Exam 8: Flexible Budgets and Performance Analysis

Mouton Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 7,300 units, but its actual level of activity was 7,350 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for July: Data used in budgeting: Actual results for July: -The activity variance for selling and administrative expenses in July would be closest to:

Fullagar Corporation's cost formula for its manufacturing overhead is $15,400 per month plus $11 per machine-hour. For the month of May, the company planned for activity of 7,500 machine-hours, but the actual level of activity was 7,540 machine-hours. The actual manufacturing overhead for the month was $102,710. -The activity variance for manufacturing overhead in May would be closest to:

Burau Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 5,500 units, but its actual level of activity was 5,510 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Actual results for January: -The manufacturing overhead in the flexible budget for January would be closest to:

Lotson Corporation bases its budgets on machine-hours. The company's static planning budget for May appears below: Actual results for the month were: -The spending variance for supplies costs in the flexible budget performance report for the month should be:

Filkins Clinic bases its budgets on the activity measure patient-visits.During February,the clinic planned for 3,900 patient-visits,but the actual level of activity was 4,100 patient-visits.The clinic has provided the following data concerning the formulas it uses in its budgeting: Required: Prepare a report showing the clinic's activity variances for February.Indicate in each case whether the variance is favorable (F)or unfavorable (U).

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:

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?

Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 6,700 units, but its actual level of activity was 6,650 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Actual results for October: -The direct materials in the flexible budget for October would be closest to:

A flexible budget can be used to determine what costs should have been at a given level of activity.

Pong Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During December, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 1,980 tenant-days. The kennel 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: -The wages and salaries in the planning budget for December would be closest to:

Nussey Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,050 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Actual results for May: -The revenue variance for May would be closest to:

Goodfriend Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During June, the kennel budgeted for 2,800 tenant-days, but its actual level of activity was 2,840 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Actual results for June: -The wages and salaries in the planning budget for June 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).

Burau Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 5,500 units, but its actual level of activity was 5,510 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Actual results for January: -The selling and administrative expenses in the planning budget for January would be closest to:

Lizana Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,680 client-visits. The clinic 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: -The net operating income in the flexible budget for December would be closest to: