Exam 9: Flexible Budgets Standard Costs and Variance Analysis

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: 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.

The standard cost card for one unit of a finished product shows the following: If the total standard variable cost for one unit of finished product is $78, then the standard price per foot for direct materials is:

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. 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:

The raw materials quantity variance for the month is closest to:

The variable overhead rate variance for June is:

Actual costs are determined by plugging the actual level of activity for the period into the cost formulas used in flexible budgets.

The labor efficiency variance for the month is closest to:

Amirault Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs)at $4.00 per MH.During the month, the actual total variable manufacturing overhead was $18,040 and the actual level of activity for the period was 4,100 MHs.What was the variable overhead rate variance for the month?

The labor rate variance is:

The net operating income in the flexible budget for June would be closest to:

The food and supplies in the flexible budget for December would be closest to:

The manufacturing overhead in the flexible budget for December would be closest to:

Mongar Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the most recent month appear below: The original budget was based on 4,200 machine-hours.The company actually worked 4,350 machine-hours during the month and the standard hours allowed for the actual output were 4,190 machine-hours.What was the overall variable overhead efficiency variance for the month?

The Haney Corporation has a standard costing system.Variable manufacturing overhead is applied on the basis of direct labor-hours.The following data are available for January: • Actual variable manufacturing overhead: $25,500 • Actual direct labor-hours worked: 5,800 • Variable overhead rate variance: $600 Favorable • Variable overhead efficiency variance: $2,475 Unfavorable The standard hours allowed for January production is:

The spending variance for occupancy costs for the month is:

The "Employee salaries and wages" in the flexible budget for October would have been closest to:

The standard hours allowed for the actual output is closest to:

The variable overhead efficiency variance for July is:

The personnel expenses in the planning budget for January would be closest to:

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: Required: Prepare the clinic's flexible budget for July based on the actual level of activity for the month.