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Reference: 8-16
Pong 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
2,000 tenant-days, but its actual level of activity was 1,980 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for December:
Data used in budgeting:
Actual results for December:
The facility expenses in the flexible budget for December would be closest to:
A) $14,640
B) $14,187
C) $14,475
D) $14,700
Answer:
A manufacturing company that produces a single product has provided the following
data concerning its most recent month of operations:
What is the variable costing unit product cost for the month?
A. $103
B. $99
C. $94
D. $90
Answer:
Paxton Corp has provided the following data concerning its operations last month:
Paxton Corp is a retailing organization.
The break-even sales in dollars is (round to the nearest dollar):
A. $148,148
B. $266,667
C. $333,333
D. $350,000
Answer:
The following standards for variable overhead have been established for a company that
makes only one product:
The following data pertain to operations for the last month:
Required:
a. What is the variable overhead rate variance for the month?
b. What is the variable overhead efficiency variance for the month?
Answer:
Compound Y23Z is used by Mcfadin Corporation to make one of its products. The
standard cost of compound Y23Z is $38.70 per ounce and the standard quantity is 4.6
per unit of output. Data concerning the compound in the most recent month appear
below:
The raw material was purchased on account.
Required:
a. Record the purchase of the raw material in a journal entry.
b. Record the use of the raw material in production in a journal entry.
Answer:
The Kafusi Company has the following budgeted sales:
The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the
month following the month of sale, and the remainder in the second month following
the month of sale. There are no bad debts.
The budgeted accounts receivable balance on May 31 would be:
A. $210,000
B. $212,000
C. $180,000
D. $242,000
Answer:
