Exam 11: Flexible Budgets and Performance Analysis

Bargas Framing's cost formula for its supplies cost is $2,240 per month plus $6 per frame. For the month of May, the company planned for activity of 808 frames, but the actual level of activity was 810 frames. The actual supplies cost for the month was $7,090. The supplies cost in the flexible budget for May would be closest to:

The spending variance for power costs in the flexible budget performance report for the month should be:

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

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

The activity variance for cleaning equipment and supplies in June would be closest to:

Stock Manufacturing Corporation has prepared the following overhead budget for next month. The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 6,600 machine-hours rather than 6,900 machine-hours?

The total cost at the activity level of 3,300 guest-days per month should be:

Sissac 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 $470 per month plus $101 per job plus $24 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 May to be 12 jobs and 123 meals, but the actual activity was 9 jobs and 126 meals. The actual cost for catering supplies in May was $4,240. The spending variance for catering supplies in May would be closest to:

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

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

The revenue variance for October would be closest to:

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

Mable Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for April was based on 3,000 meals, but the diner actually served 3,100 meals. The diner's director has provided the following cost formulas to use in budgets: Required: Prepare a report showing the activity variances for each of the expenses and for total expenses for April. Label each variance as favorable (F) or unfavorable (U).

The spending variance for supplies costs in the flexible budget performance report for the month should be:

Zylka 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 $47,400 per month plus $2,337 per flight plus $3 per passenger. The company expected its activity in April to be 67 flights and 263 passengers, but the actual activity was 62 flights and 267 passengers. The actual cost for plane operating costs in April was $189,760. The plane operating costs in the planning budget for April would be closest to:

Meares Corporation bases its budgets on the activity measure customers served. During May, the company plans to serve 27,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting: Required: Prepare the company's planning budget for May.

Celius Midwifery's cost formula for its wages and salaries is $2,410 per month plus $292 per birth. For the month of March, the company planned for activity of 113 births, but the actual level of activity was 116 births. The actual wages and salaries for the month was $35,340. The spending variance for wages and salaries in March would be closest to:

Fixed costs should not be included in a performance report because fixed costs are not controllable.

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

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