Exam 9: Flexible Budgets Standard Costs and Variance Analysis

Elliott Corporation makes and sells a single product.Last period the company's labor rate variance was $14,400 U.During the period, the company worked 36,000 actual direct labor-hours at an actual cost of $338,400.The standard labor rate for the product in dollars per hour is:

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. 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:

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. 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:

The materials price variance is:

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: Required: Prepare the company's planning budget for July.

The standards for product G78V specify 4.1 direct labor-hours per unit at $12.10 per direct labor-hour.Last month 1,600 units of product G78V were produced using 6,600 direct labor-hours at a total direct labor wage cost of $77,220. Required: a.What was the labor rate variance for the month? b.What was the labor efficiency variance for the month?

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.

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

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:

Sharifi Hospital bases its budgets on patient-visits.The hospital's static budget for October appears below: The total overhead cost at an activity level of 9,200 patient-visits per month should be:

The amount shown for "Employee salaries and wages" in the planning budget for November would have been closest to:

The revenue variance for September would be closest to:

The variable overhead rate variance for June is:

The wages and salaries in the planning budget for December would be closest to:

Motts Inc.has a standard cost system in which the standard direct labor for a particular product is 0.50 hours at the standard rate of $21.00 per hour.The company has reported the following actual results for the product for October: Required: a.Compute the labor rate variance for October. b.Compute the labor efficiency variance for October.

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. 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:

The labor efficiency variance for the month is closest to:

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. 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:

The spending variance for food and supplies in March would be closest to:

The labor efficiency variance is: