Exam 9: Flexible Budgets and Performance Analysis

Baugus Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During August,the company budgeted for 6,900 units,but its actual level of activity was 6,950 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for August: -The activity variance for direct labor in August would be closest to:

Lampert Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During March,the company budgeted for 6,100 units,but its actual level of activity was 6,060 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for March: -The activity variance for selling and administrative expenses in March would be closest to:

Woofter 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 7,600 units,but its actual level of activity was 7,560 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for January: -The activity variance for net operating income in January would be closest to:

Reuer Midwifery's cost formula for its wages and salaries is $2,900 per month plus $475 per birth.For the month of March,the company planned for activity of 116 births,but the actual level of activity was 117 births.The actual wages and salaries for the month was $56,270.The activity variance for wages and salaries in March would be closest to:

Vandall Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During April,the company budgeted for 7,300 units,but its actual level of activity was 7,340 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for April: -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 April would be closest to:

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

Gramling Clinic bases its budgets on patient-visits.During July,the clinic plans for a level of activity of 2,500 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 July.

Poulsen 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 7,270 units.The company has provided the following data concerning the formulas to be used in its budgeting: -The direct materials in the flexible budget for July would be closest to:

Moorhouse 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 3,690 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: -The spending variance for medical supplies in December would be closest to:

Tosta 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 May,the kennel budgeted for 2,100 tenant-days,but its actual level of activity was 2,050 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May: -The net operating income in the flexible budget for May would be closest to:

A planning budget is prepared before the period begins and is valid for only the planned level of activity.

Stent 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 February,the kennel budgeted for 3,000 tenant-days,but its actual level of activity was 2,950 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: -The activity variance for administrative expenses in February would be closest to:

Kuczenski Corporation's cost formula for its manufacturing overhead is $45,700 per month plus $53 per machine-hour.For the month of March,the company planned for activity of 6,200 machine-hours,but the actual level of activity was 6,150 machine-hours.The actual manufacturing overhead for the month was $373,630. -The manufacturing overhead in the planning budget for March would be closest to:

Lauser Clinic uses client-visits as its measure of activity.During July,the clinic budgeted for 3,700 client-visits,but its actual level of activity was 3,690 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July: -The net operating income in the flexible budget for July would be closest to:

Deleston Boat Wash's cost formula for its cleaning equipment and supplies is $2,150 per month plus $21 per boat.For the month of September,the company planned for activity of 79 boats,but the actual level of activity was 39 boats.The actual cleaning equipment and supplies for the month was $3,110. -The spending variance for cleaning equipment and supplies in September would be closest to:

Alarie 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 November,the school budgeted for 1,420 students and 139 courses.The actual activity for the month was 1,220 students and 142 courses. Required: Prepare a report showing the school's activity variances for November.Label each variance as favorable (F) or unfavorable (U).

Werber Clinic uses client-visits as its measure of activity.During January,the clinic budgeted for 2,700 client-visits,but its actual level of activity was 2,730 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: -The activity variance for administrative expenses in January would be closest to:

Drobot 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 November,the school budgeted for 1,470 students and 126 courses.The actual activity for the month was 1,770 students and 122 courses. Required: Prepare the school's planning budget for November.

Rising Framing's cost formula for its supplies cost is $2,210 per month plus $10 per frame.For the month of January,the company planned for activity of 710 frames,but the actual level of activity was 705 frames.The actual supplies cost for the month was $9,500.The supplies cost in the flexible budget for January would be closest to:

Feiner Clinic uses client-visits as its measure of activity.During December,the clinic budgeted for 2,200 client-visits,but its actual level of activity was 2,220 client-visits.The clinic has provided the following data concerning the formulas to be used in its budgeting: -The activity variance for personnel expenses in December would be closest to: