Deck 10: Flexible Budgets and Performance Analysis

Question 1

Barringer 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 7,900 machine-hours rather than 7,800 machine-hours?

A) $110,710.00
B) $109,620.00
C) $110,868.00
D) $111,025.38

Answer 1

A

Question 2

A revenue variance is unfavorable if the actual revenue is less than what the revenue should have been for the actual level of activity for the period.

Answer 2

True

Question 3

The activity variance for revenue is unfavorable if the actual revenue for the period is less than the revenue in the static planning budget.

Answer 3

False

Question 4

A flexible budget:

A) classifies budget requests by activity and estimates the benefits arising from each activity.
B) presents a statement of expectations for a period of time but does not present a firm commitment.
C) presents the plan for only one level of activity and does not adjust to changes in the level of activity.
D) presents the plan for a range of activity so that the plan can be adjusted for changes in activity levels.

Question 5

When the activity measure is the number of units sold, the revenue variance is unfavorable if the average actual selling price is less than expected.

Question 6

It may be easier to control fixed costs than variable costs.

Question 7

A favorable spending variance occurs when the actual cost is less than the amount of that cost in the flexible budget.

Question 8

The revenue and spending variances are the differences between the static planning budget and the flexible budget.

Question 9

The main difference between a flexible budget and a static budget is that a flexible budget does not contain fixed costs.

Question 10

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.

Question 11

A static planning budget is suitable for planning and for evaluating how well costs are controlled.

Question 12

A flexible budget is an estimate of what revenues and costs should have been, given the level of activity that had been planned for the period.

Question 13

A planning budget is prepared before the period begins and is valid for only the planned level of activity.

Question 14

A problem with directly comparing a static planning budget to actual costs is that this comparison fails to distinguish between differences in costs that are due to changes in activity and differences that are due to how well costs were controlled.

Question 15

Which of the following comparisons best isolates the impact that changes in prices of inputs and outputs have on performance?

A) static planning budget and flexible budget
B) static planning budget and actual results
C) flexible budget and actual results
D) master budget and static planning budget

Question 16

Marchi Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below:
The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 70 guests?

A) $42,460.00
B) $6,620.00
C) $7,086.15
D) $6,580.00

Question 17

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

Question 18

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

Question 19

A flexible budget is a budget that:

A) is updated with actual costs as they occur during the period.
B) is updated to reflect the actual level of activity during the period.
C) is prepared using a computer spreadsheet application.
D) contains only variable production costs.

Question 20

An unfavorable activity variance for a cost indicates that spending was higher than it should have been for the actual level of activity for the period.

Question 21

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:

A) $6,490 U
B) $5,303 F
C) $6,490 F
D) $5,303 U

Question 22

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:

A) $159,440
B) $149,650
C) $160,430
D) $172,200

Question 23

Blackwelder Snow Removal's cost formula for its vehicle operating cost is $1,240 per month plus $348 per snow-day. For the month of December, the company planned for activity of 12 snow-days, but the actual level of activity was 14 snow-days. The actual vehicle operating cost for the month was $6,330. The vehicle operating cost in the planning budget for December would be closest to:

A) $5,426
B) $6,112
C) $5,416
D) $6,330

Question 24

Brattain Tile Installation Corporation measures its activity in terms of square feet of tile installed. Last month, the budgeted level of activity was 1,230 square feet and the actual level of activity was 1,140 square feet. The company's owner budgets for supply costs, a variable cost, at $2.10 per square foot. The actual supply cost last month was $3,260. In the company's flexible budget performance report for last month, what would have been the spending variance for supply costs?

A) $257 F
B) $866 U
C) $677 U
D) $189 F

Question 25

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:

A) $118 F
B) $256 F
C) $1,566 U
D) $1,822 U

Question 26

Entler Framing's cost formula for its supplies cost is $2,250 per month plus $16 per frame. For the month of June, the company planned for activity of 502 frames, but the actual level of activity was 497 frames. The actual supplies cost for the month was $10,580. The supplies cost in the planning budget for June would be closest to:

A) $10,580
B) $10,282
C) $10,686
D) $10,202

Question 27

Lapinsky 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 $31,400 per month plus $2,148 per flight plus $7 per passenger. The company expected its activity in April to be 89 flights and 261 passengers, but the actual activity was 84 flights and 260 passengers. The actual cost for plane operating costs in April was $204,810. The spending variance for plane operating costs in April would be closest to:

A) $8,842 U
B) $19,589 F
C) $19,589 U
D) $8,842 F

Question 28

Guilbault Midwifery's cost formula for its wages and salaries is $2,340 per month plus $154 per birth. For the month of June, the company planned for activity of 115 births, but the actual level of activity was 112 births. The actual wages and salaries for the month was $19,530. The wages and salaries in the planning budget for June would be closest to:

A) $19,530
B) $19,588
C) $20,053
D) $20,050

Question 29

Embertson Framing's cost formula for its supplies cost is $1,350 per month plus $16 per frame. For the month of June, the company planned for activity of 816 frames, but the actual level of activity was 812 frames. The actual supplies cost for the month was $14,680. The activity variance for supplies cost in June would be closest to:

A) $64 U
B) $274 U
C) $64 F
D) $274 F

Question 30

Naval 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 $430 per month plus $99 per job plus $10 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 March to be 12 jobs and 126 meals, but the actual activity was 9 jobs and 124 meals. The actual cost for catering supplies in March was $2,550. The catering supplies in the planning budget for March would be closest to:

A) $3,400
B) $2,561
C) $2,550
D) $2,878

Question 31

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:

A) $7,495
B) $7,404
C) $7,620
D) $6,960

Question 32

Placek Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below:
The total overhead cost at an activity level of 7,700 patient-visits per month should be:

A) $129,550
B) $121,720
C) $129,100
D) $137,830

Question 33

Ofarrell Snow Removal's cost formula for its vehicle operating cost is $1,840 per month plus $377 per snow-day. For the month of November, the company planned for activity of 14 snow-days, but the actual level of activity was 19 snow-days. The actual vehicle operating cost for the month was $9,280. The vehicle operating cost in the flexible budget for November would be closest to:

A) $9,003
B) $7,118
C) $9,280
D) $9,660

Question 34

Reuer Midwifery's cost formula for its wages and salaries is $2,900 per month plus $475 per birth. For the month of March, the company planned for activity of 116 births, but the actual level of activity was 117 births. The actual wages and salaries for the month was $56,270. The activity variance for wages and salaries in March would be closest to:

A) $1,730 U
B) $475 F
C) $475 U
D) $1,730 F

Question 35

Rising Framing's cost formula for its supplies cost is $2,210 per month plus $10 per frame. For the month of January, the company planned for activity of 710 frames, but the actual level of activity was 705 frames. The actual supplies cost for the month was $9,500. The supplies cost in the flexible budget for January would be closest to:

A) $9,260
B) $9,244
C) $9,500
D) $9,310

Question 36

Kimbril 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 $530 per month plus $91 per job plus $12 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 January to be 27 jobs and 174 meals, but the actual activity was 31 jobs and 173 meals. The actual cost for catering supplies in January was $5,330. The activity variance for catering supplies in January would be closest to:

A) $255 F
B) $255 U
C) $352 F
D) $352 U

Question 37

Posson 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 $210 per month plus $96 per job plus $20 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 March to be 20 jobs and 162 meals, but the actual activity was 17 jobs and 164 meals. The actual cost for catering supplies in March was $4,990. The spending variance for catering supplies in March would be closest to:

A) $380 F
B) $132 U
C) $132 F
D) $380 U

Question 38

Cahalane Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of activity was 11,600 skeins and the actual level of activity was 12,000 skeins. The company's owner budgets for dye costs, a variable cost, at $0.31 per skein. The actual dye cost last month was $3,540. In the company's flexible budget performance report for last month, what would have been the spending variance for dye costs?

A) $118 U
B) $124 U
C) $56 F
D) $180 F

Question 39

Dewberry Midwifery's cost formula for its wages and salaries is $1,960 per month plus $429 per birth. For the month of December, the company planned for activity of 128 births, but the actual level of activity was 130 births. The actual wages and salaries for the month was $56,020. The wages and salaries in the flexible budget for December would be closest to:

A) $57,761
B) $57,730
C) $56,020
D) $56,872

Question 40

Portsche Snow Removal's cost formula for its vehicle operating cost is $2,310 per month plus $317 per snow-day. For the month of November, the company planned for activity of 18 snow-days, but the actual level of activity was 20 snow-days. The actual vehicle operating cost for the month was $8,730. The activity variance for vehicle operating cost in November would be closest to:

A) $714 U
B) $714 F
C) $634 F
D) $634 U

Question 41

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 flexible budget for March would be closest to:

A) $547,200
B) $522,860
C) $543,360
D) $543,440

Question 42

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 spending variance for manufacturing overhead in March would be closest to:

A) $670 F
B) $1,980 U
C) $1,980 F
D) $670 U

Question 43

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:

A) $3.32
B) $3.81
C) $2.83
D) $3.85

Question 44

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 manufacturing overhead in the flexible budget for March would be closest to:

A) $371,650
B) $371,281
C) $373,630
D) $374,300

Question 45

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:

A) $3,110
B) $6,300
C) $2,969
D) $3,809

Question 46

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:

A) $20,580 F
B) $24,340 U
C) $24,340 F
D) $20,580 U

Question 47

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 spending variance for materials and supplies in April would be closest to:

A) $195 F
B) $485 F
C) $195 U
D) $485 U

Question 48

Elizarraras 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 $39,820 per month plus $2,938 per flight plus $8 per passenger. The company expected its activity in June to be 64 flights and 229 passengers, but the actual activity was 66 flights and 225 passengers. The actual cost for plane operating costs in June was $234,570. The plane operating costs in the planning budget for June would be closest to:

A) $229,684
B) $227,462
C) $234,570
D) $235,528

Question 49

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 materials and supplies in the planning budget for April would be closest to:

A) $4,850
B) $5,045
C) $3,413
D) $4,365

Question 50

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 manufacturing overhead in the planning budget for March would be closest to:

A) $373,630
B) $371,650
C) $376,668
D) $374,300

Question 51

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:

A) $522,860
B) $547,200
C) $543,440
D) $526,555

Question 52

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:

A) $680 U
B) $485 F
C) $680 F
D) $485 U

Question 53

Olivier Framing's cost formula for its supplies cost is $2,870 per month plus $16 per frame. For the month of January, the company planned for activity of 533 frames, but the actual level of activity was 534 frames. The actual supplies cost for the month was $11,080. The spending variance for supplies cost in January would be closest to:

A) $334 U
B) $334 F
C) $318 U
D) $318 F

Question 54

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:

A) $2,123 U
B) $292 F
C) $2,123 F
D) $292 U

Question 55

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:

A) $458 F
B) $338 U
C) $458 U
D) $338 F

Question 56

Niforos 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 $41,380 per month plus $2,282 per flight plus $14 per passenger. The company expected its activity in August to be 77 flights and 264 passengers, but the actual activity was 78 flights and 261 passengers. The actual cost for plane operating costs in August was $216,740. The plane operating costs in the flexible budget for August would be closest to:

A) $220,790
B) $223,030
C) $223,657
D) $216,740

Question 57

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 activity variance for selling and administrative expense in March would be closest to:

A) $24,340 F
B) $24,340 U
C) $3,760 U
D) $3,760 F

Question 58

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:

A) $670 U
B) $670 F
C) $2,650 F
D) $2,650 U

Question 59

Velten Corporation's flexible budget performance report for last month shows that actual indirect materials cost, a variable cost, was $45,198 and that the spending variance for indirect materials cost was $9,114 favorable. During that month, the company worked 18,600 machine-hours. Budgeted activity for the month had been 19,000 machine-hours. The cost formula per machine-hour for indirect materials cost must have been closest to:

A) $1.90
B) $2.86
C) $1.94
D) $2.92

Question 60

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 materials and supplies in the flexible budget for April would be closest to:

A) $6,203
B) $4,850
C) $4,365
D) $5,045

Question 61

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 activity variance for cleaning equipment and supplies in September would be closest to:

A) $840 F
B) $699 F
C) $699 U
D) $840 U

Question 62

Gorley 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 3,900 tenant-days, but its actual level of activity was 3,940 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
The activity variance for net operating income in February would be closest to:

A) $368 F
B) $368 U
C) $632 F
D) $632 U

Question 63

Feiner Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,220 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:
The activity variance for personnel expenses in December would be closest to:

A) $4,024 F
B) $466 F
C) $466 U
D) $4,024 U

Question 64

Enriques 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 4,990 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for February:
The activity variance for direct labor in February would be closest to:

A) $61 U
B) $1,081 U
C) $61 F
D) $1,081 F

Question 65

Gorley 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 3,900 tenant-days, but its actual level of activity was 3,940 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 February would be closest to:

A) $18 U
B) $12 U
C) $18 F
D) $12 F

Question 66

Werber Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,700 client-visits, but its actual level of activity was 2,730 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:
The activity variance for personnel expenses in January would be closest to:

A) $661 U
B) $261 U
C) $261 F
D) $661 F

Question 67

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 wages and salaries in April would be closest to:

A) $66 F
B) $564 U
C) $564 F
D) $66 U

Question 68

Enriques 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 4,990 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for February:
The activity variance for selling and administrative expenses in February would be closest to:

A) $1,308 F
B) $1,308 U
C) $2 U
D) $2 F

Question 69

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 spending variance for cleaning equipment and supplies in September would be closest to:

A) $699 F
B) $699 U
C) $141 F
D) $141 U

Question 70

Gorley 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 3,900 tenant-days, but its actual level of activity was 3,940 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
The activity variance for wages and salaries in February would be closest to:

A) $1,152 U
B) $1,152 F
C) $292 U
D) $292 F

Question 71

Werber Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,700 client-visits, but its actual level of activity was 2,730 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:
The activity variance for administrative expenses in January would be closest to:

A) $12 F
B) $8 F
C) $12 U
D) $8 U

Question 72

Feiner Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,220 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:
The activity variance for net operating income in December would be closest to:

A) $690 U
B) $9,670 U
C) $690 F
D) $9,670 F

Question 73

Feiner Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,220 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:
The activity variance for administrative expenses in December would be closest to:

A) $8 F
B) $162 F
C) $162 U
D) $8 U

Question 74

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 flexible budget for September would be closest to:

A) $1,880
B) $3,110
C) $3,809
D) $2,969

Question 75

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:

A) $180 U
B) $70 F
C) $70 U
D) $180 F

Question 76

Werber Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,700 client-visits, but its actual level of activity was 2,730 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:
The activity variance for net operating income in January would be closest to:

A) $2,019 U
B) $2,019 F
C) $489 F
D) $489 U

Question 77

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:

A) $1 F
B) $79 F
C) $79 U
D) $1 U

Question 78

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 net operating income in April would be closest to:

A) $141 U
B) $2,651 U
C) $2,651 F
D) $141 F

Question 79

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 selling and administrative expenses in December would be closest to:

A) $14 U
B) $14 F
C) $1,206 F
D) $1,206 U

Question 80

Enriques 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 4,990 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for February:
The activity variance for net operating income in February would be closest to:

A) $2,716 F
B) $2,716 U
C) $176 U
D) $176 F