Exam 11: Flexible Budgets and Performance Analysis

Seard Clinic uses patient-visits as its measure of activity. The clinic has provided the following report: Required: Prepare the clinic's flexible budget performance report for December. Label each variance as favorable (F) or unfavorable (U).

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

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

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

The activity variance for revenue is favorable if the actual level of activity for the period exceeds the planned level of activity.

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

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

Soehl Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of activity was 14,100 skeins and the actual level of activity was 13,700 skeins. The company's owner budgets for dye costs, a variable cost, at $0.40 per skein. The actual dye cost last month was $4,510. In the company's flexible budget performance report for last month, what would have been the spending variance for dye costs?

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

The total fixed cost at the activity level of 9,300 patient-visits per month should be:

The activity variance for selling and administrative expenses in April would be closest to:

Velazques 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 March, the company budgeted for 356 guests and 129 jeeps. The company's income statement showing the actual results for the month appears below: Required: Prepare a report showing the company's activity variances for March. Label each variance as favorable (F) or unfavorable (U).

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

Tervo 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 March, the company budgeted for 492 guests and 165 jeeps. The company's income statement showing the actual results for the month appears below: Required: Prepare a flexible budget performance report showing both the company's activity variances and revenue and spending variances for March. Label each variance as favorable (F) or unfavorable (U).

While fixed costs should not be affected by a change in the level of activity within the relevant range, they may change for other reasons.

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

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

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

Newsom Footwear Corporation's flexible budget cost formula for supplies, a variable cost, is $2.61 per unit of output. The company's flexible budget performance report for last month showed a $6,840 unfavorable spending variance for supplies. During that month, 17,100 units were produced. Budgeted activity for the month had been 16,700 units. The actual cost per unit for indirect materials must have been closest to:

The plane operating costs in the flexible budget for January would be closest to: