Question 1

The selling and administrative expenses in the planning budget for February would be closest to:

Accepted Answer

A) $28,656 
B) $28,818 
C) $28,436 
D) $28,460 
A) $28,656 
B) $28,818 
C) $28,436 
D) $28,460

Question 2

Voytek Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 36,000 customers, but actually served 34,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:   Required:
Prepare a report showing the company's activity variances for October. Indicate in each case whether the variance is favorable (F) or unfavorable (U).

Accepted Answer

The answer of Voytek Corporation bases its budgets on the...

Question 3

Turnner 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 April, the company budgeted for 374 guests and 166 jeeps. The actual activity for the month was 364 guests and 167 jeeps.
Required:
Prepare the company's planning budget for April.

Accepted Answer

The answer of Turnner Jeep Tours operates jeep tours in...

Question 4

Fudala Snow Removal's cost formula for its vehicle operating cost is $1,480 per month plus $308 per snow-day. For the month of March, the company planned for activity of 11 snow-days, but the actual level of activity was 16 snow-days. The actual vehicle operating cost for the month was $6,130. The spending variance for vehicle operating cost in March would be closest to:

Accepted Answer

A) $1,262 U 
B) $278 F 
C) $278 U 
D) $1,262 F 
A) $1,262 U 
B) $278 F 
C) $278 U 
D) $1,262 F

Question 5

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

Accepted Answer

A) $5,720 F 
B) $170 U 
C) $170 F 
D) $5,720 U 
A) $5,720 F 
B) $170 U 
C) $170 F 
D) $5,720 U

Question 6

Aubuchon Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for March was based on 3,400 meals, but the diner actually served 3,100 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.90 per meal; kitchen operations, $4,900 per month plus $1.05 per meal; administrative expenses, $3,600 per month plus $0.25 per meal; and fundraising expenses, $1,700 per month.
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses for March. Label each variance as favorable (F) or unfavorable (U).

Accepted Answer

The answer of Aubuchon Urban Diner is a charity supported...

Question 7

The activity variance for plane operating costs in January would be closest to:

Accepted Answer

A) $5,274 F 
B) $4,363 U 
C) $4,363 F 
D) $5,274 U 
A) $5,274 F 
B) $4,363 U 
C) $4,363 F 
D) $5,274 U

Question 8

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

Accepted Answer

A) $14,510 
B) $15,370 
C) $15,147 
D) $15,515 
A) $14,510 
B) $15,370 
C) $15,147 
D) $15,515

Question 9

The administrative expenses in the planning budget for February would be closest to:

Accepted Answer

A) $4,970 
B) $4,861 
C) $4,914 
D) $4,974 
A) $4,970 
B) $4,861 
C) $4,914 
D) $4,974

Question 10

The wages and salaries in the flexible budget for January would be closest to:

Accepted Answer

A) $259,290 
B) $269,270 
C) $263,428 
D) $257,910 
A) $259,290 
B) $269,270 
C) $263,428 
D) $257,910

Question 11

A flexible budget performance report contains both activity variances and revenue and spending variances.

Accepted Answer

A) True 
 B)False

Question 12

The administrative expenses in the planning budget for October would be closest to:

Accepted Answer

A) $7,484 
B) $7,284 
C) $7,585 
D) $7,300 
A) $7,484 
B) $7,284 
C) $7,585 
D) $7,300

Question 13

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

Accepted Answer

A) $16,930 
B) $17,350 
C) $16,885 
D) $16,695 
A) $16,930 
B) $17,350 
C) $16,885 
D) $16,695

Question 14

The total variable cost at the activity level of 3,200 guest-days per month should be:

Accepted Answer

A) $40,960 
B) $49,280 
C) $29,440 
D) $35,420 
A) $40,960 
B) $49,280 
C) $29,440 
D) $35,420

Question 15

If the actual level of activity is 4% more than planned, then the variable costs in the static budget should be increased by 4% before comparing them to actual costs.

Accepted Answer

A) True 
 B)False

Question 16

During August, Diga Corporation plans to serve 35,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue: $4.20q
Wages and salaries: $33,700 + $1.50q
Supplies: $0.70q
Insurance: $11,000
Miscellaneous: $4,800 + $0.40q
Required:
Prepare the company's planning budget for August.

Accepted Answer

The answer of During August, Diga Corporation plans to serve...

Question 17

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 September would be closest to:

Accepted Answer

A) $3,200 F 
B) $3,470 F 
C) $3,200 U 
D) $3,470 U 
A) $3,200 F 
B) $3,470 F 
C) $3,200 U 
D) $3,470 U

Question 18

The administrative expenses in the planning budget for June would be closest to:

Accepted Answer

A) $7,881 
B) $7,850 
C) $8,151 
D) $8,150 
A) $7,881 
B) $7,850 
C) $8,151 
D) $8,150

Question 19

Onofre 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 October, the school budgeted for 1,410 students and 58 courses. The actual activity for the month was 1,310 students and 62 courses.
Required:
Prepare the school's flexible budget for the actual level of activity in October.

Accepted Answer

The answer of Onofre Tech is a for-profit vocational school....

Question 20

A revenue variance is favorable if the revenue in the static planning budget exceeds the revenue in the flexible budget.

Accepted Answer

A) True 
 B)False

The selling and administrative expenses in the planning budget for February would be closest to:

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

The activity variance for plane operating costs in January would be closest to:

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

The administrative expenses in the planning budget for February would be closest to:

The wages and salaries in the flexible budget for January would be closest to:

A flexible budget performance report contains both activity variances and revenue and spending variances.

The administrative expenses in the planning budget for October would be closest to:

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

The total variable cost at the activity level of 3,200 guest-days per month should be:

If the actual level of activity is 4% more than planned, then the variable costs in the static budget should be increased by 4% before comparing them to actual costs.

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 September would be closest to:

The administrative expenses in the planning budget for June would be closest to:

A revenue variance is favorable if the revenue in the static planning budget exceeds the revenue in the flexible budget.

Managerial Accounting and Cost Concepts

Cost-Volume-Profit Relationships

Job-Order Costing

Variable Costing and Segment Reporting: Tools for Management

Activity-Based-Costing: a Tool to Aid Decision Making

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Capital Budgeting Decisions

Profit Planning

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based-Costing: a Tool to Aid Decision Making

A Capital Budgeting Decisions

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Performance Measurement in Decentralized Organizations

Profitability Analysis

Pricing Products and Services

Filters

Exam 11: Flexible Budgets and Performance Analysis

The selling and administrative expenses in the planning budget for February would be closest to:

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

The activity variance for plane operating costs in January would be closest to:

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

The administrative expenses in the planning budget for February would be closest to:

The wages and salaries in the flexible budget for January would be closest to:

A flexible budget performance report contains both activity variances and revenue and spending variances.

The administrative expenses in the planning budget for October would be closest to:

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

The total variable cost at the activity level of 3,200 guest-days per month should be:

If the actual level of activity is 4% more than planned, then the variable costs in the static budget should be increased by 4% before comparing them to actual costs.

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 September would be closest to:

The administrative expenses in the planning budget for June would be closest to:

A revenue variance is favorable if the revenue in the static planning budget exceeds the revenue in the flexible budget.

Managerial Accounting and Cost Concepts

Cost-Volume-Profit Relationships

Job-Order Costing

Variable Costing and Segment Reporting: Tools for Management

Activity-Based-Costing: a Tool to Aid Decision Making

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Capital Budgeting Decisions

Profit Planning

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based-Costing: a Tool to Aid Decision Making

A Capital Budgeting Decisions

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Performance Measurement in Decentralized Organizations

Profitability Analysis

Pricing Products and Services

Filters