Exam 9: Flexible Budgets and Performance Analysis

Venanzi 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 $40,720 per month plus $2,646 per flight plus $11 per passenger.The company expected its activity in September to be 62 flights and 288 passengers,but the actual activity was 64 flights and 289 passengers.The actual cost for plane operating costs in September was $214,430.The activity variance for plane operating costs in September would be closest to:

Legorreta Corporation uses customers served as its measure of activity.The following report compares the planning budget to the actual operating results for the month of November: Required: Prepare the company's flexible budget performance report for November.Label each variance as favorable (F) or unfavorable (U).

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 wages and salaries in the planning budget for January would be closest to:

Menson 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 5,800 units,but its actual level of activity was 5,830 units.The company has provided the following data concerning the formulas to be used in its budgeting: -The selling and administrative expenses in the planning budget for December 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 manufacturing overhead in the flexible budget for March would be closest to:

Lesinski Snow Removal's cost formula for its vehicle operating cost is $1,770 per month plus $483 per snow-day.For the month of February,the company planned for activity of 19 snow-days,but the actual level of activity was 24 snow-days.The actual vehicle operating cost for the month was $13,070.The spending variance for vehicle operating cost in February would be closest to:

Therrien Corporation bases its budgets on the activity measure customers served.During September,the company plans to serve 30,000 customers.The company has provided the following data concerning the formulas it uses in its budgeting: Required: Prepare the company's planning budget for September.

Harville Midwifery's cost formula for its wages and salaries is $1,610 per month plus $199 per birth.For the month of March,the company planned for activity of 118 births,but the actual level of activity was 122 births.The actual wages and salaries for the month was $25,430.The spending variance for wages and salaries in March would be closest to:

Menson 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 5,800 units,but its actual level of activity was 5,830 units.The company has provided the following data concerning the formulas to be used in its budgeting: -The direct labor in the planning budget for December would be closest to:

Higgenbotham Clinic uses client-visits as its measure of activity.During May,the clinic budgeted for 3,600 client-visits,but its actual level of activity was 3,580 client-visits.The clinic has provided the following data concerning the formulas to be used in its budgeting for May: -The administrative expenses in the planning budget for May would be closest to:

Witherington Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During June,the company budgeted for 7,800 units,but its actual level of activity was 7,850 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: -The manufacturing overhead in the flexible budget for June would be closest to:

Murphree Clinic uses client-visits as its measure of activity.During April,the clinic budgeted for 3,300 client-visits,but its actual level of activity was 3,350 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for April: -The activity variance for net operating income in April would be closest to:

Gladstone Footwear Corporation's flexible budget cost formula for supplies,a variable cost,is $2.83 per unit of output.The company's flexible budget performance report for last month showed a $9,555 unfavorable spending variance for supplies.During that month,19,500 units were produced.Budgeted activity for the month had been 19,300 units.The actual cost per unit for indirect materials must have been closest to:

Kalinowski 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 2,300 tenant-days,but its actual level of activity was 2,320 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: -The wages and salaries in the planning budget for February would be closest to:

Johannsen 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 $310 per month plus $103 per job plus $23 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 February to be 28 jobs and 187 meals,but the actual activity was 26 jobs and 192 meals.The actual cost for catering supplies in February was $7,620.The catering supplies in the flexible budget for February would be closest to:

Grundhoefer 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 April,the kennel budgeted for 2,000 tenant-days,but its actual level of activity was 1,990 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for April: -The activity variance for administrative expenses in April would be closest to:

Pollica Corporation's cost formula for its selling and administrative expense is $11,400 per month plus $94 per unit.For the month of March,the company planned for activity of 5,700 units,but the actual level of activity was 5,660 units.The actual selling and administrative expense for the month was $522,860. -The spending variance for selling and administrative expense in March would be closest to:

Weisgarber Clinic uses client-visits as its measure of activity.During August,the clinic budgeted for 3,900 client-visits,but its actual level of activity was 3,850 client-visits.The clinic has provided the following data concerning the formulas to be used in its budgeting for August: -The net operating income in the planning budget for August would be closest to:

Lauter Printing uses two measures of activity,press runs and book set-ups,in the cost formulas in its budgets and performance reports.The cost formula for wages and salaries is $5,300 per month plus $480 per press run plus $1,080 per book set-up.The company expected its activity in October to be 169 press runs and 64 book set-ups,but the actual activity was 167 press runs and 60 book set-ups.The actual cost for wages and salaries in October was $155,690. -The wages and salaries in the planning budget for October 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 direct labor in the planning budget for November would be closest to: