Exam 9: Flexible Budgets and Performance Analysis

Palczewski Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During December,the company budgeted for 5,000 units,but its actual level of activity was 4,980 units.The company has provided the following data concerning the formulas to be used in its budgeting: -The activity variance for direct labor in December 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 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 January 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 cleaning equipment and supplies in the planning budget for September would be closest to:

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 net operating income in the flexible budget for July 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 revenue variance for April would be closest to:

Buffaloe 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 5,200 units,but its actual level of activity was 5,250 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 selling and administrative expenses in August would be closest to:

Dunklin Medical Clinic measures its activity in terms of patient-visits.Last month,the budgeted level of activity was 1,620 patient-visits and the actual level of activity was 1,540 patient-visits.The cost formula for administrative expenses is $3.20 per patient-visit plus $14,300 per month.The actual administrative expense was $21,050.In the clinic's flexible budget performance report for last month,the spending variance for administrative expenses was:

Lutts 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 November,the kennel budgeted for 3,800 tenant-days,but its actual level of activity was 3,850 tenant-days.The kennel has provided the following data concerning the formulas to be used in its budgeting: -The net operating income in the planning budget for November would be closest to:

Dantuono Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During November,the company budgeted for 7,700 units,but its actual level of activity was 7,720 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for November: -The selling and administrative expenses in the planning budget for November would be closest to:

Hasselman 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 January,the school budgeted for 1,110 students and 105 courses.The actual activity for the month was 1,210 students and 103 courses. Required: Prepare the school's flexible budget for the actual level of activity in January.

Spraque 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 $40,520 per month plus $2,733 per flight plus $11 per passenger.The company expected its activity in June to be 71 flights and 207 passengers,but the actual activity was 70 flights and 205 passengers.The actual cost for plane operating costs in June was $239,580. -The plane operating costs in the flexible budget for June would be closest to:

Gasco Clinic uses patient-visits as its measure of activity.During August,the clinic budgeted for 2,000 patient-visits,but its actual level of activity was 2,100 patient-visits.The clinic uses the following revenue and cost formulas in its budgeting,where q is the number of patient-visits: Revenue: $62.90q Personnel expenses: $28,500 + $20.40q Medical supplies: $1,400 + $9.90q Occupancy expenses: $8,200 + $3.30q Administrative expenses: $4,000 + $0.40q The clinic reported the following actual results for August: Required: Prepare a report showing the clinic's revenue and spending variances for August.Label each variance as favorable (F) or unfavorable (U).

Squillace Corporation uses customers served as its measure of activity.During October,the company budgeted for 38,000 customers,but actually served 35,000 customers.The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Required: Prepare the company's flexible budget performance report for October.Label each variance as favorable (F) or unfavorable (U).

Hausman Hospital bases its budgets on patient-visits.The hospital's static planning budget for October appears below: Required: Prepare a flexible budget for 8,900 patient-visits per month.

A flexible budget performance report should contain fixed as well as variable and mixed costs.

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 spending variance for direct materials in April would be closest to:

Manago 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 5,300 units,but its actual level of activity was 5,310 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 March would be closest to:

Swader 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 March,the kennel budgeted for 2,900 tenant-days,but its actual level of activity was 2,930 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: -The net operating income in the flexible budget for March would be closest to:

Smithson Clinic uses client-visits as its measure of activity.During May,the clinic budgeted for 3,300 client-visits,but its actual level of activity was 3,270 client-visits.The clinic 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:

Legard 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 January,the kennel budgeted for 2,600 tenant-days,but its actual level of activity was 2,620 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January: -The expendables in the flexible budget for January would be closest to: