detailing’s cost formula for its materials and supplies is $1,850 per month
plus $4 per vehicle. For the month of August, the company planned for activity of 80 vehicles,
but the actual level of activity was 45 vehicles. The actual materials and supplies for the month
was $2,000.
The materials and supplies in the planning budget for August would be closest to:
A) $2,170
B) $2,030
C) $3,761
D) $2,000
284) Courington Detailing’s cost formula for its materials and supplies is $2,420 per month
plus $9 per vehicle. For the month of August, the company planned for activity of 63 vehicles,
but the actual level of activity was 33 vehicles. The actual materials and supplies for the month
was $2,840.
The materials and supplies in the planning budget for August would be closest to:
A) $5,422
B) $2,840
C) $2,987
D) $2,717
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285) Courington Detailing’s cost formula for its materials and supplies is $1,850 per month
plus $4 per vehicle. For the month of August, the company planned for activity of 80 vehicles,
but the actual level of activity was 45 vehicles. The actual materials and supplies for the month
was $2,000.
The materials and supplies in the flexible budget for August would be closest to:
A) $2,000
B) $1,165
C) $2,170
D) $2,030
286) Courington Detailing’s cost formula for its materials and supplies is $2,420 per month
plus $9 per vehicle. For the month of August, the company planned for activity of 63 vehicles,
but the actual level of activity was 33 vehicles. The actual materials and supplies for the month
was $2,840.
The materials and supplies in the flexible budget for August would be closest to:
A) $1,565
B) $2,717
C) $2,987
D) $2,840
287) Courington Detailing’s cost formula for its materials and supplies is $2,050 per month
plus $11 per vehicle. For the month of August, the company planned for activity of 85 vehicles,
but the actual level of activity was 45 vehicles. The actual materials and supplies for the month
was $2,880.
The activity variance for materials and supplies in August would be closest to:
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A) $440 U
B) $105 U
C) $105 F
D) $440 F
288) Courington Detailing’s cost formula for its materials and supplies is $2,420 per month
plus $9 per vehicle. For the month of August, the company planned for activity of 63 vehicles,
but the actual level of activity was 33 vehicles. The actual materials and supplies for the month
was $2,840.
The activity variance for materials and supplies in August would be closest to:
A) $270 U
B) $270 F
C) $147 U
D) $147 F
289) Courington Detailing’s cost formula for its materials and supplies is $2,030 per month
plus $8 per vehicle. For the month of August, the company planned for activity of 98 vehicles,
but the actual level of activity was 58 vehicles. The actual materials and supplies for the month
was $2,760.
The spending variance for materials and supplies in August would be closest to:
A) $266 F
B) $54 F
C) $266 U
D) $54 U
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290) Courington Detailing’s cost formula for its materials and supplies is $2,420 per month
plus $9 per vehicle. For the month of August, the company planned for activity of 63 vehicles,
but the actual level of activity was 33 vehicles. The actual materials and supplies for the month
was $2,840.
The spending variance for materials and supplies in August would be closest to:
A) $147 F
B) $123 F
C) $123 U
D) $147 U
291) Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic
budgeted for 3,500 client-visits, but its actual level of activity was 3,490 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for January:
Data used in budgeting:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 38.20
Personnel expenses $ 33,600 $ 11.00
Medical supplies 1,900 6.20
Occupancy expenses 10,200 1.90
Administrative expenses 6,600 0.30
Total expenses $ 52,300 $ 19.40
Actual results for January:
Revenue $ 127,218
Personnel expenses $ 71,860
Medical supplies $ 24,058
Occupancy expenses $ 17,371
Administrative expenses $ 7,547
The net operating income in the planning budget for January would be closest to:
A) $13,312
B) $13,500
C) $6,400
D) $6,364
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292) Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic
budgeted for 3,500 client-visits, but its actual level of activity was 3,490 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for January:
Data used in budgeting:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 38.20
Personnel expenses $ 33,600 $ 11.00
Medical supplies 1,900 6.20
Occupancy expenses 10,200 1.90
Administrative expenses 6,600 0.30
Total expenses $ 52,300 $ 19.40
Actual results for January:
Revenue $ 127,218
Personnel expenses $ 71,860
Medical supplies $ 24,058
Occupancy expenses $ 17,371
Administrative expenses $ 7,547
The net operating income in the flexible budget for January would be closest to:
A) $6,364
B) $13,500
C) $13,312
D) $6,400
293) Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic
budgeted for 4,800 client-visits, but its actual level of activity was 4,780 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for January:
Data used in budgeting:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 36.80
Personnel expenses $ 28,800 $ 12.80
Medical supplies 1,700 6.80
Occupancy expenses 10,700 1.00
Administrative expenses 7,800 0.40
Total expenses $ 49,000 $ 21.00
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Actual results for January:
Revenue $ 133,000
Personnel expenses $ 70,040
Medical supplies $ 21,016
Occupancy expenses $ 14,250
Administrative expenses $ 8,100
The activity variance for net operating income in January would be closest to:
A) $316 U
B) $316 F
C) $7,246 U
D) $7,246 F
294) Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic
budgeted for 3,500 client-visits, but its actual level of activity was 3,490 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for January:
Data used in budgeting:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 38.20
Personnel expenses $ 33,600 $ 11.00
Medical supplies 1,900 6.20
Occupancy expenses 10,200 1.90
Administrative expenses 6,600 0.30
Total expenses $ 52,300 $ 19.40
Actual results for January:
Revenue $ 127,218
Personnel expenses $ 71,860
Medical supplies $ 24,058
Occupancy expenses $ 17,371
Administrative expenses $ 7,547
The activity variance for net operating income in January would be closest to:
A) $188 F
B) $7,118 F
C) $188 U
D) $7,118 U
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295) Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic
budgeted for 5,300 client-visits, but its actual level of activity was 5,320 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for January:
Data used in budgeting:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 37.30
Personnel expenses $ 29,300 $ 13.30
Medical supplies 1,600 7.30
Occupancy expenses 10,300 1.00
Administrative expenses 6,800 0.40
Total expenses $ 48,000 $ 22.00
Actual results for January:
Revenue $ 150,300
Personnel expenses $ 70,090
Medical supplies $ 20,226
Occupancy expenses $ 14,100
Administrative expenses $ 7,580
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 January
would be closest to:
A) $4,908 U
B) $5,214 F
C) $4,908 F
D) $5,214 U
296) Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic
budgeted for 3,500 client-visits, but its actual level of activity was 3,490 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for January:
Data used in budgeting:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 38.20
Personnel expenses $ 33,600 $ 11.00
Medical supplies 1,900 6.20
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Occupancy expenses 10,200 1.90
Administrative expenses 6,600 0.30
Total expenses $ 52,300 $ 19.40
Actual results for January:
Revenue $ 127,218
Personnel expenses $ 71,860
Medical supplies $ 24,058
Occupancy expenses $ 17,371
Administrative expenses $ 7,547
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 January
would be closest to:
A) $7,118 U
B) $6,930 U
C) $6,930 F
D) $7,118 F
297) Tennies Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 3,300 client-visits, but its actual level of activity was 3,290 client-visits. The clinic
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 client-visit
Revenue $ 0 $ 35.40
Personnel expenses $ 29,500 $ 10.40
Medical supplies 1,200 5.80
Occupancy expenses 7,600 1.90
Administrative expenses 5,900 0.30
Total expenses $ 44,200 $ 18.40
Actual results for November:
Revenue $ 116,656
Personnel expenses $ 63,686
Medical supplies $ 21,072
Occupancy expenses $ 13,371
Administrative expenses $ 6,677
The administrative expenses in the planning budget for November would be closest to:
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A) $6,887
B) $6,677
C) $6,697
D) $6,890
298) Tennies Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 3,300 client-visits, but its actual level of activity was 3,290 client-visits. The clinic
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 client-visit
Revenue $ 0 $ 35.40
Personnel expenses $ 29,500 $ 10.40
Medical supplies 1,200 5.80
Occupancy expenses 7,600 1.90
Administrative expenses 5,900 0.30
Total expenses $ 44,200 $ 18.40
Actual results for November:
Revenue $ 116,656
Personnel expenses $ 63,686
Medical supplies $ 21,072
Occupancy expenses $ 13,371
Administrative expenses $ 6,677
The medical supplies in the flexible budget for November would be closest to:
A) $20,340
B) $20,282
C) $21,008
D) $21,136
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299) Tennies Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 4,100 client-visits, but its actual level of activity was 4,090 client-visits. The clinic
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 client-visit
Revenue $ 0 $ 37.00
Personnel expenses $ 31,100 $ 12.00
Medical supplies 2,000 7.40
Occupancy expenses 9,200 3.50
Administrative expenses 7,500 0.40
Total expenses $ 49,800 $ 23.30
Actual results for November:
Revenue $ 151,535
Personnel expenses $ 80,140
Medical supplies $ 33,104
Occupancy expenses $ 23,019
Administrative expenses $ 8,895
The activity variance for personnel expenses in November would be closest to:
A) $120 F
B) $120 U
C) $160 F
D) $160 U
300) Tennies Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 3,300 client-visits, but its actual level of activity was 3,290 client-visits. The clinic
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 client-visit
Revenue $ 0 $ 35.40
Personnel expenses $ 29,500 $ 10.40
Medical supplies 1,200 5.80
Occupancy expenses 7,600 1.90
Administrative expenses 5,900 0.30
Total expenses $ 44,200 $ 18.40
Actual results for November:
Revenue $ 116,656
Version 1 164
Personnel expenses $ 63,686
Medical supplies $ 21,072
Occupancy expenses $ 13,371
Administrative expenses $ 6,677
The activity variance for personnel expenses in November would be closest to:
A) $104 F
B) $104 U
C) $134 F
D) $134 U
301) Tennies Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 3,450 client-visits, but its actual level of activity was 3,440 client-visits. The clinic
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 client-visit
Revenue $ 0 $ 35.70
Personnel expenses $ 29,800 $ 10.70
Medical supplies 1,350 6.10
Occupancy expenses 7,900 2.20
Administrative expenses 6,200 0.30
Total expenses $ 45,250 $ 19.30
Actual results for November:
Revenue $ 122,980
Personnel expenses $ 66,581
Medical supplies $ 23,133
Occupancy expenses $ 14,985
Administrative expenses $ 7,016
The spending variance for medical supplies in November would be closest to:
A) $799 F
B) $799 U
C) $738 U
D) $738 F
Version 1 165
302) Tennies Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 3,300 client-visits, but its actual level of activity was 3,290 client-visits. The clinic
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 client-visit
Revenue $ 0 $ 35.40
Personnel expenses $ 29,500 $ 10.40
Medical supplies 1,200 5.80
Occupancy expenses 7,600 1.90
Administrative expenses 5,900 0.30
Total expenses $ 44,200 $ 18.40
Actual results for November:
Revenue $ 116,656
Personnel expenses $ 63,686
Medical supplies $ 21,072
Occupancy expenses $ 13,371
Administrative expenses $ 6,677
The spending variance for medical supplies in November would be closest to:
A) $790 F
B) $790 U
C) $732 U
D) $732 F
303) Rhed 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 3,700
tenant-days, but its actual level of activity was 3,650 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 $ 0 $ 33.90
Wages and salaries $ 2,200 $ 7.70
Food and supplies 1,400 12.90
Facility expenses 8,200 4.40
Administrative expenses 6,200 0.40
Total expenses $ 18,000 $ 25.40
Version 1 166
Actual results for December:
Revenue $ 122,235
Wages and salaries $ 30,575
Food and supplies $ 47,455
Facility expenses $ 24,360
Administrative expenses $ 7,460
The wages and salaries in the planning budget for December would be closest to:
A) $30,575
B) $30,994
C) $30,305
D) $30,690
304) Rhed 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 3,700
tenant-days, but its actual level of activity was 3,650 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 $ 0 $ 33.90
Wages and salaries $ 2,200 $ 7.70
Food and supplies 1,400 12.90
Facility expenses 8,200 4.40
Administrative expenses 6,200 0.40
Total expenses $ 18,000 $ 25.40
Actual results for December:
Revenue $ 122,235
Wages and salaries $ 30,575
Food and supplies $ 47,455
Facility expenses $ 24,360
Administrative expenses $ 7,460
The facility expenses in the flexible budget for December would be closest to:
A) $24,694
B) $24,031
C) $24,260
D) $24,480
Version 1 167
305) Rhed 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 3,750
tenant-days, but its actual level of activity was 3,700 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 $ 0 $ 34.00
Wages and salaries $ 2,300 $ 7.80
Food and supplies 1,450 13.00
Facility expenses 8,300 4.50
Administrative expenses 6,300 0.30
Total expenses $ 18,350 $ 25.60
Actual results for December:
Revenue $ 125,290
Wages and salaries $ 31,440
Food and supplies $ 48,515
Facility expenses $ 25,055
Administrative expenses $ 7,575
The activity variance for administrative expenses in December would be closest to:
A) $15 U
B) $150 U
C) $15 F
D) $150 F
306) Rhed 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 3,700
tenant-days, but its actual level of activity was 3,650 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 $ 0 $ 33.90
Wages and salaries $ 2,200 $ 7.70
Food and supplies 1,400 12.90
Facility expenses 8,200 4.40
Administrative expenses 6,200 0.40
Version 1 168
Total expenses $ 18,000 $ 25.40
Actual results for December:
Revenue $ 122,235
Wages and salaries $ 30,575
Food and supplies $ 47,455
Facility expenses $ 24,360
Administrative expenses $ 7,460
The activity variance for administrative expenses in December would be closest to:
A) $20 U
B) $220 U
C) $20 F
D) $220 F
307) Rhed 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 3,700
tenant-days, but its actual level of activity was 3,650 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 $ 0 $ 33.90
Wages and salaries $ 2,200 $ 7.70
Food and supplies 1,400 12.90
Facility expenses 8,200 4.40
Administrative expenses 6,200 0.40
Total expenses $ 18,000 $ 25.40
Actual results for December:
Revenue $ 122,235
Wages and salaries $ 30,575
Food and supplies $ 47,455
Facility expenses $ 24,360
Administrative expenses $ 7,460
The spending variance for facility expenses in December would be closest to:
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A) $120 U
B) $100 F
C) $120 F
D) $100 U
308) Harold Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During March, the company
budgeted for 7,900 units, but its actual level of activity was 7,860 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for March:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 39.80
Direct labor $ 0 $ 7.70
Direct materials 0 18.00
Manufacturing overhead 38,200 1.50
Selling and administrative expenses 27,400 0.50
Total expenses $ 65,600 $ 27.70
Actual results for March:
Revenue $ 297,318
Direct labor $ 59,962
Direct materials $ 135,850
Manufacturing overhead $ 51,370
Selling and administrative expenses $ 31,950
The selling and administrative expenses in the planning budget for March would be closest to:
A) $31,330
B) $31,350
C) $31,950
D) $32,113
Version 1 170
309) Harold Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During March, the company
budgeted for 7,900 units, but its actual level of activity was 7,860 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for March:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 39.80
Direct labor $ 0 $ 7.70
Direct materials 0 18.00
Manufacturing overhead 38,200 1.50
Selling and administrative expenses 27,400 0.50
Total expenses $ 65,600 $ 27.70
Actual results for March:
Revenue $ 297,318
Direct labor $ 59,962
Direct materials $ 135,850
Manufacturing overhead $ 51,370
Selling and administrative expenses $ 31,950
The manufacturing overhead in the flexible budget for March would be closest to:
A) $51,110
B) $51,631
C) $49,990
D) $50,050
310) Harold Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During March, the company
budgeted for 7,900 units, but its actual level of activity was 7,860 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for March:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 39.80
Direct labor 0 7.70
Direct materials 0 18.00
Manufacturing overhead 38,200 1.50
Selling and administrative expenses 27,400 0.50
Total expenses $ 65,600 $ 27.70
Version 1 171
Actual results for March:
Revenue $ 297,318
Direct labor $ 59,962
Direct materials $ 135,850
Manufacturing overhead $ 51,370
Selling and administrative expenses $ 31,950
The activity variance for selling and administrative expenses in March would be closest to:
A) $600 F
B) $20 U
C) $600 U
D) $20 F
311) Harold Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During March, the company
budgeted for 7,900 units, but its actual level of activity was 7,860 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for March:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 39.80
Direct labor $ 0 $ 7.70
Direct materials 0 18.00
Manufacturing overhead 38,200 1.50
Selling and administrative expenses 27,400 0.50
Total expenses $ 65,600 $ 27.70
Actual results for March:
Revenue $ 297,318
Direct labor $ 59,962
Direct materials $ 135,850
Manufacturing overhead $ 51,370
Selling and administrative expenses $ 31,950
The spending variance for direct materials in March would be closest to:
Version 1 172
A) $5,630 F
B) $6,350 F
C) $5,630 U
D) $6,350 U
312) Piechocki 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 7,000 units, but its actual level of activity was 6,950 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 $ 0 $ 34.50
Direct labor $ 0 $ 6.50
Direct materials 0 14.10
Manufacturing overhead 40,000 2.00
Selling and administrative expenses 25,800 0.50
Total expenses $ 65,800 $ 23.10
Actual results for May:
Revenue $ 241,350
Direct labor $ 45,210
Direct materials $ 99,030
Manufacturing overhead $ 45,000
Selling and administrative expenses $ 30,500
The direct labor in the planning budget for May would be closest to:
A) $45,470
B) $45,210
C) $45,175
D) $45,500
Version 1 173
313) Piechocki 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 5,900 units, but its actual level of activity was 5,940 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 $ 0 $ 32.60
Direct labor $ 0 $ 3.90
Direct materials 0 12.10
Manufacturing overhead 33,400 1.80
Selling and administrative expenses 28,300 0.40
Total expenses $ 61,700 $ 18.20
Actual results for May:
Revenue $ 200,564
Direct labor $ 22,786
Direct materials $ 73,824
Manufacturing overhead $ 43,922
Selling and administrative expenses $ 31,896
The direct labor in the planning budget for May would be closest to:
A) $22,786
B) $23,010
C) $22,633
D) $23,166
314) Piechocki 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 6,300 units, but its actual level of activity was 6,250 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 $ 0 $ 33.80
Direct labor $ 0 $ 5.80
Direct materials 0 13.40
Version 1 174
Manufacturing overhead 33,000 1.30
Selling and administrative expenses 25,100 0.50
Total expenses $ 58,100 $ 21.00
Actual results for May:
Revenue $ 212,300
Direct labor $ 35,730
Direct materials $ 85,600
Manufacturing overhead $ 41,500
Selling and administrative expenses $ 30,430
The direct materials in the flexible budget for May would be closest to:
A) $83,750
B) $86,330
C) $84,420
D) $85,035
315) Piechocki 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 5,900 units, but its actual level of activity was 5,940 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 $ 0 $ 32.60
Direct labor $ 0 $ 3.90
Direct materials 0 12.10
Manufacturing overhead 33,400 1.80
Selling and administrative expenses 28,300 0.40
Total expenses $ 61,700 $ 18.20
Actual results for May:
Revenue $ 200,564
Direct labor $ 22,786
Direct materials $ 73,824
Manufacturing overhead $ 43,922
Selling and administrative expenses $ 31,896
The direct materials in the flexible budget for May would be closest to:
Version 1 175
A) $73,327
B) $71,874
C) $71,390
D) $74,325
316) Piechocki 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 7,700 units, but its actual level of activity was 7,650 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 $ 0 $ 35.20
Direct labor $ 0 $ 5.80
Direct materials 0 12.80
Manufacturing overhead 34,000 1.50
Selling and administrative expenses 26,500 0.50
Total expenses $ 60,500 $ 20.60
Actual results for May:
Revenue $ 270,800
Direct labor $ 44,210
Direct materials $ 99,995
Manufacturing overhead $ 48,500
Selling and administrative expenses $ 30,570
The activity variance for direct labor in May would be closest to:
A) $450 U
B) $290 U
C) $450 F
D) $290 F
Version 1 176
317) Piechocki 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 5,900 units, but its actual level of activity was 5,940 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 $ 0 $ 32.60
Direct labor $ 0 $ 3.90
Direct materials 0 12.10
Manufacturing overhead 33,400 1.80
Selling and administrative expenses 28,300 0.40
Total expenses $ 61,700 $ 18.20
Actual results for May:
Revenue $ 200,564
Direct labor $ 22,786
Direct materials $ 73,824
Manufacturing overhead $ 43,922
Selling and administrative expenses $ 31,896
The activity variance for direct labor in May would be closest to:
A) $156 U
B) $156 F
C) $224 F
D) $224 U
318) Piechocki 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 6,500 units, but its actual level of activity was 6,450 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 $ 0 $ 34.00
Direct labor $ 0 $ 6.00
Direct materials 0 13.60
Manufacturing overhead 35,000 1.50
Selling and administrative expenses 25,300 0.70
Version 1 177
Total expenses $ 60,300 $ 21.80
Actual results for May:
Revenue $ 220,100
Direct labor $ 38,580
Direct materials $ 88,900
Manufacturing overhead $ 42,500
Selling and administrative expenses $ 30,450
The revenue variance for May would be closest to:
A) $900 F
B) $800 F
C) $800 U
D) $900 U
319) Piechocki 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 5,900 units, but its actual level of activity was 5,940 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 $ 0 $ 32.60
Direct labor $ 0 $ 3.90
Direct materials 0 12.10
Manufacturing overhead 33,400 1.80
Selling and administrative expenses 28,300 0.40
Total expenses $ 61,700 $ 18.20
Actual results for May:
Revenue $ 200,564
Direct labor $ 22,786
Direct materials $ 73,824
Manufacturing overhead $ 43,922
Selling and administrative expenses $ 31,896
The revenue variance for May would be closest to:
Version 1 178
A) $6,920 F
B) $6,920 U
C) $8,224 U
D) $8,224 F
320) Piechocki 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 7,400 units, but its actual level of activity was 7,350 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 $ 0 $ 34.90
Direct labor $ 0 $ 5.50
Direct materials 0 13.40
Manufacturing overhead 31,000 2.40
Selling and administrative expenses 26,200 0.20
Total expenses $ 57,200 $ 21.50
Actual results for May:
Revenue $ 257,800
Direct labor $ 39,870
Direct materials $ 99,890
Manufacturing overhead $ 47,000
Selling and administrative expenses $ 30,540
The spending variance for direct materials in May would be closest to:
A) $730 F
B) $1,400 U
C) $1,400 F
D) $730 U
Version 1 179
321) Piechocki 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 5,900 units, but its actual level of activity was 5,940 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 $ 0 $ 32.60
Direct labor $ 0 $ 3.90
Direct materials 0 12.10
Manufacturing overhead 33,400 1.80
Selling and administrative expenses 28,300 0.40
Total expenses $ 61,700 $ 18.20
Actual results for May:
Revenue $ 200,564
Direct labor $ 22,786
Direct materials $ 73,824
Manufacturing overhead $ 43,922
Selling and administrative expenses $ 31,896
The spending variance for direct materials in May would be closest to:
A) $2,434 U
B) $1,950 U
C) $2,434 F
D) $1,950 F
322) Malander 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 November, the kennel budgeted for
3,400 tenant-days, but its actual level of activity was 3,390 tenant-days. The kennel 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 tenant-day
Revenue $ 0 $ 28.00
Wages and salaries $ 2,700 $ 5.40
Food and supplies 500 10.20
Facility expenses 9,600 3.30
Administrative expenses 6,600 0.20
Total expenses $ 19,400 $ 19.10
Version 1 180
Actual results for November:
Revenue $ 90,470
Wages and salaries $ 20,606
Food and supplies $ 35,838
Facility expenses $ 20,857
Administrative expenses $ 7,518
The wages and salaries in the planning budget for November would be closest to:
A) $21,006
B) $20,667
C) $20,606
D) $21,060
323) Malander 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 November, the kennel budgeted for
3,400 tenant-days, but its actual level of activity was 3,390 tenant-days. The kennel 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 tenant-day
Revenue $ 0 $ 28.00
Wages and salaries $ 2,700 $ 5.40
Food and supplies 500 10.20
Facility expenses 9,600 3.30
Administrative expenses 6,600 0.20
Total expenses $ 19,400 $ 19.10
Actual results for November:
Revenue $ 90,470
Wages and salaries $ 20,606
Food and supplies $ 35,838
Facility expenses $ 20,857
Administrative expenses $ 7,518
The food and supplies in the flexible budget for November would be closest to:
Version 1 181
A) $35,180
B) $35,078
C) $35,944
D) $35,733
324) Malander 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 November, the kennel budgeted for
3,400 tenant-days, but its actual level of activity was 3,390 tenant-days. The kennel 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 tenant-day
Revenue $ 0 $ 28.00
Wages and salaries $ 2,700 $ 5.40
Food and supplies 500 10.20
Facility expenses 9,600 3.30
Administrative expenses 6,600 0.20
Total expenses $ 19,400 $ 19.10
Actual results for November:
Revenue $ 90,470
Wages and salaries $ 20,606
Food and supplies $ 35,838
Facility expenses $ 20,857
Administrative expenses $ 7,518
The activity variance for wages and salaries in November would be closest to:
A) $454 Favorable
B) $454 Unfavorable
C) $54 Favorable
D) $54 Unfavorable
Version 1 182
325) Malander 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 November, the kennel budgeted for
3,400 tenant-days, but its actual level of activity was 3,390 tenant-days. The kennel 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 tenant-day
Revenue $ 0 $ 28.00
Wages and salaries $ 2,700 $ 5.40
Food and supplies 500 10.20
Facility expenses 9,600 3.30
Administrative expenses 6,600 0.20
Total expenses $ 19,400 $ 19.10
Actual results for November:
Revenue $ 90,470
Wages and salaries $ 20,606
Food and supplies $ 35,838
Facility expenses $ 20,857
Administrative expenses $ 7,518
The revenue variance for November would be closest to:
A) $4,450 F
B) $4,730 U
C) $4,730 F
D) $4,450 U
326) Malander 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 November, the kennel budgeted for
3,400 tenant-days, but its actual level of activity was 3,390 tenant-days. The kennel 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 tenant-day
Revenue $ 0 $ 28.00
Wages and salaries $ 2,700 $ 5.40
Food and supplies 500 10.20
Facility expenses 9,600 3.30
Administrative expenses 6,600 0.20
Total expenses $ 19,400 $ 19.10
Version 1 183
Actual results for November:
Revenue $ 90,470
Wages and salaries $ 20,606
Food and supplies $ 35,838
Facility expenses $ 20,857
Administrative expenses $ 7,518
The spending variance for food and supplies in November would be closest to:
A) $658 F
B) $760 F
C) $658 U
D) $760 U
327) Gordin 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 May, the kennel budgeted for 3,000 tenant-
days, but its actual level of activity was 3,020 tenant-days. The kennel 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 tenant-day
Revenue $ 0 $ 27.60
Wages and salaries $ 2,000 $ 5.20
Food and supplies 800 10.20
Facility expenses 8,500 3.70
Administrative expenses 6,000 0.10
Total expenses $ 17,300 $ 19.20
Actual results for May:
Revenue $ 86,322
Wages and salaries $ 17,984
Food and supplies $ 32,444
Facility expenses $ 19,554
Administrative expenses $ 6,162
The administrative expenses in the planning budget for May would be closest to:
A) $6,300
B) $6,302
C) $6,121
D) $6,162
Version 1 184
328) Gordin 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 May, the kennel budgeted for 3,000 tenant-
days, but its actual level of activity was 3,020 tenant-days. The kennel 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 tenant-day
Revenue $ 0 $ 27.60
Wages and salaries $ 2,000 $ 5.20
Food and supplies 800 10.20
Facility expenses 8,500 3.70
Administrative expenses 6,000 0.10
Total expenses $ 17,300 $ 19.20
Actual results for May:
Revenue $ 86,322
Wages and salaries $ 17,984
Food and supplies $ 32,444
Facility expenses $ 19,554
Administrative expenses $ 6,162
The facility expenses in the flexible budget for May would be closest to:
A) $19,425
B) $19,600
C) $19,674
D) $19,684
329) Gordin 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 May, the kennel budgeted for 3,000 tenant-
days, but its actual level of activity was 3,020 tenant-days. The kennel 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 tenant-day
Revenue $ 0 $ 27.60
Wages and salaries $ 2,000 $ 5.20
Food and supplies 800 10.20
Facility expenses 8,500 3.70
Administrative expenses 6,000 0.10
Total expenses $ 17,300 $ 19.20
Version 1 185
Actual results for May:
Revenue $ 86,322
Wages and salaries $ 17,984
Food and supplies $ 32,444
Facility expenses $ 19,554
Administrative expenses $ 6,162
The activity variance for administrative expenses in May would be closest to:
A) $2 F
B) $2 U
C) $138 U
D) $138 F
330) Gordin 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 May, the kennel budgeted for 3,000 tenant-
days, but its actual level of activity was 3,020 tenant-days. The kennel 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 tenant-day
Revenue $ 0 $ 27.60
Wages and salaries $ 2,000 $ 5.20
Food and supplies 800 10.20
Facility expenses 8,500 3.70
Administrative expenses 6,000 0.10
Total expenses $ 17,300 $ 19.20
Actual results for May:
Revenue $ 86,322
Wages and salaries $ 17,984
Food and supplies $ 32,444
Facility expenses $ 19,554
Administrative expenses $ 6,162
The spending variance for food and supplies in May would be closest to:
A) $840 U
B) $840 F
C) $1,044 F
D) $1,044 U
Version 1 186
331) Paulis 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 February, the kennel budgeted for 4,100 tenant-
days, but its actual level of activity was 4,080 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 30.60
Wages and salaries $ 3,100 $ 6.60
Food and supplies 500 11.40
Facility expenses 8,100 3.60
Administrative expenses 7,900 0.60
Total expenses $ 19,600 $ 22.20
Actual results for February:
Revenue $ 107,880
Wages and salaries $ 23,510
Food and supplies $ 36,791
Facility expenses $ 19,260
Administrative expenses $ 9,142
The net operating income in the planning budget for February would be closest to:
A) $14,840
B) $19,083
C) $14,672
D) $19,177
332) Paulis 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 February, the kennel budgeted for 2,500 tenant-
days, but its actual level of activity was 2,480 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 35.30
Wages and salaries $ 2,500 $ 5.90
Food and supplies 400 13.80
Facility expenses 8,900 3.40
Administrative expenses 7,800 0.40
Version 1 187
Total expenses $ 19,600 $ 23.50
Actual results for February:
Revenue $ 85,654
Wages and salaries $ 16,992
Food and supplies $ 33,084
Facility expenses $ 16,682
Administrative expenses $ 8,732
The net operating income in the planning budget for February would be closest to:
A) $9,664
B) $10,246
C) $10,083
D) $9,900
333) Paulis 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 February, the kennel budgeted for 4,600 tenant-
days, but its actual level of activity was 4,580 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 31.10
Wages and salaries $ 3,600 $ 7.10
Food and supplies 200 11.90
Facility expenses 8,600 4.10
Administrative expenses 8,400 0.50
Total expenses $ 20,800 $ 23.60
Actual results for February:
Revenue $ 108,380
Wages and salaries $ 23,560
Food and supplies $ 36,796
Facility expenses $ 19,310
Administrative expenses $ 9,152
The net operating income in the flexible budget for February would be closest to:
Version 1 188
A) $19,562
B) $19,468
C) $13,550
D) $13,700
334) Paulis 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 February, the kennel budgeted for 2,500 tenant-
days, but its actual level of activity was 2,480 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 35.30
Wages and salaries $ 2,500 $ 5.90
Food and supplies 400 13.80
Facility expenses 8,900 3.40
Administrative expenses 7,800 0.40
Total expenses $ 19,600 $ 23.50
Actual results for February:
Revenue $ 85,654
Wages and salaries $ 16,992
Food and supplies $ 33,084
Facility expenses $ 16,682
Administrative expenses $ 8,732
The net operating income in the flexible budget for February would be closest to:
A) $9,900
B) $10,083
C) $9,664
D) $10,246
Version 1 189
335) Paulis 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 February, the kennel budgeted for 5,200 tenant-
days, but its actual level of activity was 5,220 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 31.70
Wages and salaries $ 4,200 $ 7.70
Food and supplies 800 12.50
Facility expenses 8,600 4.70
Administrative expenses 7,600 0.50
Total expenses $ 21,200 $ 25.40
Actual results for February:
Revenue $ 108,980
Wages and salaries $ 23,620
Food and supplies $ 36,802
Facility expenses $ 19,370
Administrative expenses $ 9,164
The activity variance for net operating income in February would be closest to:
A) $8,464 F
B) $126 F
C) $126 U
D) $8,464 U
336) Paulis 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 February, the kennel budgeted for 2,500 tenant-
days, but its actual level of activity was 2,480 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 35.30
Wages and salaries $ 2,500 $ 5.90
Food and supplies 400 13.80
Facility expenses 8,900 3.40
Administrative expenses 7,800 0.40
Total expenses $ 19,600 $ 23.50
Actual results for February:
Revenue $ 85,654
Version 1 190
Wages and salaries $ 16,992
Food and supplies $ 33,084
Facility expenses $ 16,682
Administrative expenses $ 8,732
The activity variance for net operating income in February would be closest to:
A) $264 F
B) $264 U
C) $236 F
D) $236 U
337) Paulis 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 February, the kennel budgeted for 4,500 tenant-
days, but its actual level of activity was 4,480 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 31.00
Wages and salaries $ 3,500 $ 7.00
Food and supplies 900 11.80
Facility expenses 8,500 4.00
Administrative expenses 8,300 0.40
Total expenses $ 21,200 $ 23.20
Actual results for February:
Revenue $ 108,280
Wages and salaries $ 23,550
Food and supplies $ 36,795
Facility expenses $ 19,300
Administrative expenses $ 9,150
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 February
would be closest to:
Version 1 191
A) $5,741 F
B) $5,741 U
C) $5,585 U
D) $5,585 F
338) Paulis 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 February, the kennel budgeted for 2,500 tenant-
days, but its actual level of activity was 2,480 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 35.30
Wages and salaries $ 2,500 $ 5.90
Food and supplies 400 13.80
Facility expenses 8,900 3.40
Administrative expenses 7,800 0.40
Total expenses $ 19,600 $ 23.50
Actual results for February:
Revenue $ 85,654
Wages and salaries $ 16,992
Food and supplies $ 33,084
Facility expenses $ 16,682
Administrative expenses $ 8,732
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 February
would be closest to:
A) $500 F
B) $500 U
C) $264 F
D) $264 U
Version 1 192
339) Trevorrow 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 6,200 units, but its actual level of activity was 6,160 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for June:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 27.80
Direct labor $ 0 $ 3.10
Direct materials 0 10.20
Manufacturing overhead 37,200 1.10
Selling and administrative expenses 22,800 0.30
Total expenses $ 60,000 $ 14.70
Actual results for June:
Revenue $ 178,318
Direct labor $ 18,606
Direct materials $ 60,652
Manufacturing overhead $ 43,896
Selling and administrative expenses $ 24,688
The net operating income in the planning budget for June would be closest to:
A) $21,220
B) $20,696
C) $30,674
D) $30,279
340) Trevorrow 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 6,200 units, but its actual level of activity was 6,160 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for June:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 27.80
Direct labor $ 0 $ 3.10
Direct materials 0 10.20
Manufacturing overhead 37,200 1.10
Selling and administrative expenses 22,800 0.30
Total expenses $ 60,000 $ 14.70
Version 1 193
Actual results for June:
Revenue $ 178,318
Direct labor $ 18,606
Direct materials $ 60,652
Manufacturing overhead $ 43,896
Selling and administrative expenses $ 24,688
The net operating income in the flexible budget for June would be closest to:
A) $20,696
B) $30,279
C) $30,674
D) $21,220
341) Trevorrow 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 5,600 units, but its actual level of activity was 5,560 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for June:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 29.00
Direct labor $ 0 $ 3.60
Direct materials 0 9.70
Manufacturing overhead 38,700 1.30
Selling and administrative expenses 24,300 0.40
Total expenses $ 63,000 $ 15.00
Actual results for June:
Revenue $ 165,382
Direct labor $ 19,481
Direct materials $ 51,677
Manufacturing overhead $ 45,828
Selling and administrative expenses $ 26,554
The activity variance for net operating income in June would be closest to:
Version 1 194
A) $560 F
B) $560 U
C) $6,442 U
D) $6,442 F
342) Trevorrow 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 6,200 units, but its actual level of activity was 6,160 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for June:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 27.80
Direct labor $ 0 $ 3.10
Direct materials 0 10.20
Manufacturing overhead 37,200 1.10
Selling and administrative expenses 22,800 0.30
Total expenses $ 60,000 $ 14.70
Actual results for June:
Revenue $ 178,318
Direct labor $ 18,606
Direct materials $ 60,652
Manufacturing overhead $ 43,896
Selling and administrative expenses $ 24,688
The activity variance for net operating income in June would be closest to:
A) $524 F
B) $524 U
C) $9,256 U
D) $9,256 F
Version 1 195
343) Trevorrow 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 5,000 units, but its actual level of activity was 4,960 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for June:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 30.00
Direct labor $ 0 $ 2.90
Direct materials 0 10.80
Manufacturing overhead 38,100 1.10
Selling and administrative expenses 23,700 0.40
Total expenses $ 61,800 $ 15.20
Actual results for June:
Revenue $ 151,350
Direct labor $ 13,867
Direct materials $ 51,343
Manufacturing overhead $ 43,486
Selling and administrative expenses $ 25,754
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 June
would be closest to:
A) $4,700 U
B) $4,700 F
C) $5,292 U
D) $5,292 F
344) Trevorrow 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 6,200 units, but its actual level of activity was 6,160 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for June:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 27.80
Direct labor $ 0 $ 3.10
Direct materials 0 10.20
Version 1 196
Manufacturing overhead 37,200 1.10
Selling and administrative expenses 22,800 0.30
Total expenses $ 60,000 $ 14.70
Actual results for June:
Revenue $ 178,318
Direct labor $ 18,606
Direct materials $ 60,652
Manufacturing overhead $ 43,896
Selling and administrative expenses $ 24,688
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 June
would be closest to:
A) $9,256 U
B) $9,256 F
C) $9,780 U
D) $9,780 F
345) Guareno Clinic uses client-visits as its measure of activity. During December, the clinic
budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic
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 client-visit
Revenue $ 0 $ 45.20
Personnel expenses $ 34,300 $ 13.30
Medical supplies 1,600 5.40
Occupancy expenses 10,000 1.80
Administrative expenses 3,800 0.20
Total expenses $ 49,700 $ 20.70
Actual results for December:
Revenue $ 108,650
Personnel expenses $ 65,755
Medical supplies $ 14,380
Occupancy expenses $ 14,000
Administrative expenses $ 4,210
The administrative expenses in the planning budget for December would be closest to:
Version 1 197
A) $4,210
B) $4,290
C) $4,300
D) $4,296
346) Guareno Clinic uses client-visits as its measure of activity. During December, the clinic
budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic
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 client-visit
Revenue $ 0 $ 45.20
Personnel expenses $ 34,300 $ 13.30
Medical supplies 1,600 5.40
Occupancy expenses 10,000 1.80
Administrative expenses 3,800 0.20
Total expenses $ 49,700 $ 20.70
Actual results for December:
Revenue $ 108,650
Personnel expenses $ 65,755
Medical supplies $ 14,380
Occupancy expenses $ 14,000
Administrative expenses $ 4,210
The occupancy expenses in the flexible budget for December would be closest to:
A) $13,720
B) $14,410
C) $14,500
D) $14,286
Version 1 198
347) Guareno Clinic uses client-visits as its measure of activity. During December, the clinic
budgeted for 4,200 client-visits, but its actual level of activity was 4,120 client-visits. The clinic
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 client-visit
Revenue $ 0 $ 44.80
Personnel expenses $ 36,000 $ 13.40
Medical supplies 1,700 5.40
Occupancy expenses 11,700 2.30
Administrative expenses 5,500 0.30
Total expenses $ 54,900 $ 21.40
Actual results for December:
Revenue $ 183,760
Personnel expenses $ 90,350
Medical supplies $ 23,550
Occupancy expenses $ 20,685
Administrative expenses $ 6,835
The activity variance for administrative expenses in December would be closest to:
A) $24 U
B) $75 F
C) $75 U
D) $24 F
348) Guareno Clinic uses client-visits as its measure of activity. During December, the clinic
budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic
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 client-visit
Revenue $ 0 $ 45.20
Personnel expenses $ 34,300 $ 13.30
Medical supplies 1,600 5.40
Occupancy expenses 10,000 1.80
Administrative expenses 3,800 0.20
Total expenses $ 49,700 $ 20.70
Actual results for December:
Revenue $ 108,650
Version 1 199
Personnel expenses $ 65,755
Medical supplies $ 14,380
Occupancy expenses $ 14,000
Administrative expenses $ 4,210
The activity variance for administrative expenses in December would be closest to:
A) $10 U
B) $90 F
C) $90 U
D) $10 F
349) Guareno Clinic uses client-visits as its measure of activity. During December, the clinic
budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic
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 client-visit
Revenue $ 0 $ 45.20
Personnel expenses $ 34,300 $ 13.30
Medical supplies 1,600 5.40
Occupancy expenses 10,000 1.80
Administrative expenses 3,800 0.20
Total expenses $ 49,700 $ 20.70
Actual results for December:
Revenue $ 108,650
Personnel expenses $ 65,755
Medical supplies $ 14,380
Occupancy expenses $ 14,000
Administrative expenses $ 4,210
The spending variance for medical supplies in December would be closest to:
A) $720 F
B) $450 U
C) $720 U
D) $450 F
Version 1 200
350) Keisker Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 2,210 client-visits, but its actual level of activity was 2,200 client-visits. The clinic
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 client-visit
Revenue $ 0 $ 54.20
Personnel expenses $ 29,300 $ 18.00
Medical supplies 710 8.80
Occupancy expenses 7,110 2.10
Administrative expenses 4,810 0.20
Total expenses $ 41,930 $ 29.10
Actual results for November:
Revenue $ 121,089
Personnel expenses $ 66,365
Medical supplies $ 19,323
Occupancy expenses $ 11,070
Administrative expenses $ 5,159
The personnel expenses in the planning budget for November would be closest to:
A) $69,080
B) $67,948
C) $66,365
D) $68,900
351) Keisker Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,190 client-visits. The clinic
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 client-visit
Revenue $ 0 $ 54.10
Personnel expenses $ 29,200 $ 17.50
Medical supplies 700 8.70
Occupancy expenses 7,100 2.00
Administrative expenses 4,800 0.10
Total expenses $ 41,800 $ 28.30
Version 1 201
Actual results for November:
Revenue $ 120,989
Personnel expenses $ 66,265
Medical supplies $ 19,223
Occupancy expenses $ 10,970
Administrative expenses $ 5,059
The personnel expenses in the planning budget for November would be closest to:
A) $67,700
B) $66,568
C) $66,265
D) $67,525
352) Keisker Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,190 client-visits. The clinic
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 client-visit
Revenue $ 0 $ 54.10
Personnel expenses $ 29,200 $ 17.50
Medical supplies 700 8.70
Occupancy expenses 7,100 2.00
Administrative expenses 4,800 0.10
Total expenses $ 41,800 $ 28.30
Actual results for November:
Revenue $ 120,989
Personnel expenses $ 66,265
Medical supplies $ 19,223
Occupancy expenses $ 10,970
Administrative expenses $ 5,059
The occupancy expenses in the flexible budget for November would be closest to:
A) $11,500
B) $10,920
C) $11,020
D) $11,480
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353) Keisker Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,190 client-visits. The clinic
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 client-visit
Revenue $ 0 $ 54.10
Personnel expenses $ 29,200 $ 17.50
Medical supplies 700 8.70
Occupancy expenses 7,100 2.00
Administrative expenses 4,800 0.10
Total expenses $ 41,800 $ 28.30
Actual results for November:
Revenue $ 120,989
Personnel expenses $ 66,265
Medical supplies $ 19,223
Occupancy expenses $ 10,970
Administrative expenses $ 5,059
The activity variance for administrative expenses in November would be closest to:
A) $1 F
B) $39 F
C) $39 U
D) $1 U
354) Keisker Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,190 client-visits. The clinic
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 client-visit
Revenue $ 0 $ 54.10
Personnel expenses $ 29,200 $ 17.50
Medical supplies 700 8.70
Occupancy expenses 7,100 2.00
Administrative expenses 4,800 0.10
Total expenses $ 41,800 $ 28.30
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Actual results for November:
Revenue $ 120,989
Personnel expenses $ 66,265
Medical supplies $ 19,223
Occupancy expenses $ 10,970
Administrative expenses $ 5,059
The spending variance for occupancy expenses in November would be closest to:
A) $530 U
B) $510 F
C) $510 U
D) $530 F
355) Manter 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 6,900 units, but its actual level of activity was 6,940 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for June:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 32.10
Direct labor $ 0 $ 5.00
Direct materials 0 13.60
Manufacturing overhead 31,500 1.20
Selling and administrative expenses 23,700 0.70
Total expenses $ 55,200 $ 20.50
Actual results for June:
Revenue $ 219,604
Direct labor $ 34,990
Direct materials $ 94,364
Manufacturing overhead $ 39,668
Selling and administrative expenses $ 29,888
The selling and administrative expenses in the planning budget for June would be closest to:
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A) $29,716
B) $28,530
C) $29,888
D) $28,558
356) Manter 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 6,900 units, but its actual level of activity was 6,940 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for June:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 32.10
Direct labor $ 0 $ 5.00
Direct materials 0 13.60
Manufacturing overhead 31,500 1.20
Selling and administrative expenses 23,700 0.70
Total expenses $ 55,200 $ 20.50
Actual results for June:
Revenue $ 219,604
Direct labor $ 34,990
Direct materials $ 94,364
Manufacturing overhead $ 39,668
Selling and administrative expenses $ 29,888
The direct materials in the flexible budget for June would be closest to:
A) $94,384
B) $93,840
C) $93,820
D) $94,911
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357) Manter 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 6,900 units, but its actual level of activity was 6,940 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for June:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 32.10
Direct labor $ 0 $ 5.00
Direct materials 0 13.60
Manufacturing overhead 31,500 1.20
Selling and administrative expenses 23,700 0.70
Total expenses $ 55,200 $ 20.50
Actual results for June:
Revenue $ 219,604
Direct labor $ 34,990
Direct materials $ 94,364
Manufacturing overhead $ 39,668
Selling and administrative expenses $ 29,888
The activity variance for direct labor in June would be closest to:
A) $200 U
B) $200 F
C) $490 U
D) $490 F
358) Manter 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 6,900 units, but its actual level of activity was 6,940 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for June:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 32.10
Direct labor $ 0 $ 5.00
Direct materials 0 13.60
Manufacturing overhead 31,500 1.20
Selling and administrative expenses 23,700 0.70
Total expenses $ 55,200 $ 20.50
Version 1 206
Actual results for June:
Revenue $ 219,604
Direct labor $ 34,990
Direct materials $ 94,364
Manufacturing overhead $ 39,668
Selling and administrative expenses $ 29,888
The spending variance for direct materials in June would be closest to:
A) $524 F
B) $20 F
C) $20 U
D) $524 U
359) Neeb 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 7,040 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for January:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 27.20
Direct labor $ 0 $ 3.20
Direct materials 0 9.70
Manufacturing overhead 44,300 1.10
Selling and administrative expenses 27,000 0.40
Total expenses $ 71,300 $ 14.40
Actual results for January:
Revenue $ 183,448
Direct labor $ 23,178
Direct materials $ 68,808
Manufacturing overhead $ 49,784
Selling and administrative expenses $ 30,246
The direct labor in the planning budget for January would be closest to:
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A) $22,400
B) $23,178
C) $22,528
D) $23,046
360) Neeb 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 7,040 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for January:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 27.20
Direct labor $ 0 $ 3.20
Direct materials 0 9.70
Manufacturing overhead 44,300 1.10
Selling and administrative expenses 27,000 0.40
Total expenses $ 71,300 $ 14.40
Actual results for January:
Revenue $ 183,448
Direct labor $ 23,178
Direct materials $ 68,808
Manufacturing overhead $ 49,784
Selling and administrative expenses $ 30,246
The manufacturing overhead in the flexible budget for January would be closest to:
A) $49,501
B) $52,000
C) $52,044
D) $50,068
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361) Neeb 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 7,040 units, but its actual level of activity was 7,120 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for January:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 27.60
Direct labor $ 0 $ 3.60
Direct materials 0 10.10
Manufacturing overhead 44,700 1.50
Selling and administrative expenses 23,000 0.50
Total expenses $ 67,700 $ 15.70
Actual results for January:
Revenue $ 183,848
Direct labor $ 23,578
Direct materials $ 69,208
Manufacturing overhead $ 50,184
Selling and administrative expenses $ 26,646
The activity variance for selling and administrative expenses in January would be closest to:
A) $126 U
B) $40 U
C) $126 F
D) $40 F
362) Neeb 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 7,040 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for January:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 27.20
Direct labor $ 0 $ 3.20
Direct materials 0 9.70
Version 1 209
Manufacturing overhead 44,300 1.10
Selling and administrative expenses 27,000 0.40
Total expenses $ 71,300 $ 14.40
Actual results for January:
Revenue $ 183,448
Direct labor $ 23,178
Direct materials $ 68,808
Manufacturing overhead $ 49,784
Selling and administrative expenses $ 30,246
The activity variance for selling and administrative expenses in January would be closest to:
A) $446 U
B) $16 U
C) $446 F
D) $16 F
363) Neeb 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 7,040 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for January:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 27.20
Direct labor $ 0 3.20
Direct materials 0 9.70
Manufacturing overhead 44,300 1.10
Selling and administrative expenses 27,000 0.40
Total expenses $ 71,300 $ 14.40
Actual results for January:
Revenue $ 183,448
Direct labor $ 23,178
Direct materials $ 68,808
Manufacturing overhead $ 49,784
Selling and administrative expenses $ 30,246
The spending variance for manufacturing overhead in January would be closest to:
Version 1 210
A) $2,216 U
B) $2,260 F
C) $2,260 U
D) $2,216 F
364) Meinke 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 April, the kennel budgeted for 3,700
tenant-days, but its actual level of activity was 3,680 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for April:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 33.80
Wages and salaries $ 3,100 $ 6.40
Food and supplies 1,000 14.40
Facility expenses 9,100 3.40
Administrative expenses 6,500 0.40
Total expenses $ 19,700 $ 24.60
Actual results for April:
Revenue $ 118,524
Wages and salaries $ 27,122
Food and supplies $ 51,982
Facility expenses $ 20,852
Administrative expenses $ 8,052
The administrative expenses in the planning budget for April would be closest to:
A) $7,972
B) $8,052
C) $7,980
D) $8,096
Version 1 211
365) Meinke 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 April, the kennel budgeted for 3,700
tenant-days, but its actual level of activity was 3,680 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for April:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 33.80
Wages and salaries $ 3,100 $ 6.40
Food and supplies 1,000 14.40
Facility expenses 9,100 3.40
Administrative expenses 6,500 0.40
Total expenses $ 19,700 $ 24.60
Actual results for April:
Revenue $ 118,524
Wages and salaries $ 27,122
Food and supplies $ 51,982
Facility expenses $ 20,852
Administrative expenses $ 8,052
The food and supplies in the flexible budget for April would be closest to:
A) $54,280
B) $53,992
C) $52,265
D) $51,701
366) Meinke 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 April, the kennel budgeted for 3,700
tenant-days, but its actual level of activity was 3,680 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for April:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 33.80
Wages and salaries $ 3,100 $ 6.40
Food and supplies 1,000 14.40
Facility expenses 9,100 3.40
Administrative expenses 6,500 0.40
Total expenses $ 19,700 $ 24.60
Actual results for April:
Revenue $ 118,524
Version 1 212
Wages and salaries $ 27,122
Food and supplies $ 51,982
Facility expenses $ 20,852
Administrative expenses $ 8,052
The activity variance for wages and salaries in April would be closest to:
A) $128 U
B) $342 F
C) $128 F
D) $342 U
367) Meinke 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 April, the kennel budgeted for 3,700
tenant-days, but its actual level of activity was 3,680 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for April:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 33.80
Wages and salaries $ 3,100 $ 6.40
Food and supplies 1,000 14.40
Facility expenses 9,100 3.40
Administrative expenses 6,500 0.40
Total expenses $ 19,700 $ 24.60
Actual results for April:
Revenue $ 118,524
Wages and salaries $ 27,122
Food and supplies $ 51,982
Facility expenses $ 20,852
Administrative expenses $ 8,052
The spending variance for food and supplies in April would be closest to:
A) $2,010 U
B) $2,298 F
C) $2,010 F
D) $2,298 U
Version 1 213
368) Fager Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,250 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:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 68.20
Personnel expenses $ 32,300 $ 21.50
Medical supplies 1,200 12.50
Occupancy expenses 9,700 3.40
Administrative expenses 5,000 0.10
Total expenses $ 48,200 $ 37.50
Actual results for February:
Revenue $ 156,210
Personnel expenses $ 80,445
Medical supplies $ 30,105
Occupancy expenses $ 16,800
Administrative expenses $ 5,015
The personnel expenses in the planning budget for February would be closest to:
A) $80,675
B) $80,445
C) $79,600
D) $78,657
369) Fager Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,250 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:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 68.20
Personnel expenses $ 32,300 $ 21.50
Medical supplies 1,200 12.50
Occupancy expenses 9,700 3.40
Administrative expenses 5,000 0.10
Total expenses $ 48,200 $ 37.50
Version 1 214
Actual results for February:
Revenue $ 156,210
Personnel expenses $ 80,445
Medical supplies $ 30,105
Occupancy expenses $ 16,800
Administrative expenses $ 5,015
The medical supplies in the flexible budget for February would be closest to:
A) $29,436
B) $30,789
C) $29,325
D) $28,700
370) Fager Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,250 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:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 68.20
Personnel expenses $ 32,300 $ 21.50
Medical supplies 1,200 12.50
Occupancy expenses 9,700 3.40
Administrative expenses 5,000 0.10
Total expenses $ 48,200 $ 37.50
Actual results for February:
Revenue $ 156,210
Personnel expenses $ 80,445
Medical supplies $ 30,105
Occupancy expenses $ 16,800
Administrative expenses $ 5,015
The activity variance for personnel expenses in February would be closest to:
A) $845 U
B) $1,075 F
C) $1,075 U
D) $845 F
Version 1 215
371) Fager Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 2,320 client-visits, but its actual level of activity was 2,370 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:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 69.40
Personnel expenses $ 33,500 $ 22.70
Medical supplies 2,400 13.70
Occupancy expenses 10,900 4.60
Administrative expenses 6,200 1.30
Total expenses $ 53,000 $ 42.30
Actual results for February:
Revenue $ 168,210
Personnel expenses $ 82,845
Medical supplies $ 32,505
Occupancy expenses $ 19,200
Administrative expenses $ 7,415
The revenue variance for February would be closest to:
A) $3,732 U
B) $3,732 F
C) $7,202 U
D) $7,202 F
372) Fager Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,250 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:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 68.20
Personnel expenses $ 32,300 $ 21.50
Medical supplies 1,200 12.50
Occupancy expenses 9,700 3.40
Administrative expenses 5,000 0.10
Total expenses $ 48,200 $ 37.50
Version 1 216
Actual results for February:
Revenue $ 156,210
Personnel expenses $ 80,445
Medical supplies $ 30,105
Occupancy expenses $ 16,800
Administrative expenses $ 5,015
The revenue variance for February would be closest to:
A) $2,760 U
B) $2,760 F
C) $6,170 U
D) $6,170 F
373) Fager Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,250 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:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 68.20
Personnel expenses $ 32,300 $ 21.50
Medical supplies 1,200 12.50
Occupancy expenses 9,700 3.40
Administrative expenses 5,000 0.10
Total expenses $ 48,200 $ 37.50
Actual results for February:
Revenue $ 156,210
Personnel expenses $ 80,445
Medical supplies $ 30,105
Occupancy expenses $ 16,800
Administrative expenses $ 5,015
The spending variance for medical supplies in February would be closest to:
A) $1,405 F
B) $780 F
C) $780 U
D) $1,405 U
Version 1 217
374) Schriever Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed element per month Variable Element per Well Serviced
Revenue $ 4,500
Employee salaries and wages $ 57,200 $ 1,100
Servicing materials $ 600
Other expenses $ 31,000
The planning budget for May was based on 36 wells serviced, but a total of 31 wells were
actually serviced in May.
The activity variance for revenue for May would have been closest to:
A) $22,500 F
B) $20,300 F
C) $22,500 U
D) $20,300 U
375) Schriever Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed element per month Variable Element per Well Serviced
Revenue $ 4,500
Employee salaries and wages $ 57,200 $ 1,100
Servicing materials $ 600
Other expenses $ 31,000
The planning budget for May was based on 36 wells serviced, but a total of 31 wells were
actually serviced in May.
The activity variance for “Employee salaries and wages” for May would have been closest to:
A) $5,500 F
B) $7,500 F
C) $5,500 U
D) $7,500 U
Version 1 218
376) Schriever Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed element per month Variable Element per Well Serviced
Revenue $ 4,500
Employee salaries and wages $ 57,200 $ 1,100
Servicing materials $ 600
Other expenses $ 31,000
The planning budget for May was based on 36 wells serviced, but a total of 31 wells were
actually serviced in May.
The activity variance for “Servicing materials” for May would have been closest to:
A) $2,800 U
B) $3,000 F
C) $2,800 F
D) $3,000 U
377) Schriever Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed element per month Variable Element per Well Serviced
Revenue $ 4,500
Employee salaries and wages $ 57,200 $ 1,100
Servicing materials $ 600
Other expenses $ 31,000
The planning budget for May was based on 36 wells serviced, but a total of 31 wells were
actually serviced in May.
The activity variance for “Other expenses” for May would have been closest to:
A) $200 U
B) $0
C) $200 F
D) $4,767.74 U
Version 1 219
378) Schriever Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed element per month Variable Element per Well Serviced
Revenue $ 4,500
Employee salaries and wages $ 57,200 $ 1,100
Servicing materials $ 600
Other expenses $ 31,000
The planning budget for May was based on 36 wells serviced, but a total of 31 wells were
actually serviced in May.
The activity variance for total expenses for May would have been closest to:
A) $10,500 F
B) $8,500 F
C) $10,500 U
D) $8,500 U
379) Schriever Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed element per month Variable Element per Well Serviced
Revenue $ 4,500
Employee salaries and wages $ 57,200 $ 1,100
Servicing materials $ 600
Other expenses $ 31,000
The planning budget for May was based on 36 wells serviced, but a total of 31 wells were
actually serviced in May.
The activity variance for net operating income for May would have been closest to:
A) $9,800 U
B) $9,800 F
C) $14,000 U
D) $14,000 F
Version 1 220
380) Bernes 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 October, the kennel budgeted for 2,700 tenant-
days, but its actual level of activity was 2,720 tenant-days. The kennel has provided the
following data concerning the formulas to be used in its budgeting:
Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 30.80
Wages and salaries $ 3,300 $ 6.10
Food and supplies 600 10.10
Facility expenses 8,800 3.60
Administrative expenses 7,600 0.10
Total expenses $ 20,300 $ 19.90
The activity variance for wages and salaries in October would be closest to:
A) $298 U
B) $122 F
C) $298 F
D) $122 U
381) Bernes 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 October, the kennel budgeted for 2,700 tenant-
days, but its actual level of activity was 2,720 tenant-days. The kennel has provided the
following data concerning the formulas to be used in its budgeting:
Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 30.80
Wages and salaries $ 3,300 $ 6.10
Food and supplies 600 10.10
Facility expenses 8,800 3.60
Administrative expenses 7,600 0.10
Total expenses $ 20,300 $ 19.90
The activity variance for administrative expenses in October would be closest to:
Version 1 221
A) $2 F
B) $162 F
C) $162 U
D) $2 U
382) Bernes 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 October, the kennel budgeted for 2,700 tenant-
days, but its actual level of activity was 2,720 tenant-days. The kennel has provided the
following data concerning the formulas to be used in its budgeting:
Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 30.80
Wages and salaries $ 3,300 $ 6.10
Food and supplies 600 10.10
Facility expenses 8,800 3.60
Administrative expenses 7,600 0.10
Total expenses $ 20,300 $ 19.90
The activity variance for net operating income in October would be closest to:
A) $2,328 F
B) $218 U
C) $218 F
D) $2,328 U
383) Rogstad Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During March, the company
budgeted for 6,700 units, but its actual level of activity was 6,670 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 $ 0 $ 34.00
Direct labor $ 0 $ 7.20
Direct materials 0 12.00
Manufacturing overhead 40,500 1.30
Selling and administrative expenses 23,200 0.40
Version 1 222
Total expenses $ 63,700 $ 20.90
The activity variance for direct labor in March would be closest to:
A) $2,406 U
B) $216 U
C) $216 F
D) $2,406 F
384) Rogstad Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During March, the company
budgeted for 6,700 units, but its actual level of activity was 6,670 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 $ 0 $ 34.00
Direct labor $ 0 $ 7.20
Direct materials 0 12.00
Manufacturing overhead 40,500 1.30
Selling and administrative expenses 23,200 0.40
Total expenses $ 63,700 $ 20.90
The activity variance for selling and administrative expenses in March would be closest to:
A) $12 U
B) $12 F
C) $38 U
D) $38 F
385) Rogstad Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During March, the company
budgeted for 6,700 units, but its actual level of activity was 6,670 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 $ 0 $ 34.00
Direct labor $ 0 $ 7.20
Direct materials 0 12.00
Manufacturing overhead 40,500 1.30
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Selling and administrative expenses 23,200 0.40
Total expenses $ 63,700 $ 20.90
The activity variance for net operating income in March would be closest to:
A) $393 U
B) $2,963 U
C) $2,963 F
D) $393 F
386) Feemster Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During October, the company
budgeted for 5,900 units, but its actual level of activity was 5,850 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for October:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 29.90
Direct labor $ 0 $ 5.60
Direct materials 0 8.60
Manufacturing overhead 37,000 1.30
Selling and administrative expenses 27,200 0.80
Total expenses $ 64,200 $ 16.30
Actual results for October:
Revenue $ 176,095
Direct labor $ 31,510
Direct materials $ 49,800
Manufacturing overhead $ 45,775
Selling and administrative expenses $ 31,670
The activity variance for direct labor in October would be closest to:
A) $280 U
B) $280 F
C) $1,530 U
D) $1,530 F
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387) Feemster Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During October, the company
budgeted for 6,090 units, but its actual level of activity was 6,040 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for October:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 31.80
Direct labor $ 0 $ 7.50
Direct materials 0 10.50
Manufacturing overhead 38,900 3.20
Selling and administrative expenses 25,300 2.70
Total expenses $ 64,200 $ 23.90
Actual results for October:
Revenue $ 185,595
Direct labor $ 41,010
Direct materials $ 59,300
Manufacturing overhead $ 55,275
Selling and administrative expenses $ 41,170
The activity variance for selling and administrative expenses in October would be closest to:
A) $573 F
B) $135 U
C) $573 U
D) $135 F
388) Feemster Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During October, the company
budgeted for 5,900 units, but its actual level of activity was 5,850 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for October:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 29.90
Direct labor $ 0 $ 5.60
Direct materials 0 8.60
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Manufacturing overhead 37,000 1.30
Selling and administrative expenses 27,200 0.80
Total expenses $ 64,200 $ 16.30
Actual results for October:
Revenue $ 176,095
Direct labor $ 31,510
Direct materials $ 49,800
Manufacturing overhead $ 45,775
Selling and administrative expenses $ 31,670
The activity variance for selling and administrative expenses in October would be closest to:
A) $250 F
B) $40 U
C) $250 U
D) $40 F
389) Feemster Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During October, the company
budgeted for 5,900 units, but its actual level of activity was 5,850 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for October:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue $ 0 $ 29.90
Direct labor $ 0 $ 5.60
Direct materials 0 8.60
Manufacturing overhead 37,000 1.30
Selling and administrative expenses 27,200 0.80
Total expenses $ 64,200 $ 16.30
Actual results for October:
Revenue $ 176,095
Direct labor $ 31,510
Direct materials $ 49,800
Manufacturing overhead $ 45,775
Selling and administrative expenses $ 31,670
The activity variance for net operating income in October would be closest to:
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A) $680 U
B) $680 F
C) $1,300 F
D) $1,300 U
390) Kaina Clinic uses client-visits as its measure of activity. During May, the clinic budgeted
for 3,000 client-visits, but its actual level of activity was 2,970 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:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 25.80
Personnel expenses $ 20,200 $ 7.10
Medical supplies 900 4.60
Occupancy expenses 5,500 0.70
Administrative expenses 3,500 0.20
Total expenses $ 30,100 $ 12.60
Actual results for May:
Revenue $ 78,246
Personnel expenses $ 42,647
Medical supplies $ 15,002
Occupancy expenses $ 7,289
Administrative expenses $ 4,294
The activity variance for personnel expenses in May would be closest to:
A) $213 U
B) $213 F
C) $1,147 U
D) $1,147 F
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391) Kaina Clinic uses client-visits as its measure of activity. During May, the clinic budgeted
for 3,000 client-visits, but its actual level of activity was 2,970 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:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 25.80
Personnel expenses $ 20,200 $ 7.10
Medical supplies 900 4.60
Occupancy expenses 5,500 0.70
Administrative expenses 3,500 0.20
Total expenses $ 30,100 $ 12.60
Actual results for May:
Revenue $ 78,246
Personnel expenses $ 42,647
Medical supplies $ 15,002
Occupancy expenses $ 7,289
Administrative expenses $ 4,294
The activity variance for administrative expenses in May would be closest to:
A) $6 U
B) $6 F
C) $194 U
D) $194 F
392) Kaina Clinic uses client-visits as its measure of activity. During May, the clinic budgeted
for 3,000 client-visits, but its actual level of activity was 2,970 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:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 25.80
Personnel expenses $ 20,200 $ 7.10
Medical supplies 900 4.60
Occupancy expenses 5,500 0.70
Administrative expenses 3,500 0.20
Total expenses $ 30,100 $ 12.60
Actual results for May:
Revenue $ 78,246
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Personnel expenses $ 42,647
Medical supplies $ 15,002
Occupancy expenses $ 7,289
Administrative expenses $ 4,294
The activity variance for net operating income in May would be closest to:
A) $396 F
B) $396 U
C) $486 F
D) $486 U
393) Korsak 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.
Fixed Element per Month Variable Element per Customer Served
Revenue $ 5,500
Employee salaries and wages $ 43,700 $ 1,100
Travel expenses $ 500
Other expenses $ 43,200
The planning budget for October was based on serving 23 customers, but a total of 19 customers
were actually served during October.
The activity variance for revenue for October would have been closest to:
A) $22,000 U
B) $20,400 U
C) $22,000 F
D) $20,400 F
394) Korsak 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.
Fixed Element per Month Variable Element per Customer Served
Revenue $ 5,500
Employee salaries and wages $ 43,700 $ 1,100
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Travel expenses $ 500
Other expenses $ 43,200
The planning budget for October was based on serving 23 customers, but a total of 19 customers
were actually served during October.
The activity variance for “Employee salaries and wages” for October would have been closest
to:
A) $4,800 U
B) $4,800 F
C) $4,400 U
D) $4,400 F
395) Korsak 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.
Fixed Element per Month Variable Element per Customer Served
Revenue $ 5,500
Employee salaries and wages $ 43,700 $ 1,100
Travel expenses $ 500
Other expenses $ 43,200
The planning budget for October was based on serving 23 customers, but a total of 19 customers
were actually served during October.
The activity variance for “Travel expenses” for October would have been closest to:
A) $2,300 F
B) $2,300 U
C) $2,000 U
D) $2,000 F
396) Korsak 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.
Fixed Element per Month Variable Element per Customer Served
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Revenue $ 5,500
Employee salaries and wages $ 43,700 $ 1,100
Travel expenses $ 500
Other expenses $ 43,200
The planning budget for October was based on serving 23 customers, but a total of 19 customers
were actually served during October.
The activity variance for “Other expenses” for October would have been closest to:
A) $8,126.32 U
B) $800 U
C) $800 F
D) $0
397) Korsak 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.
Fixed Element per Month Variable Element per Customer Served
Revenue $ 5,500
Employee salaries and wages $ 43,700 $ 1,100
Travel expenses $ 500
Other expenses $ 43,200
The planning budget for October was based on serving 23 customers, but a total of 19 customers
were actually served during October.
The activity variance for total expenses for October would have been closest to:
A) $6,400 F
B) $6,400 U
C) $7,900 U
D) $7,900 F
398) Korsak 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.
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Fixed Element per Month Variable Element per Customer Served
Revenue $ 5,500
Employee salaries and wages $ 43,700 $ 1,100
Travel expenses $ 500
Other expenses $ 43,200
The planning budget for October was based on serving 23 customers, but a total of 19 customers
were actually served during October.
The activity variance for net operating income for October would have been closest to:
A) $15,600 U
B) $12,500 F
C) $15,600 F
D) $12,500 U
399) Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 3,450 client-visits, but its actual level of activity was 3,400 client-visits. The clinic has
provided the following data concerning the formulas to be used in its budgeting:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 39.50
Personnel expenses $ 35,500 $ 10.70
Medical supplies 1,500 7.50
Occupancy expenses 8,500 1.50
Administrative expenses 5,500 0.60
Total expenses $ 51,000 $ 20.30
The activity variance for personnel expenses in July would be closest to:
A) $535 F
B) $2,975 U
C) $2,975 F
D) $535 U
400) Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 2,000 client-visits, but its actual level of activity was 2,010 client-visits. The clinic has
provided the following data concerning the formulas to be used in its budgeting:
Version 1 232
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 43.70
Personnel expenses $ 26,100 $ 12.10
Medical supplies 1,000 6.30
Occupancy expenses 6,800 1.60
Administrative expenses 3,000 0.20
Total expenses $ 36,900 $ 20.20
The activity variance for personnel expenses in July would be closest to:
A) $901 F
B) $901 U
C) $121 F
D) $121 U
401) Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 4,150 client-visits, but its actual level of activity was 4,080 client-visits. The clinic has
provided the following data concerning the formulas to be used in its budgeting:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 40.90
Personnel expenses $ 36,900 $ 12.10
Medical supplies 2,900 8.90
Occupancy expenses 9,900 2.90
Administrative expenses 6,900 0.20
Total expenses $ 56,600 $ 24.10
The activity variance for administrative expenses in July would be closest to:
A) $74 F
B) $14 U
C) $74 U
D) $14 F
402) Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 2,000 client-visits, but its actual level of activity was 2,010 client-visits. The clinic has
provided the following data concerning the formulas to be used in its budgeting:
Fixed element per month Variable element per client-visit
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Revenue $ 0 $ 43.70
Personnel expenses $ 26,100 $ 12.10
Medical supplies 1,000 6.30
Occupancy expenses 6,800 1.60
Administrative expenses 3,000 0.20
Total expenses $ 36,900 $ 20.20
The activity variance for administrative expenses in July would be closest to:
A) $2 U
B) $162 F
C) $2 F
D) $162 U
403) Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 3,550 client-visits, but its actual level of activity was 3,490 client-visits. The clinic has
provided the following data concerning the formulas to be used in its budgeting:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 39.70
Personnel expenses $ 35,700 $ 10.90
Medical supplies 1,700 7.70
Occupancy expenses 8,700 1.70
Administrative expenses 5,700 0.80
Total expenses $ 51,800 $ 21.10
The activity variance for net operating income in July would be closest to:
A) $366 F
B) $1,116 F
C) $366 U
D) $1,116 U
404) Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 2,000 client-visits, but its actual level of activity was 2,010 client-visits. The clinic has
provided the following data concerning the formulas to be used in its budgeting:
Fixed element per month Variable element per client-visit
Revenue $ 0 $ 43.70
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Personnel expenses $ 26,100 $ 12.10
Medical supplies 1,000 6.30
Occupancy expenses 6,800 1.60
Administrative expenses 3,000 0.20
Total expenses $ 36,900 $ 20.20
The activity variance for net operating income in July would be closest to:
A) $235 F
B) $235 U
C) $2,825 F
D) $2,825 U
405) Neighbors 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 April, the kennel budgeted for 3,000
tenant-days, but its actual level of activity was 2,960 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for April:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 27.30
Wages and salaries 2,900 $ 5.70
Food and supplies 400 8.30
Facility expenses 9,500 3.80
Administrative expenses 6,700 0.40
Total expenses 19,500 $ 18.20
Actual results for April:
Revenue $ 82,088
Wages and salaries $ 20,112
Food and supplies $ 24,418
Facility expenses $ 21,538
Administrative expenses $ 8,094
The activity variance for wages and salaries in April would be closest to:
A) $228 F
B) $112 F
C) $228 U
D) $112 U
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406) Neighbors 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 April, the kennel budgeted for 3,000
tenant-days, but its actual level of activity was 2,960 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for April:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 27.30
Wages and salaries $ 2,900 $ 5.70
Food and supplies 400 8.30
Facility expenses 9,500 3.80
Administrative expenses 6,700 0.40
Total expenses $ 19,500 $ 18.20
Actual results for April:
Revenue $ 82,088
Wages and salaries $ 20,112
Food and supplies $ 24,418
Facility expenses $ 21,538
Administrative expenses $ 8,094
The activity variance for administrative expenses in April would be closest to:
A) $194 U
B) $16 U
C) $16 F
D) $194 F
407) Neighbors 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 April, the kennel budgeted for 3,000
tenant-days, but its actual level of activity was 2,960 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for April:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 27.30
Wages and salaries $ 2,900 $ 5.70
Food and supplies 400 8.30
Facility expenses 9,500 3.80
Administrative expenses 6,700 0.40
Total expenses $ 19,500 $ 18.20
Version 1 236
Actual results for April:
Revenue $ 82,088
Wages and salaries $ 20,112
Food and supplies $ 24,418
Facility expenses $ 21,538
Administrative expenses $ 8,094
The activity variance for net operating income in April would be closest to:
A) $126 F
B) $126 U
C) $364 F
D) $364 U
408) Lochner Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes and the actual results of operations for June.
Fixed Element per Month Variable Element per Well Serviced
Actual Total for June
Revenue $ 5,600 $ 148,000
Employee salaries and wages $ 40,600 $ 1,200 $ 73,700
Servicing materials $ 500 $ 13,600
Other expenses $ 42,800 $ 43,300
When the company prepared its planning budget at the beginning of June, it assumed that 24
wells would have been serviced. However, 26 wells were actually serviced during June.
The activity variance for revenue for June would have been closest to:
A) $13,600 U
B) $13,600 F
C) $11,200 F
D) $11,200 U
409) Lochner Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes and the actual results of operations for June.
Version 1 237
Fixed Element per Month Variable Element per Well Serviced
Actual Total for June
Revenue $ 5,600 $ 148,000
Employee salaries and wages $ 40,600 $ 1,200 $ 73,700
Servicing materials $ 500 $ 13,600
Other expenses $ 42,800 $ 43,300
When the company prepared its planning budget at the beginning of June, it assumed that 24
wells would have been serviced. However, 26 wells were actually serviced during June.
The activity variance for “Employee salaries and wages” for June would have been closest to:
A) $2,400 F
B) $4,300 U
C) $4,300 F
D) $2,400 U
410) Lochner Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes and the actual results of operations for June.
Fixed Element per Month Variable Element per Well Serviced
Actual Total for June
Revenue $ 5,600 $ 148,000
Employee salaries and wages $ 40,600 $ 1,200 $ 73,700
Servicing materials $ 500 $ 13,600
Other expenses $ 42,800 $ 43,300
When the company prepared its planning budget at the beginning of June, it assumed that 24
wells would have been serviced. However, 26 wells were actually serviced during June.
The revenue variance in the Revenue and Spending Variances column of a report comparing
actual results to the flexible budget for June would have been closest to:
A) $2,400 U
B) $13,600 U
C) $2,400 F
D) $13,600 F
Version 1 238
411) Lochner Corporation is an oil well service company that measures its output by the
number of wells serviced. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes and the actual results of operations for June.
Fixed Element per Month Variable Element per Well Serviced
Actual Total for June
Revenue $ 5,600 $ 148,000
Employee salaries and wages $ 40,600 $ 1,200 $ 73,700
Servicing materials $ 500 $ 13,600
Other expenses $ 42,800 $ 43,300
When the company prepared its planning budget at the beginning of June, it assumed that 24
wells would have been serviced. However, 26 wells were actually serviced during June.
The spending variance for “Employee salaries and wages” for June would have been closest to:
A) $1,900 U
B) $4,300 U
C) $4,300 F
D) $1,900 F
412) Skoff 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 $ 4,000 $ 130,000
Employee salaries and wages $ 42,700 $ 1,000 $ 75,600
Refurbishing materials $ 600 $ 18,800
Other expenses $ 37,900 $ 38,400
When the company prepared its planning budget at the beginning of March, it assumed that 35
containers would have been refurbished. However, 32 containers were actually refurbished
during March.
The activity variance for “Refurbishing materials” for March would have been closest to:
A) $1,800 F
B) $2,200 U
C) $1,800 U
D) $2,200 F
Version 1 239
413) Skoff 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 $ 4,000 $ 130,000
Employee salaries and wages $ 42,700 $ 1,000 $ 75,600
Refurbishing materials $ 600 $ 18,800
Other expenses $ 37,900 $ 38,400
When the company prepared its planning budget at the beginning of March, it assumed that 35
containers would have been refurbished. However, 32 containers were actually refurbished
during March.
The activity variance for “Other expenses” for March would have been closest to:
A) $0
B) $4,100 U
C) $500 F
D) $500 U
414) Skoff 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 $ 4,000 $ 130,000
Employee salaries and wages $ 42,700 $ 1,000 $ 75,600
Refurbishing materials $ 600 $ 18,800
Other expenses $ 37,900 $ 38,400
When the company prepared its planning budget at the beginning of March, it assumed that 35
containers would have been refurbished. However, 32 containers were actually refurbished
during March.
The spending variance for “Refurbishing materials” for March would have been closest to:
Version 1 240
A) $2,200 F
B) $400 F
C) $400 U
D) $2,200 U
415) Skoff 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 $ 4,000 $ 130,000
Employee salaries and wages $ 42,700 $ 1,000 $ 75,600
Refurbishing materials $ 600 $ 18,800
Other expenses $ 37,900 $ 38,400
When the company prepared its planning budget at the beginning of March, it assumed that 35
containers would have been refurbished. However, 32 containers were actually refurbished
during March.
The spending variance for “Other expenses” for March would have been closest to:
A) $500 F
B) $3,600 F
C) $500 U
D) $3,600 U
416) Prestridge 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 August.
Fixed Element per Month Variable Element per Customer Served
Actual Total for August
Revenue $ 4,100 $ 120,500
Employee salaries and wages $ 41,500 $ 1,000 $ 71,200
Travel expenses $ 500 $ 14,800
Other expenses $ 38,900 $ 38,400
Version 1 241
When the company prepared its planning budget at the beginning of August, it assumed that 31
customers would have been served. However, 29 customers were actually served during August.
The spending variance for total expenses for August would have been closest to:
A) $2,500 U
B) $2,500 F
C) $500 F
D) $500 U
417) Prestridge 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 August.
Fixed Element per Month Variable Element per Customer Served
Actual Total for August
Revenue $ 4,100 $ 120,500
Employee salaries and wages $ 41,500 $ 1,000 $ 71,200
Travel expenses $ 500 $ 14,800
Other expenses $ 38,900 $ 38,400
When the company prepared its planning budget at the beginning of August, it assumed that 31
customers would have been served. However, 29 customers were actually served during August.
The variance for net operating income in the Revenue and Spending Variances column of a
report comparing actual results to the flexible budget for August would have been closest to:
A) $4,100 U
B) $4,100 F
C) $1,100 U
D) $1,100 F
418) Prestridge 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 August.
Fixed Element per Month Variable Element per Customer Served
Actual Total for August
Revenue $ 4,100 $ 120,500
Employee salaries and wages $ 41,500 $ 1,000 $ 71,200
Travel expenses $ 500 $ 14,800
Version 1 242
Other expenses $ 38,900 $ 38,400
When the company prepared its planning budget at the beginning of August, it assumed that 31
customers would have been served. However, 29 customers were actually served during August.
The activity variance for total expenses for August would have been closest to:
A) $3,000 U
B) $2,500 F
C) $3,000 F
D) $2,500 U
419) Prestridge 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 August.
Fixed Element per Month Variable Element per Customer Served
Actual Total for August
Revenue $ 4,100 $ 120,500
Employee salaries and wages $ 41,500 $ 1,000 $ 71,200
Travel expenses $ 500 $ 14,800
Other expenses $ 38,900 $ 38,400
When the company prepared its planning budget at the beginning of August, it assumed that 31
customers would have been served. However, 29 customers were actually served during August.
The activity variance for net operating income for August would have been closest to:
A) $5,200 F
B) $4,100 U
C) $5,200 U
D) $4,100 F
420) Moncrief Corporation bases its budgets on machine-hours. The company’s static planning
budget for July appears below:
Budgeted number of machine-hours 1,000
Supplies (@ $8.60 per machine-hour) $ 8,600
Power (@ $8.80 per machine-hour) 8,800
Salaries 11,300
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Equipment depreciation 9,900
Total $ 38,600
Actual results for the month were:
Actual number of machine-hours 1,200
Supplies $ 10,290
Power $ 10,860
Salaries $ 11,690
Equipment depreciation $ 9,990
The spending variance for supplies costs in the flexible budget performance report for the month
should be:
A) $30 F
B) $1,690 F
C) $1,690 U
D) $30 U
421) Moncrief Corporation bases its budgets on machine-hours. The company’s static planning
budget for July appears below:
Budgeted number of machine-hours 1,000
Supplies (@ $8.60 per machine-hour) $ 8,600
Power (@ $8.80 per machine-hour) 8,800
Salaries 11,300
Equipment depreciation 9,900
Total $ 38,600
Actual results for the month were:
Actual number of machine-hours 1,200
Supplies $ 10,290
Power $ 10,860
Salaries $ 11,690
Equipment depreciation $ 9,990
The spending variance for power costs in the flexible budget performance report for the month
should be:
A) $2,060 F
B) $2,060 U
C) $300 F
D) $300 U
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422) Moncrief Corporation bases its budgets on machine-hours. The company’s static planning
budget for July appears below:
Budgeted number of machine-hours 1,000
Supplies (@ $8.60 per machine-hour) $ 8,600
Power (@ $8.80 per machine-hour) 8,800
Salaries 11,300
Equipment depreciation 9,900
Total $ 38,600
Actual results for the month were:
Actual number of machine-hours 1,200
Supplies $ 10,290
Power $ 10,860
Salaries $ 11,690
Equipment depreciation $ 9,990
The spending variance for equipment depreciation in the flexible budget performance report for
the month should be:
A) $1,890 U
B) $90 F
C) $90 U
D) $1,890 F
423) 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 revenue variance in the Revenue and Spending Variances column of a report comparing
actual results to the flexible budget for March would have been closest to:
Version 1 245
A) $21,500 U
B) $2,100 U
C) $21,500 F
D) $2,100 F
424) 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 “Employee salaries and wages” for March would have been closest
to:
A) $3,300 U
B) $3,300 F
C) $300 U
D) $300 F
425) 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
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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 “Refurbishing materials” for March would have been closest to:
A) $1,500 F
B) $500 F
C) $1,500 U
D) $500 U
426) 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 “Other expenses” for March would have been closest to:
A) $500 U
B) $8,844 U
C) $8,844 F
D) $500 F
427) 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.
Version 1 247
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
428) 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
Version 1 248
429) 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
430) 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:
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A) $5,080 F
B) $5,080 U
C) $5,800 U
D) $5,800 F
431) 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
432) 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 0 $ 39.60
Direct labor $ 0 $ 5.50
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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
433) 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 0 $ 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:
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A) $195 U
B) $980 U
C) $980 F
D) $195 F
434) 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 5,140 units, but its actual level of activity was 5,090 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 0 $ 40.00
Direct labor $ 0 $ 5.90
Direct materials 0 16.10
Manufacturing overhead 41,900 1.70
Selling and administrative expenses 23,100 .60
Total expenses $ 65,000 $ 24.30
Actual results for May:
Revenue $ 198,210
Direct labor $ 28,965
Direct materials $ 80,665
Manufacturing overhead $ 49,905
Selling and administrative expenses $ 23,080
The spending variance for manufacturing overhead in May would be closest to:
A) $648 U
B) $733 U
C) $733 F
D) $648 F
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435) 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 0 $ 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
436) 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 0 $ 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:
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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
437) 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
438) 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
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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
439) 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
Version 1 255
440) 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
441) 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
Version 1 256
442) 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
443) 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
Version 1 257
444) 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
445) 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
Version 1 258
446) Dinham 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 March, the kennel budgeted for 4,500
tenant-days, but its actual level of activity was 4,560 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for March:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue 0 $ 35.00
Wages and salaries $ 3,400 $ 8.40
Food and supplies 2,400 14.90
Facility expenses 8,900 3.90
Administrative expenses 7,400 0.30
Total expenses $ 22,100 $ 27.50
Actual results for March:
Revenue $ 142,130
Wages and salaries $ 28,640
Food and supplies $ 71,025
Facility expenses $ 26,125
Administrative expenses $ 7,104
The revenue variance for March would be closest to:
A) $15,370 U
B) $17,470 U
C) $17,470 F
D) $15,370 F
447) Dinham 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 March, the kennel budgeted for 2,000
tenant-days, but its actual level of activity was 2,040 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for March:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue 0 $ 35.40
Wages and salaries $ 3,000 $ 6.60
Food and supplies 400 12.20
Facility expenses 9,600 2.30
Administrative expenses 7,800 0.20
Total expenses $ 20,800 $ 21.30
Actual results for March:
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Revenue $ 69,576
Wages and salaries $ 16,204
Food and supplies $ 25,008
Facility expenses $ 14,122
Administrative expenses $ 8,238
The revenue variance for March would be closest to:
A) $2,640 U
B) $2,640 F
C) $1,224 U
D) $1,224 F
448) Dinham 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 March, the kennel budgeted for 4,000
tenant-days, but its actual level of activity was 4,040 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for March:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue 0 $ 34.90
Wages and salaries $ 2,900 $ 7.90
Food and supplies 1,900 14.40
Facility expenses 8,400 3.40
Administrative expenses 6,900 0.40
Total expenses $ 20,100 $ 26.10
Actual results for March:
Revenue $ 131,231
Wages and salaries $ 28,590
Food and supplies $ 60,575
Facility expenses $ 21,800
Administrative expenses $ 7,099
The spending variance for food and supplies in March would be closest to:
A) $1,075 F
B) $1,075 U
C) $499 F
D) $499 U
Version 1 260
449) Dinham 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 March, the kennel budgeted for 2,000
tenant-days, but its actual level of activity was 2,040 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for March:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue 0 $ 35.40
Wages and salaries $ 3,000 $ 6.60
Food and supplies 400 12.20
Facility expenses 9,600 2.30
Administrative expenses 7,800 0.20
Total expenses $ 20,800 $ 21.30
Actual results for March:
Revenue $ 69,576
Wages and salaries $ 16,204
Food and supplies $ 25,008
Facility expenses $ 14,122
Administrative expenses $ 8,238
The spending variance for food and supplies in March would be closest to:
A) $208 F
B) $280 U
C) $208 U
D) $280 F
450) Dinham 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 March, the kennel budgeted for 4,800
tenant-days, but its actual level of activity was 4,820 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for March:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue 0 $ 35.30
Wages and salaries $ 2,000 $ 8.70
Food and supplies 1,200 15.20
Facility expenses 7,600 4.20
Administrative expenses 7,700 0.60
Total expenses $ 18,500 $ 28.70
Actual results for March:
Revenue $ 145,135
Wages and salaries $ 28,670
Version 1 261
Food and supplies $ 75,065
Facility expenses $ 27,230
Administrative expenses $ 7,107
The spending variance for facility expenses in March would be closest to:
A) $614 F
B) $530 U
C) $614 U
D) $530 F
451) Dinham 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 March, the kennel budgeted for 2,000
tenant-days, but its actual level of activity was 2,040 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for March:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue 0 $ 35.40
Wages and salaries $ 3,000 $ 6.60
Food and supplies 400 12.20
Facility expenses 9,600 2.30
Administrative expenses 7,800 0.20
Total expenses $ 20,800 $ 21.30
Actual results for March:
Revenue $ 69,576
Wages and salaries $ 16,204
Food and supplies $ 25,008
Facility expenses $ 14,122
Administrative expenses $ 8,238
The spending variance for facility expenses in March would be closest to:
A) $78 F
B) $170 U
C) $78 U
D) $170 F
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452) Dinham 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 March, the kennel budgeted for 3,500
tenant-days, but its actual level of activity was 3,550 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for March:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue 0 $ 34.40
Wages and salaries $ 2,400 $ 7.40
Food and supplies 1,400 13.90
Facility expenses 7,900 2.90
Administrative expenses 6,400 0.50
Total expenses $ 18,100 $ 24.70
Actual results for March:
Revenue $ 119,125
Wages and salaries $ 28,540
Food and supplies $ 51,125
Facility expenses $ 17,250
Administrative expenses $ 7,094
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 March
would be closest to:
A) $734 F
B) $1,219 F
C) $734 U
D) $1,219 U
453) Dinham 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 March, the kennel budgeted for 2,000
tenant-days, but its actual level of activity was 2,040 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for March:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue 0 $ 35.40
Wages and salaries $ 3,000 $ 6.60
Food and supplies 400 12.20
Facility expenses 9,600 2.30
Administrative expenses 7,800 0.20
Total expenses $ 20,800 $ 21.30
Actual results for March:
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Revenue $ 69,576
Wages and salaries $ 16,204
Food and supplies $ 25,008
Facility expenses $ 14,122
Administrative expenses $ 8,238
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 March
would be closest to:
A) $1,960 F
B) $1,960 U
C) $1,396 U
D) $1,396 F
454) Bracken Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 2,100 client-visits, but its actual level of activity was 2,140 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for September:
Data used in budgeting:
Fixed element per month Variable element per client-visit
Revenue $ 44.50
Personnel expenses $ 26,100 $ 12.60
Medical supplies 600 7.20
Occupancy expenses 6,500 2.40
Administrative expenses 3,100 0.10
Total expenses $ 36,300 $ 22.30
Actual results for September:
Revenue $ 93,240
Personnel expenses $ 50,754
Medical supplies $ 15,328
Occupancy expenses $ 11,646
Administrative expenses $ 3,394
The revenue variance for September would be closest to:
A) $210 U
B) $1,990 F
C) $1,990 U
D) $210 F
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455) Bracken Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 2,100 client-visits, but its actual level of activity was 2,140 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for September:
Data used in budgeting:
Fixed element per month Variable element per client-visit
Revenue $ 44.50
Personnel expenses $ 26,100 $ 12.60
Medical supplies 600 7.20
Occupancy expenses 6,500 2.40
Administrative expenses 3,100 0.10
Total expenses $ 36,300 $ 22.30
Actual results for September:
Revenue $ 93,240
Personnel expenses $ 50,754
Medical supplies $ 15,328
Occupancy expenses $ 11,646
Administrative expenses $ 3,394
The spending variance for medical supplies in September would be closest to:
A) $392 F
B) $680 U
C) $680 F
D) $392 U
456) Bracken Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 2,100 client-visits, but its actual level of activity was 2,140 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for September:
Data used in budgeting:
Fixed element per month Variable element per client-visit
Revenue $ 44.50
Personnel expenses $ 26,100 $ 12.60
Medical supplies 600 7.20
Occupancy expenses 6,500 2.40
Administrative expenses 3,100 0.10
Total expenses $ 36,300 $ 22.30
Actual results for September:
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Revenue $ 93,240
Personnel expenses $ 50,754
Medical supplies $ 15,328
Occupancy expenses $ 11,646
Administrative expenses $ 3,394
The spending variance for occupancy expenses in September would be closest to:
A) $10 F
B) $106 F
C) $10 U
D) $106 U
457) Bracken Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 2,100 client-visits, but its actual level of activity was 2,140 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for September:
Data used in budgeting:
Fixed element per month Variable element per client-visit
Revenue $ 44.50
Personnel expenses $ 26,100 $ 12.60
Medical supplies 600 7.20
Occupancy expenses 6,500 2.40
Administrative expenses 3,100 0.10
Total expenses $ 36,300 $ 22.30
Actual results for September:
Revenue $ 93,240
Personnel expenses $ 50,754
Medical supplies $ 15,328
Occupancy expenses $ 11,646
Administrative expenses $ 3,394
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:
A) $1,798 U
B) $1,798 F
C) $910 U
D) $910 F
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458) Teel 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
$8,850 per month plus $400 per press run plus $950 per book set-up. The company expected its
activity in July to be 204 press runs and 111 book set-ups, but the actual activity was 201 press
runs and 110 book set-ups. The actual cost for wages and salaries in July was $193,780.
The wages and salaries in the planning budget for July would be closest to:
A) $193,750
B) $196,672
C) $195,900
D) $193,780
459) Teel 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
$8,850 per month plus $400 per press run plus $950 per book set-up. The company expected its
activity in July to be 204 press runs and 111 book set-ups, but the actual activity was 201 press
runs and 110 book set-ups. The actual cost for wages and salaries in July was $193,780.
The wages and salaries in the flexible budget for July would be closest to:
A) $193,019
B) $195,900
C) $193,780
D) $193,750
460) Teel 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
$8,850 per month plus $400 per press run plus $950 per book set-up. The company expected its
activity in July to be 204 press runs and 111 book set-ups, but the actual activity was 201 press
runs and 110 book set-ups. The actual cost for wages and salaries in July was $193,780.
The activity variance for wages and salaries in July would be closest to:
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A) $2,150 F
B) $2,120 F
C) $2,150 U
D) $2,120 U
461) Teel 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
$6,350 per month plus $405 per press run plus $955 per book set-up. The company expected its
activity in July to be 209 press runs and 116 book set-ups, but the actual activity was 206 press
runs and 115 book set-ups. The actual cost for wages and salaries in July was $199,780.
The spending variance for wages and salaries in July would be closest to:
A) $175 U
B) $1,995 F
C) $175 F
D) $1,995 U
462) Teel 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
$8,850 per month plus $400 per press run plus $950 per book set-up. The company expected its
activity in July to be 204 press runs and 111 book set-ups, but the actual activity was 201 press
runs and 110 book set-ups. The actual cost for wages and salaries in July was $193,780.
The spending variance for wages and salaries in July would be closest to:
A) $30 U
B) $2,120 F
C) $30 F
D) $2,120 U
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463) Standahl 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 $41,190 per
month plus $2,809 per flight plus $20 per passenger. The company expected its activity in
August to be 98 flights and 310 passengers, but the actual activity was 101 flights and 313
passengers. The actual cost for plane operating costs in August was $263,690.
The plane operating costs in the planning budget for August would be closest to:
A) $263,690
B) $322,672
C) $331,159
D) $311,354
464) Standahl 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 $39,590 per
month plus $2,649 per flight plus $4 per passenger. The company expected its activity in August
to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers.
The actual cost for plane operating costs in August was $255,690.
The plane operating costs in the planning budget for August would be closest to:
A) $255,690
B) $257,984
C) $265,943
D) $246,666
465) Standahl 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 $39,590 per
month plus $2,649 per flight plus $4 per passenger. The company expected its activity in August
to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers.
The actual cost for plane operating costs in August was $255,690.
The plane operating costs in the flexible budget for August would be closest to:
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A) $265,943
B) $255,690
C) $267,422
D) $257,984
466) Standahl 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 $39,590 per
month plus $2,649 per flight plus $4 per passenger. The company expected its activity in August
to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers.
The actual cost for plane operating costs in August was $255,690.
The activity variance for plane operating costs in August would be closest to:
A) $2,294 F
B) $7,959 U
C) $7,959 F
D) $2,294 U
467) Standahl 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 $39,590 per
month plus $2,649 per flight plus $4 per passenger. The company expected its activity in August
to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers.
The actual cost for plane operating costs in August was $255,690.
The spending variance for plane operating costs in August would be closest to:
A) $2,294 U
B) $10,253 U
C) $2,294 F
D) $10,253 F
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468) If activity is higher than expected, total fixed costs should be higher than expected. If
activity is lower than expected, total fixed costs should be lower than expected.
⊚ true
⊚ false
469) Comparing a static planning budget to actual costs is not a good way to assess whether
variable costs are under control.
⊚ true
⊚ false
470) In a flexible budget, when the activity declines, the total variable cost also declines.
⊚ true
⊚ false
471) The main difference between a flexible budget and a static budget is that the static budget
is not adjusted for changes in the level of activity.
⊚ true
⊚ false
472) To help assess how well a manager has controlled costs, actual costs should be compared
to what the costs should have been for the actual level of activity.
⊚ true
⊚ false
473) Fixed costs should usually be included in performance reports because fixed costs are
generally controllable.
⊚ true
⊚ false
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474) Using a flexible budget, actual results can be compared to what costs should have been at
the actual level of activity.
⊚ true
⊚ false
475) Fixed costs should not be included in a flexible budget because they do not change when
the level of activity changes.
⊚ true
⊚ false
476) Actual costs are determined by plugging the actual level of activity for the period into the
cost formulas used in flexible budgets.
⊚ true
⊚ false
477) Fixed costs should not be ignored when evaluating how well a manager has controlled
costs.
⊚ true
⊚ false
478) Differences between the static planning budget and the flexible budget show what should
have happened because the actual level of activity differed from what had been planned.
⊚ true
⊚ false
479) An unfavorable activity variance for revenue indicates that activity was less than
expected when the static planning budget was developed.
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⊚ true
⊚ false
480) The activity variance for revenue is favorable if the revenue in the flexible budget
exceeds the revenue in the static planning budget.
⊚ true
⊚ false
481) The activity variance for revenue is favorable if the actual revenue for the period exceeds
the revenue in the static planning budget.
⊚ true
⊚ false
482) An activity variance is the difference between an actual revenue or cost and the revenue
or cost in the flexible budget that is adjusted for the actual level of activity of the period.
⊚ true
⊚ false
483) A spending variance is the difference between the amount of the cost in the static
planning budget and the amount of the cost in the flexible budget.
⊚ true
⊚ false
484) A revenue variance is the difference between what the total sales revenue should be,
given the actual level of activity of the period, and the actual total sales revenue.
⊚ true
⊚ false
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485) A revenue variance is unfavorable if the revenue in the static planning budget is less than
the revenue in the flexible budget.
⊚ true
⊚ false
486) When the activity measure is the number of units sold, the revenue variance is favorable
if the average actual selling price is greater than expected.
⊚ true
⊚ false
487) A favorable spending variance occurs when the actual cost is less than the amount of the
cost in the static planning budget.
⊚ true
⊚ false
488) A revenue variance is favorable if the actual revenue is greater than the revenue in the
static planning budget.
⊚ true
⊚ false
489) A flexible budget report should exclude variable costs because they can be expected to
change with a change in the level of activity.
⊚ true
⊚ false
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490) A flexible budget performance report contains activity variances but not revenue or
spending variances.
⊚ true
⊚ false
491) Flexible budgets can be used when there is more than one cost driver (i.e., measure of
activity).
⊚ true
⊚ false
492) A flexible budget performance report with more than one cost driver will always have
more unfavorable revenue and spending variances than a performance report with only one cost
driver.
⊚ true
⊚ false
493) A flexible budget performance report with more than one cost driver can contain activity
variances but not revenue or spending variances due to the increased complexity.
⊚ true
⊚ false
494) Performance reports with more than one cost driver typically have more accurate
variances than those based on one cost driver.
⊚ true
⊚ false
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Answer Key
Test name: chapter 9
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