Exam 11: Flexible Budgets and Performance Analysis

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

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

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

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

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

Farver 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 $44,420 per month plus $2,008 per flight plus $1 per passenger. The company expected its activity in May to be 80 flights and 281 passengers, but the actual activity was 81 flights and 277 passengers. The actual cost for plane operating costs in May was $199,650. The spending variance for plane operating costs in May would be closest to:

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:

Hamner Corporation's flexible budget performance report for last month shows that actual indirect materials cost, a variable cost, was $45,240 and that the spending variance for indirect materials cost was $3,480 unfavorable. During that month, the company worked 17,400 machine-hours. Budgeted activity for the month had been 17,000 machine-hours. The cost formula per machine-hour for indirect materials cost must have been closest to:

During August, Cardenas Clinic budgeted for 3,900 patient-visits, but its actual level of activity was 3,800 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits: Revenue: $27.80q Personnel expenses: $25,100 + $7.80q Medical supplies: $1,100 + $5.60q Occupancy expenses: $7,900 + $1.20q Administrative expenses: $3,200 + $0.10q Required: Prepare the clinic's flexible budget for August based on the actual level of activity for the month.

Clines Corporation bases its budgets on machine-hours. The company's static planning budget for November appears below: Required: Prepare a flexible budget for 9,800 machine-hours per month.

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 December would be closest to:

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

The activity variance for wages and salaries in October would be closest to:

The spending variance for expendables in September would be closest to:

The occupancy expenses in the flexible budget for February would be closest to:

The activity variance for net operating income in June would be closest to:

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

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

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

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