Exam 11: Flexible Budgets and Performance Analysis

The direct labor in the planning budget for July would be closest to:

The medical supplies in the flexible budget for February would be closest to:

During May, Hiles Corporation budgeted for 31,000 customers, but actually served 29,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.40q Wages and salaries: $35,800 + $1.70q Supplies: $0.60q Insurance: $12,300 Miscellaneous: $5,500 + $0.10q Required: Prepare the company's flexible budget for May based on the actual level of activity for the month.

The net operating income in the planning budget for July would be closest to:

The facility expenses in the flexible budget for November would be closest to:

Nield 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: In July, the company budgeted for 430 guests and 210 jeeps. The actual activity for the month was 415 guests and 205 jeeps. Required: Prepare a report showing the company's activity variances for July. Label each variance as favorable (F) or unfavorable (U).

The materials and supplies in the flexible budget for November would be closest to:

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

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

The spending variance for equipment depreciation in the flexible budget performance report for the month should be:

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

The spending variance for direct materials in October would be closest to:

Zuehlke Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for September was based on 2,800 meals, but the diner actually served 3,000 meals. The diner's director has provided the following cost data to use in the budget: groceries, $3.85 per meal; kitchen operations, $4,500 per month plus $1.65 per meal; administrative expenses, $3,300 per month plus $0.30 per meal; and fundraising expenses, $1,200 per month. The director has also provided the diner's statement of actual expenses for the month: Required: Prepare a report showing the activity variances for each of the expenses and for total expenses for September.

The spending variance for laundry costs in the flexible budget performance report for the month is:

The activity variance for administrative expenses in September would be closest to:

Directly comparing static budget costs to actual costs only makes sense if the costs are fixed.

The spending variance for medical supplies in December would be closest to:

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

Stuchlik 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 $430 per month plus $80 per job plus $14 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 January to be 20 jobs and 190 meals, but the actual activity was 21 jobs and 194 meals. The actual cost for catering supplies in January was $4,850. The catering supplies in the planning budget for January would be closest to:

The spending variance for selling and administrative expense in April would be closest to: