Question 1

The selling and administrative expense in the planning budget for April would be closest to:

Accepted Answer

A) $357,820 
B) $359,900 
C) $364,490 
D) $366,936 
A) $357,820 
B) $359,900 
C) $364,490 
D) $366,936

Question 2

Gradert Framing's cost formula for its supplies cost is $1,540 per month plus $12 per frame. For the month of September, the company planned for activity of 668 frames, but the actual level of activity was 666 frames. The actual supplies cost for the month was $9,980. The supplies cost in the planning budget for September would be closest to:

Accepted Answer

A) $10,010 
B) $9,532 
C) $9,556 
D) $9,980 
A) $10,010 
B) $9,532 
C) $9,556 
D) $9,980

Question 3

Marchant Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for June was based on 2,200 meals, but the diner actually served 1,800 meals. The diner's director has provided the following cost data to use in the budget: groceries, $3.85 per meal; kitchen operations, $4,300 per month plus $1.70 per meal; administrative expenses, $2,000 per month plus $0.45 per meal; and fundraising expenses, $1,100 per month.
Required:
Prepare the diner's flexible budget for the actual number of meals served in June. The budget will only contain the costs listed above; no revenues will be on the budget.

Accepted Answer

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

Question 4

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

Accepted Answer

A) $1,390 F 
B) $1,930 U 
C) $1,390 U 
D) $1,930 F 
A) $1,390 F 
B) $1,930 U 
C) $1,390 U 
D) $1,930 F

Question 5

Clovis Midwifery's cost formula for its wages and salaries is $2,680 per month plus $245 per birth. For the month of September, the company planned for activity of 118 births, but the actual level of activity was 121 births. The actual wages and salaries for the month was $33,290. The wages and salaries in the flexible budget for September would be closest to:

Accepted Answer

A) $32,393 
B) $31,590 
C) $32,325 
D) $33,290 
A) $32,393 
B) $31,590 
C) $32,325 
D) $33,290

Question 6

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

Accepted Answer

A) $9,980 F 
B) $1,380 U 
C) $1,380 F 
D) $9,980 U 
A) $9,980 F 
B) $1,380 U 
C) $1,380 F 
D) $9,980 U

Question 7

Flexible budgets cannot be used when there is more than one cost driver (i.e., measure of activity).

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) $784 U 
B) $1,120 F 
C) $784 F 
D) $1,120 U 
A) $784 U 
B) $1,120 F 
C) $784 F 
D) $1,120 U

Question 9

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

Accepted Answer

A) $8,220 
B) $8,200 
C) $8,300 
D) $8,098 
A) $8,220 
B) $8,200 
C) $8,300 
D) $8,098

Question 10

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

Accepted Answer

A) $39,040 
B) $39,140 
C) $39,000 
D) $39,722 
A) $39,040 
B) $39,140 
C) $39,000 
D) $39,722

Question 11

Crovo Corporation uses customers served as its measure of activity. During December, the company budgeted for 38,000 customers, but actually served 40,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for December:
Data used in budgeting:   Actual results for December:   Required:
Prepare a report showing the company's revenue and spending variances for December. Label each variance as favorable (F) or unfavorable (U).

Accepted Answer

The answer of Crovo Corporation uses customers served as its...

Question 12

Mish Clinic bases its budgets on patient-visits. During November, the clinic plans for a level of activity of 3,200 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting:   Required:
Prepare the clinic's planning budget for November.

Accepted Answer

The answer of Mish Clinic bases its budgets on patient-visits....

Question 13

Scarfo Hotel bases its budgets on guest-days. The hotel's static budget for December appears below:   The total overhead cost at an activity level of 2,900 guest-days per month should be:

Accepted Answer

A) $20,680 
B) $17,640 
C) $24,360 
D) $20,890 
A) $20,680 
B) $17,640 
C) $24,360 
D) $20,890

Question 14

The spending variance for manufacturing overhead in July would be closest to:

Accepted Answer

A) $780 F 
B) $690 U 
C) $780 U 
D) $690 F 
A) $780 F 
B) $690 U 
C) $780 U 
D) $690 F

Question 15

The spending variance for manufacturing overhead in May would be closest to:

Accepted Answer

A) $4,370 U 
B) $4,810 F 
C) $4,810 U 
D) $4,370 F 
A) $4,370 U 
B) $4,810 F 
C) $4,810 U 
D) $4,370 F

Question 16

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

Accepted Answer

A) $62,946 
B) $67,040 
C) $66,420 
D) $64,070 
A) $62,946 
B) $67,040 
C) $66,420 
D) $64,070

Question 17

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

Accepted Answer

A) $97,900 
B) $98,422 
C) $98,340 
D) $102,710 
A) $97,900 
B) $98,422 
C) $98,340 
D) $102,710

Question 18

Socha Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for January was based on 3,400 meals, but the diner actually served 3,800 meals. The diner's director has provided the following cost formulas to use in budgets:   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 January. Label each variance as favorable (F) or unfavorable (U).

Accepted Answer

The answer of Socha Memorial Diner is a charity supported...

Question 19

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

Accepted Answer

A) $14,460 
B) $14,606 
C) $14,500 
D) $14,390 
A) $14,460 
B) $14,606 
C) $14,500 
D) $14,390

Question 20

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

Accepted Answer

A) $12,898 
B) $13,090 
C) $13,347 
D) $12,940 
A) $12,898 
B) $13,090 
C) $13,347 
D) $12,940

The selling and administrative expense in the planning budget for April would be closest to:

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

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

Flexible budgets cannot be used when there is more than one cost driver (i.e., measure of activity).

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

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

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

Mish Clinic bases its budgets on patient-visits. During November, the clinic plans for a level of activity of 3,200 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting: Required: Prepare the clinic's planning budget for November.

Scarfo Hotel bases its budgets on guest-days. The hotel's static budget for December appears below: The total overhead cost at an activity level of 2,900 guest-days per month should be:

The spending variance for manufacturing overhead in July would be closest to:

The spending variance for manufacturing overhead in May would be closest to:

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

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

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

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

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 expense in the planning budget for April would be closest to:

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

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

Flexible budgets cannot be used when there is more than one cost driver (i.e., measure of activity).

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

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

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

Mish Clinic bases its budgets on patient-visits. During November, the clinic plans for a level of activity of 3,200 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting: Required: Prepare the clinic's planning budget for November.

Scarfo Hotel bases its budgets on guest-days. The hotel's static budget for December appears below: The total overhead cost at an activity level of 2,900 guest-days per month should be:

The spending variance for manufacturing overhead in July would be closest to:

The spending variance for manufacturing overhead in May would be closest to:

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

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

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

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

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