Exam 9: Flexible Budgets and Performance Analysis

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 manufacturing overhead in the flexible budget for July 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 spending variance for direct materials in March would be closest to:

Luc Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During February,the company budgeted for 5,000 units,but its actual level of activity was 4,950 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for February: -The spending variance for direct materials in February 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 selling and administrative expense in the planning budget for March would be closest to:

Kaaihue Detailing's cost formula for its materials and supplies is $2,750 per month plus $17 per vehicle.For the month of April,the company planned for activity of 95 vehicles,but the actual level of activity was 135 vehicles.The actual materials and supplies for the month was $4,850. -The activity variance for materials and supplies in April would be closest to:

Alicuben Memorial Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for October was based on 2,200 meals,but the diner actually served 2,000 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 activity variances for each of the expenses and for total expenses for October.Label each variance as favorable (F) or unfavorable (U).

Lakey Corporation uses customers served as its measure of activity.During July,the company budgeted for 33,000 customers,but actually served 34,000 customers.The company has provided the following data concerning the formulas used in its budgeting and its actual results for July: Required: Prepare a report showing the company's revenue and spending variances for July.Label each variance as favorable (F) or unfavorable (U).

Mccarter Clinic bases its budgets on the activity measure patient-visits.During April,the clinic planned for 2,700 patient-visits,but its actual level of activity was 2,400 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 April.Indicate in each case whether the variance is favorable (F) or unfavorable (U).

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 supplies cost in the flexible budget performance report for the month should be:

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 occupancy expenses in the flexible budget for May 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 equipment depreciation in the flexible budget performance report for the month should be:

Dike Hotel bases its budgets on guest-days.The hotel's static budget for June appears below: The total overhead cost at an activity level of 8,400 guest-days per month should be:

Burget Clinic uses client-visits as its measure of activity.During July,the clinic budgeted for 2,100 client-visits,but its actual level of activity was 2,110 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July: -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 July would be closest to:

Braseth Clinic uses patient-visits as its measure of activity.The clinic bases its budgets on the following information: Revenue should be $39.90 per patient-visit.Personnel expenses should be $35,400 per month plus $13.00 per patient-visit.Medical supplies should be $1,100 per month plus $4.90 per patient-visit.Occupancy expenses should be $8,400 per month plus $2.00 per patient-visit.Administrative expenses should be $4,700 per month plus $0.20 per patient-visit. The clinic reported the following actual results for January: Required: Prepare a report showing the clinic's revenue and spending variances for January.Label each variance as favorable (F) or unfavorable (U).

Springmeyer Clinic uses client-visits as its measure of activity.During August,the clinic budgeted for 2,900 client-visits,but its actual level of activity was 2,940 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August: -The administrative expenses in the planning budget for August would be closest to:

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

Mulvehill Clinic bases its budgets on the activity measure patient-visits.During June,the clinic planned for 3,000 patient-visits,but the actual level of activity was 3,400 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 June.Indicate in each case whether the variance is favorable (F) or unfavorable (U).

Fasano Clinic bases its budgets on the activity measure patient-visits.During April,the clinic planned for 3,800 patient-visits.The clinic has provided the following data concerning the formulas it uses in its budgeting: The clinic has also furnished its income statement for April: Required: Prepare a report showing the clinic's activity variances for April.

Laboe 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 2,900 tenant-days,but its actual level of activity was 2,940 tenant-days.The kennel has provided the following data concerning the formulas to be used in its budgeting: -The administrative expenses in the planning budget for February would be closest to:

During March,Holston Corporation plans to serve 31,000 customers.The company uses the following revenue and cost formulas in its budgeting,where q is the number of customers served: Revenue: $4.60q Wages and salaries: $36,600 + $1.60q Supplies: $0.80q Insurance: $10,900 Miscellaneous: $8,500 + $0.20q Required: Prepare the company's planning budget for March.