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Witten Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Witten Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. A total of 27 customers were actually served during January. -The Other expenses in the flexible budget for January would have been closest to: A) $42,900 B) $52,650 C) $43,100 D) $34,956 A total of 27 customers were actually served during January. -The "Other expenses" in the flexible budget for January would have been closest to:


A) $42,900
B) $52,650
C) $43,100
D) $34,956

E) B) and C)
F) A) and D)

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Schriever Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. The number of wells serviced in the planning budget is missing from the given information - this information is necessary to complete the calculations in the subsequent questions. Schriever Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. The number of wells serviced in the planning budget is missing from the given information - this information is necessary to complete the calculations in the subsequent questions. The planning budget for May was based on 36 wells serviced, but aA total of 31 wells were actually serviced during May. -The activity variance for Other expenses for May would have been closest to: A) $200 U B) $0 C) $200 F D) $4,767.74 U The planning budget for May was based on 36 wells serviced, but aA total of 31 wells were actually serviced during May. -The activity variance for "Other expenses" for May would have been closest to:


A) $200 U
B) $0
C) $200 F
D) $4,767.74 U

E) B) and D)
F) B) and C)

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Bugos Corporation is a service company that measures its output by the number of customers served.The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Bugos Corporation is a service company that measures its output by the number of customers served.The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. When the company prepared its planning budget at the beginning of March,it assumed that 40 customers would have been served. The amount shown for Employee salaries and wages in the planning budget for March would have been closest to: A) $91,200 B) $94,800 C) $92,600 D) $102,889 When the company prepared its planning budget at the beginning of March,it assumed that 40 customers would have been served. The amount shown for "Employee salaries and wages" in the planning budget for March would have been closest to:


A) $91,200
B) $94,800
C) $92,600
D) $102,889

E) A) and B)
F) None of the above

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Dubberly Corporation's cost formula for its manufacturing overhead is $30,600 per month plus $64 per machine-hour. For the month of March, the company planned for activity of 7,900 machine-hours, but the actual level of activity was 7,880 machine-hours. The actual manufacturing overhead for the month was $558,610. -The manufacturing overhead in the flexible budget for March would be closest to:


A) $558,610
B) $536,200
C) $534,843
D) $534,920

E) C) and D)
F) B) and D)

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Comparing a static planning budget to actual costs is a not good way to assess whether variable costs are under control.

A) True
B) False

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Isadore Hospital bases its budgets on patient-visits. The hospital's static planning budget for July appears below: Isadore Hospital bases its budgets on patient-visits. The hospital's static planning budget for July appears below: Actual results for the month were: -The spending variance for supplies costs in the flexible budget performance report for the month is: A) $2,370 U B) $2,370 F C) $2,830 F D) $2,830 U Actual results for the month were: Isadore Hospital bases its budgets on patient-visits. The hospital's static planning budget for July appears below: Actual results for the month were: -The spending variance for supplies costs in the flexible budget performance report for the month is: A) $2,370 U B) $2,370 F C) $2,830 F D) $2,830 U -The spending variance for supplies costs in the flexible budget performance report for the month is:


A) $2,370 U
B) $2,370 F
C) $2,830 F
D) $2,830 U

E) B) and C)
F) None of the above

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Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 2,400 machine-hours rather than 2,500 machine-hours? A) $59,830 B) $59,280 C) $60,380 D) $61,750 The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 2,400 machine-hours rather than 2,500 machine-hours?


A) $59,830
B) $59,280
C) $60,380
D) $61,750

E) None of the above
F) B) and C)

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Bernes 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 October, the kennel budgeted for 2,700 tenant-days, but its actual level of activity was 2,720 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: Bernes 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 October, the kennel budgeted for 2,700 tenant-days, but its actual level of activity was 2,720 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: -The activity variance for administrative expenses in October would be closest to: A) $2 F B) $162 F C) $162 U D) $2 U -The activity variance for administrative expenses in October would be closest to:


A) $2 F
B) $162 F
C) $162 U
D) $2 U

E) A) and C)
F) A) and D)

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Stegemann Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for May. Stegemann Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for May. When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May. -The spending variance for Employee salaries and wages for May would have been closest to: A) $1,700 U B) $4,300 U C) $1,700 F D) $4,300 F When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May. -The spending variance for "Employee salaries and wages" for May would have been closest to:


A) $1,700 U
B) $4,300 U
C) $1,700 F
D) $4,300 F

E) A) and B)
F) A) and C)

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Gordin 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 3,000 tenant-days, but its actual level of activity was 3,020 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Gordin 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 3,000 tenant-days, but its actual level of activity was 3,020 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Actual results for May: -The administrative expenses in the planning budget for May would be closest to: A) $6,300 B) $6,302 C) $6,121 D) $6,162 Actual results for May: Gordin 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 3,000 tenant-days, but its actual level of activity was 3,020 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Actual results for May: -The administrative expenses in the planning budget for May would be closest to: A) $6,300 B) $6,302 C) $6,121 D) $6,162 -The administrative expenses in the planning budget for May would be closest to:


A) $6,300
B) $6,302
C) $6,121
D) $6,162

E) A) and B)
F) B) and C)

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Rameriz Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished.The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Rameriz Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished.The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. A total of 34 containers were actually refurbished during May. Required: Prepare a flexible budget for the actual level of activity for May. A total of 34 containers were actually refurbished during May. Required: Prepare a flexible budget for the actual level of activity for May.

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Pickrel Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Pickrel Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. When the company prepared its planning budget at the beginning of November, it assumed that 27 wells would have been serviced. However, 31 wells were actually serviced during November. -The amount shown for Servicing materials in the planning budget for November would have been closest to: A) $19,000 B) $16,200 C) $16,548 D) $18,600 When the company prepared its planning budget at the beginning of November, it assumed that 27 wells would have been serviced. However, 31 wells were actually serviced during November. -The amount shown for "Servicing materials" in the planning budget for November would have been closest to:


A) $19,000
B) $16,200
C) $16,548
D) $18,600

E) A) and C)
F) B) and D)

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Flexible budgets can be used when there is more than one cost driver (i.e.,measure of activity).

A) True
B) False

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Bickel 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: Bickel 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). Required: Prepare the company's flexible budget performance report for November.Label each variance as favorable (F)or unfavorable (U).

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Harold 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 7,900 units, but its actual level of activity was 7,860 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Harold 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 7,900 units, but its actual level of activity was 7,860 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Actual results for March: -The selling and administrative expenses in the planning budget for March would be closest to: A) $31,330 B) $31,350 C) $31,950 D) $32,113 Actual results for March: Harold 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 7,900 units, but its actual level of activity was 7,860 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Actual results for March: -The selling and administrative expenses in the planning budget for March would be closest to: A) $31,330 B) $31,350 C) $31,950 D) $32,113 -The selling and administrative expenses in the planning budget for March would be closest to:


A) $31,330
B) $31,350
C) $31,950
D) $32,113

E) A) and D)
F) C) and D)

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Dilley Clinic uses patient-visits as its measure of activity.During November,the clinic budgeted for 3,100 patient-visits,but its actual level of activity was 3,500 patient-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting: Dilley Clinic uses patient-visits as its measure of activity.During November,the clinic budgeted for 3,100 patient-visits,but its actual level of activity was 3,500 patient-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting: Actual results for November: Required: Prepare a report showing the clinic's revenue and spending variances for November.Label each variance as favorable (F)or unfavorable (U). Actual results for November: Dilley Clinic uses patient-visits as its measure of activity.During November,the clinic budgeted for 3,100 patient-visits,but its actual level of activity was 3,500 patient-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting: Actual results for November: Required: Prepare a report showing the clinic's revenue and spending variances for November.Label each variance as favorable (F)or unfavorable (U). Required: Prepare a report showing the clinic's revenue and spending variances for November.Label each variance as favorable (F)or unfavorable (U).

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Prowse Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Prowse Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. A total of 42 wells were actually serviced during October. -The revenue in the company's flexible budget for October would have been closest to: A) $148,000 B) $150,114 C) $168,000 D) $170,400 A total of 42 wells were actually serviced during October. -The revenue in the company's flexible budget for October would have been closest to:


A) $148,000
B) $150,114
C) $168,000
D) $170,400

E) All of the above
F) A) and D)

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-The variance for net operating income in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for August would have been closest to: A) $4,100 U B) $4,100 F C) $1,100 U D) $1,100 F -The variance for net operating income in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for August would have been closest to:


A) $4,100 U
B) $4,100 F
C) $1,100 U
D) $1,100 F

E) B) and D)
F) A) and B)

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Lasserre Clinic uses patient-visits as its measure of activity.During November,the clinic budgeted for 2,800 patient-visits,but its actual level of activity was 3,000 patient-visits.The clinic uses the following revenue and cost formulas in its budgeting,where q is the number of patient-visits: Revenue: $50.40q Personnel expenses: $36,200 + $15.60q Medical supplies: $1,500 + $8.80q Occupancy expenses: $8,700 + $2.80q Administrative expenses: $4,300 + $0.40q The clinic reported the following actual results for November: Lasserre Clinic uses patient-visits as its measure of activity.During November,the clinic budgeted for 2,800 patient-visits,but its actual level of activity was 3,000 patient-visits.The clinic uses the following revenue and cost formulas in its budgeting,where q is the number of patient-visits: Revenue: $50.40q Personnel expenses: $36,200 + $15.60q Medical supplies: $1,500 + $8.80q Occupancy expenses: $8,700 + $2.80q Administrative expenses: $4,300 + $0.40q The clinic reported the following actual results for November: Required: Prepare the clinic's flexible budget performance report for November.Label each variance as favorable (F)or unfavorable (U). Required: Prepare the clinic's flexible budget performance report for November.Label each variance as favorable (F)or unfavorable (U).

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Dinham 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 2,000 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 March: Data used in budgeting: Dinham 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 2,000 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 March: Data used in budgeting: Actual results for March: -The revenue variance for March would be closest to: A) $2,640 U B) $2,640 F C) $1,224 U D) $1,224 F Actual results for March: Dinham 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 2,000 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 March: Data used in budgeting: Actual results for March: -The revenue variance for March would be closest to: A) $2,640 U B) $2,640 F C) $1,224 U D) $1,224 F -The revenue variance for March would be closest to:


A) $2,640 U
B) $2,640 F
C) $1,224 U
D) $1,224 F

E) All of the above
F) A) and B)

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