Exam 9: Flexible Budgets and Performance Analysis

Palamino 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 January,the company budgeted for 330 guests and 143 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 January.Label each variance as favorable (F) or unfavorable (U).

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 selling and administrative expenses in the planning budget for March would be closest to:

If the actual level of activity is 4% more than planned,then the fixed costs in the static budget should be increased by 4% before comparing them to actual costs.

Drabant 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 2,000 tenant-days,but its actual level of activity was 2,040 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:

Drabant 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 2,000 tenant-days,but its actual level of activity was 2,040 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: -The facility expenses in the flexible budget for 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 activity variance for manufacturing overhead in March would be closest to:

Wrape Urban Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for April was based on 2,100 meals.The diner's director has provided the following cost data to use in the budget: groceries,$2.55 per meal;kitchen operations,$4,700 per month plus $1.70 per meal;administrative expenses,$3,300 per month plus $0.60 per meal;and fundraising expenses,$1,000 per month.The director has also provided the diner's statement of actual expenses for the month: Required: Prepare a flexible budget performance report showing both the activity variances and the spending variances for each of the expenses and for total expenses for April.Label each variance as favorable (F) or unfavorable (U).

Drabant 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 2,000 tenant-days,but its actual level of activity was 2,040 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: -The administrative expenses in the planning budget for February would be closest to:

Lantrip 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 January,the company budgeted for 356 guests and 174 jeeps.The actual activity for the month was 341 guests and 177 jeeps. Required: Prepare the company's planning budget for January.

Villella Memorial Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for October was based on 3,800 meals.The diner's director has provided the following cost formulas to use in budgets: The director has also provided the diner's statement of actual expenses for the month: Required: Prepare a report showing the spending variances for each of the expenses and for total expenses for October.Label each variance as favorable (F) or unfavorable (U).

Drabant 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 2,000 tenant-days,but its actual level of activity was 2,040 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: -The spending variance for expendables in February would be closest to:

Genito Corporation's static planning budget for October appears below.The company bases its budgets on machine-hours. In October,the actual number of machine-hours was 8,800,the actual supplies cost was $69,450,the actual power cost was $34,190,the actual salaries cost was $86,490,and the actual equipment depreciation was $37,600. -The spending variance for equipment depreciation in the flexible budget performance report for the month should be:

Novielli Corporation bases its budgets on the activity measure customers served.During November,the company planned to serve 39,000 customers,but actually served 44,000 customers.The company has provided the following data concerning the formulas it uses in its budgeting: Required: Prepare the company's flexible budget for November based on the actual level of activity for the month.

Alto 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 June.Label each variance as favorable (F) or unfavorable (U).

Hoeper Clinic uses client-visits as its measure of activity.During January,the clinic budgeted for 2,600 client-visits,but its actual level of activity was 2,570 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: -The administrative expenses in the planning budget for January would be closest to:

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 direct labor in the planning budget for August 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 manufacturing overhead in the flexible budget for August would be closest to:

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

Rippelmeyer 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 3,600 tenant-days,but its actual level of activity was 3,550 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June: -The administrative expenses in the planning budget for June 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 personnel expenses in the planning budget for December would be closest to: