Deck 8: Flexible Budgets and Performance Analysis

Question 1

The purpose of a flexible budget is to:

A)remove items from performance reports that are not controllable by managers.
B)permit managers to reduce the number of unfavorable variances that are reported.
C)update the static planning budget to reflect the actual level of activity of the period.
D)reduce the amount of conflict between departments when the master budget is prepared.

Answer 1

C
Explanation: When a flexible budget is used in performance evaluation,actual costs are compared to what the costs should have been for the actual level of activity during the period rather than to the static planning budget.

Question 2

A flexible budget performance report contains both activity variances and revenue and spending variances.

Answer 2

True

Question 3

Which of the following would not appear on a flexible budget performance report as shown in the text?

A)Variable costs.
B)Mixed costs.
C)A flexible budget adjusted to the actual level of activity.
D)The previous year's actual costs.

Answer 3

D
Explanation: Flexible budget performance reports show only current year information.

Question 4

When a flexible budget is used in performance evaluation,actual costs are compared to what the costs should have been for the actual level of activity during the period rather than to the static planning budget.

Question 5

A flexible budget can be used to determine what costs should have been at a given level of activity.

Question 6

While fixed costs should not be affected by a change in the level of activity within the relevant range,they may change for other reasons.

Question 7

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

Question 8

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

Question 9

The activity variance for revenue is favorable if the actual level of activity for the period exceeds the planned level of activity.

Question 10

An activity variance is due solely to the difference between the level of activity assumed in the planning budget and the actual level of activity used in the flexible budget.

Question 11

The revenue and spending variances are the differences between the static planning budget and the actual results for the period.

Question 12

A spending variance is the difference between how much a cost should have been,given the actual level of activity,and the actual amount of the cost for the period.

Question 13

If activity is higher than expected,total variable costs should be higher than expected.If activity is lower than expected,total variable costs should be lower than expected.

Question 14

A revenue variance is favorable if the revenue in the static planning budget exceeds the revenue in the flexible budget.

Question 15

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

Question 16

Fixed costs should not be included in a performance report because fixed costs are not controllable.

Question 17

A static budget:

A)should be compared to actual costs to assess how well costs were controlled.
B)should be compared to a flexible budget to assess how well costs were controlled.
C)is valid for only one level of activity.
D)represents the best way to set spending targets for managers.

Question 18

Directly comparing static budget costs to actual costs only makes sense if the costs are fixed.

Question 19

Flexible budgets cannot be used when there is more than one cost driver (i.e. ,measure of activity).

Question 20

Which of the following comparisons best isolates the impact of a change in activity 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 21

Oscarson Midwifery's cost formula for its wages and salaries is $2,720 per month plus $351 per birth.For the month of September,the company planned for activity of 121 births,but the actual level of activity was 119 births.The actual wages and salaries for the month was $43,380.The wages and salaries in the planning budget for September would be closest to:

A)$45,191
B)$43,380
C)$44,489
D)$44,109

Question 22

Thomasson 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 $36,160 per month plus $2,038 per flight plus $1 per passenger.The company expected its activity in April to be 73 flights and 223 passengers,but the actual activity was 72 flights and 228 passengers.The actual cost for plane operating costs in April was $179,020.The activity variance for plane operating costs in April would be closest to:

A)$6,137 U
B)$6,137 F
C)$2,033 U
D)$2,033 F

Question 23

Sissac 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 $470 per month plus $101 per job plus $24 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 May to be 12 jobs and 123 meals,but the actual activity was 9 jobs and 126 meals.The actual cost for catering supplies in May was $4,240.The spending variance for catering supplies in May would be closest to:

A)$394 U
B)$394 F
C)$163 F
D)$163 U

Question 24

Gummer Hospital bases its budgets on patient-visits.The hospital's static budget for February appears below: The total overhead cost at an activity level of 10,800 patient-visits per month should be:

A)$317,520
B)$303,810
C)$291,060
D)$302,850

Question 25

Farver 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 $44,420 per month plus $2,008 per flight plus $1 per passenger.The company expected its activity in May to be 80 flights and 281 passengers,but the actual activity was 81 flights and 277 passengers.The actual cost for plane operating costs in May was $199,650.The spending variance for plane operating costs in May would be closest to:

A)$5,691 F
B)$7,695 U
C)$7,695 F
D)$5,691 U

Question 26

Gradert Framing's cost formula for its supplies cost is $1,540 per month plus $12 per frame.For the month of September,the company planned for activity of 668 frames,but the actual level of activity was 666 frames.The actual supplies cost for the month was $9,980.The supplies cost in the planning budget for September would be closest to:

A)$10,010
B)$9,532
C)$9,556
D)$9,980

Question 27

Whit 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 $380 per month plus $94 per job plus $11 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 October to be 20 jobs and 216 meals,but the actual activity was 19 jobs and 221 meals.The actual cost for catering supplies in October was $4,790.The catering supplies in the flexible budget for October would be closest to:

A)$4,404
B)$4,790
C)$4,636
D)$4,597

Question 28

Wadhams Snow Removal's cost formula for its vehicle operating cost is $1,900 per month plus $430 per snow-day.For the month of December,the company planned for activity of 16 snow-days,but the actual level of activity was 21 snow-days.The actual vehicle operating cost for the month was $11,470.The vehicle operating cost in the planning budget for December would be closest to:

A)$10,930
B)$11,470
C)$8,739
D)$8,780

Question 29

Scarfo Hotel bases its budgets on guest-days.The hotel's static budget for December appears below: The total overhead cost at an activity level of 2,900 guest-days per month should be:

A)$20,680
B)$17,640
C)$24,360
D)$20,890

Question 30

Schlick Framing's cost formula for its supplies cost is $1,770 per month plus $12 per frame.For the month of August,the company planned for activity of 628 frames,but the actual level of activity was 631 frames.The actual supplies cost for the month was $9,790.The activity variance for supplies cost in August would be closest to:

A)$36 F
B)$484 F
C)$484 U
D)$36 U

Question 31

Salyers 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 53 guests?

A)$7,159.20
B)$6,680.60
C)$7,184.80
D)$26,154.40

Question 32

Bargas Framing's cost formula for its supplies cost is $2,240 per month plus $6 per frame.For the month of May,the company planned for activity of 808 frames,but the actual level of activity was 810 frames.The actual supplies cost for the month was $7,090.The supplies cost in the flexible budget for May would be closest to:

A)$7,088
B)$7,090
C)$7,106
D)$7,100

Question 33

Stuchlik 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 $80 per job plus $14 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 20 jobs and 190 meals,but the actual activity was 21 jobs and 194 meals.The actual cost for catering supplies in January was $4,850.The catering supplies in the planning budget for January would be closest to:

A)$4,850
B)$4,619
C)$4,690
D)$4,826

Question 34

Orscheln Snow Removal's cost formula for its vehicle operating cost is $2,800 per month plus $381 per snow-day.For the month of February,the company planned for activity of 17 snow-days,but the actual level of activity was 14 snow-days.The actual vehicle operating cost for the month was $7,920.The activity variance for vehicle operating cost in February would be closest to:

A)$1,357 F
B)$1,357 U
C)$1,143 F
D)$1,143 U

Question 35

Fussner Medical Clinic measures its activity in terms of patient-visits.Last month,the budgeted level of activity was 1,610 patient-visits and the actual level of activity was 1,670 patient-visits.The cost formula for administrative expenses is $3.30 per patient-visit plus $17,900 per month.The actual administrative expense was $24,600.In the clinic's flexible budget performance report for last month,the spending variance for administrative expenses was:

A)$1,387 U
B)$198 U
C)$69 U
D)$1,189 U

Question 36

Kara 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 $84 per job plus $17 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 July to be 15 jobs and 127 meals,but the actual activity was 14 jobs and 126 meals.The actual cost for catering supplies in July was $3,620.The activity variance for catering supplies in July would be closest to:

A)$109 F
B)$109 U
C)$101 F
D)$101 U

Question 37

Petersheim Snow Removal's cost formula for its vehicle operating cost is $1,750 per month plus $484 per snow-day.For the month of November,the company planned for activity of 15 snow-days,but the actual level of activity was 14 snow-days.The actual vehicle operating cost for the month was $8,360.The vehicle operating cost in the flexible budget for November would be closest to:

A)$8,526
B)$8,409
C)$9,010
D)$8,360

Question 38

Bolick Midwifery's cost formula for its wages and salaries is $1,800 per month plus $152 per birth.For the month of May,the company planned for activity of 119 births,but the actual level of activity was 114 births.The actual wages and salaries for the month was $19,980.The activity variance for wages and salaries in May would be closest to:

A)$760 U
B)$92 U
C)$92 F
D)$760 F

Question 39

Clovis Midwifery's cost formula for its wages and salaries is $2,680 per month plus $245 per birth.For the month of September,the company planned for activity of 118 births,but the actual level of activity was 121 births.The actual wages and salaries for the month was $33,290.The wages and salaries in the flexible budget for September would be closest to:

A)$32,393
B)$31,590
C)$32,325
D)$33,290

Question 40

Stock 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 6,600 machine-hours rather than 6,900 machine-hours?

A)$84,321.00
B)$87,590.00
C)$84,860.00
D)$83,781.74

Question 41

Bamba Corporation's cost formula for its selling and administrative expense is $47,900 per month plus $52 per unit. For the month of April, the company planned for activity of 6,000 units, but the actual level of activity was 5,960 units. The actual selling and administrative expense for the month was $364,490.

-The selling and administrative expense in the planning budget for April would be closest to:

A)$357,820
B)$359,900
C)$364,490
D)$366,936

Question 42

Ingrum Framing's cost formula for its supplies cost is $1,120 per month plus $11 per frame.For the month of June,the company planned for activity of 611 frames,but the actual level of activity was 607 frames.The actual supplies cost for the month was $8,150.The spending variance for supplies cost in June would be closest to:

A)$353 F
B)$309 U
C)$353 U
D)$309 F

Question 43

Fullagar Corporation's cost formula for its manufacturing overhead is $15,400 per month plus $11 per machine-hour. For the month of May, the company planned for activity of 7,500 machine-hours, but the actual level of activity was 7,540 machine-hours. The actual manufacturing overhead for the month was $102,710.

-The spending variance for manufacturing overhead in May would be closest to:

A)$4,370 U
B)$4,810 F
C)$4,810 U
D)$4,370 F

Question 44

Newsom Footwear Corporation's flexible budget cost formula for supplies,a variable cost,is $2.61 per unit of output.The company's flexible budget performance report for last month showed a $6,840 unfavorable spending variance for supplies.During that month,17,100 units were produced.Budgeted activity for the month had been 16,700 units.The actual cost per unit for indirect materials must have been closest to:

A)$3.01
B)$3.49
C)$3.41
D)$2.61

Question 45

Lantto 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 $34,810 per month plus $2,850 per flight plus $12 per passenger.The company expected its activity in June to be 70 flights and 292 passengers,but the actual activity was 69 flights and 291 passengers.The actual cost for plane operating costs in June was $236,550.The plane operating costs in the flexible budget for June would be closest to:

A)$237,814
B)$234,952
C)$236,550
D)$234,417

Question 46

Bamba Corporation's cost formula for its selling and administrative expense is $47,900 per month plus $52 per unit. For the month of April, the company planned for activity of 6,000 units, but the actual level of activity was 5,960 units. The actual selling and administrative expense for the month was $364,490.

-The spending variance for selling and administrative expense in April would be closest to:

A)$4,590 F
B)$6,670 F
C)$6,670 U
D)$4,590 U

Question 47

Celius Midwifery's cost formula for its wages and salaries is $2,410 per month plus $292 per birth.For the month of March,the company planned for activity of 113 births,but the actual level of activity was 116 births.The actual wages and salaries for the month was $35,340.The spending variance for wages and salaries in March would be closest to:

A)$942 F
B)$66 F
C)$66 U
D)$942 U

Question 48

Fullagar Corporation's cost formula for its manufacturing overhead is $15,400 per month plus $11 per machine-hour. For the month of May, the company planned for activity of 7,500 machine-hours, but the actual level of activity was 7,540 machine-hours. The actual manufacturing overhead for the month was $102,710.

-The activity variance for manufacturing overhead in May would be closest to:

A)$440 U
B)$440 F
C)$4,810 F
D)$4,810 U

Question 49

Cadavieco Detailing's cost formula for its materials and supplies is $1,990 per month plus $8 per vehicle. For the month of November, the company planned for activity of 92 vehicles, but the actual level of activity was 52 vehicles. The actual materials and supplies for the month was $2,440.

-The materials and supplies in the planning budget for November would be closest to:

A)$2,726
B)$2,406
C)$4,317
D)$2,440

Question 50

Zylka 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 $47,400 per month plus $2,337 per flight plus $3 per passenger.The company expected its activity in April to be 67 flights and 263 passengers,but the actual activity was 62 flights and 267 passengers.The actual cost for plane operating costs in April was $189,760.The plane operating costs in the planning budget for April would be closest to:

A)$189,760
B)$193,095
C)$204,768
D)$205,063

Question 51

Hamner Corporation's flexible budget performance report for last month shows that actual indirect materials cost,a variable cost,was $45,240 and that the spending variance for indirect materials cost was $3,480 unfavorable.During that month,the company worked 17,400 machine-hours.Budgeted activity for the month had been 17,000 machine-hours.The cost formula per machine-hour for indirect materials cost must have been closest to:

A)$2.46
B)$2.87
C)$2.40
D)$2.80

Question 52

Fullagar Corporation's cost formula for its manufacturing overhead is $15,400 per month plus $11 per machine-hour. For the month of May, the company planned for activity of 7,500 machine-hours, but the actual level of activity was 7,540 machine-hours. The actual manufacturing overhead for the month was $102,710.

-The manufacturing overhead in the planning budget for May would be closest to:

A)$98,340
B)$97,900
C)$102,710
D)$102,165

Question 53

Fullagar Corporation's cost formula for its manufacturing overhead is $15,400 per month plus $11 per machine-hour. For the month of May, the company planned for activity of 7,500 machine-hours, but the actual level of activity was 7,540 machine-hours. The actual manufacturing overhead for the month was $102,710.

-The manufacturing overhead in the flexible budget for May would be closest to:

A)$97,900
B)$98,422
C)$98,340
D)$102,710

Question 54

Soehl Natural Dying Corporation measures its activity in terms of skeins of yarn dyed.Last month,the budgeted level of activity was 14,100 skeins and the actual level of activity was 13,700 skeins.The company's owner budgets for dye costs,a variable cost,at $0.40 per skein.The actual dye cost last month was $4,510.In the company's flexible budget performance report for last month,what would have been the spending variance for dye costs?

A)$970 F
B)$132 F
C)$160 F
D)$1,130 F

Question 55

Bamba Corporation's cost formula for its selling and administrative expense is $47,900 per month plus $52 per unit. For the month of April, the company planned for activity of 6,000 units, but the actual level of activity was 5,960 units. The actual selling and administrative expense for the month was $364,490.

-The activity variance for selling and administrative expense in April would be closest to:

A)$4,590 F
B)$2,080 F
C)$2,080 U
D)$4,590 U

Question 56

Fudala Snow Removal's cost formula for its vehicle operating cost is $1,480 per month plus $308 per snow-day.For the month of March,the company planned for activity of 11 snow-days,but the actual level of activity was 16 snow-days.The actual vehicle operating cost for the month was $6,130.The spending variance for vehicle operating cost in March would be closest to:

A)$1,262 U
B)$278 F
C)$278 U
D)$1,262 F

Question 57

Cadavieco Detailing's cost formula for its materials and supplies is $1,990 per month plus $8 per vehicle. For the month of November, the company planned for activity of 92 vehicles, but the actual level of activity was 52 vehicles. The actual materials and supplies for the month was $2,440.

-The materials and supplies in the flexible budget for November would be closest to:

A)$2,440
B)$1,541
C)$2,726
D)$2,406

Question 58

Bamba Corporation's cost formula for its selling and administrative expense is $47,900 per month plus $52 per unit. For the month of April, the company planned for activity of 6,000 units, but the actual level of activity was 5,960 units. The actual selling and administrative expense for the month was $364,490.

-The selling and administrative expense in the flexible budget for April would be closest to:

A)$357,501
B)$359,900
C)$357,820
D)$364,490

Question 59

Brayboy Tile Installation Corporation measures its activity in terms of square feet of tile installed.Last month,the budgeted level of activity was 1,360 square feet and the actual level of activity was 1,300 square feet.The company's owner budgets for supply costs,a variable cost,at $3.90 per square foot.The actual supply cost last month was $4,300.In the company's flexible budget performance report for last month,what would have been the spending variance for supply costs?

A)$770 F
B)$1,004 F
C)$198 F
D)$234 F

Question 60

Cadavieco Detailing's cost formula for its materials and supplies is $1,990 per month plus $8 per vehicle. For the month of November, the company planned for activity of 92 vehicles, but the actual level of activity was 52 vehicles. The actual materials and supplies for the month was $2,440.

-The activity variance for materials and supplies in November would be closest to:

A)$320 U
B)$286 U
C)$286 F
D)$320 F

Question 61

Stivason Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,290 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for September:

Data used in budgeting:

Actual results for September:

-The activity variance for net operating income in September would be closest to:

A)$134 F
B)$306 U
C)$306 F
D)$134 U

Question 62

Kuramoto 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 7,600 units, but its actual level of activity was 7,560 units. The company has provided the following data concerning the formulas to be used in its budgeting:

-The activity variance for net operating income in June would be closest to:

A)$480 U
B)$1,460 U
C)$480 F
D)$1,460 F

Question 63

Snyders 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 2,600 tenant-days, but its actual level of activity was 2,610 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 October would be closest to:

A)$2,581 U
B)$99 F
C)$2,581 F
D)$99 U

Question 64

Snyders 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 2,600 tenant-days, but its actual level of activity was 2,610 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 October would be closest to:

A)$52 U
B)$652 F
C)$52 F
D)$652 U

Question 65

Albers Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During April, the company budgeted for 7,600 units, but its actual level of activity was 7,570 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April:

Data used in budgeting:
Actual results for April:

-The activity variance for selling and administrative expenses in April would be closest to:

A)$15 F
B)$645 F
C)$15 U
D)$645 U

Question 66

Stivason Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,290 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for September:

Data used in budgeting:

Actual results for September:

-The activity variance for administrative expenses in September would be closest to:

A)$3 F
B)$103 F
C)$3 U
D)$103 U

Question 67

Gourley Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 3,200 client-visits, but its actual level of activity was 3,160 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 August would be closest to:

A)$428 F
B)$2,868 U
C)$2,868 F
D)$428 U

Question 68

Mcquain Boat Wash's cost formula for its cleaning equipment and supplies is $1,950 per month plus $20 per boat. For the month of June, the company planned for activity of 85 boats, but the actual level of activity was 125 boats. The actual cleaning equipment and supplies for the month was $4,380.

-The cleaning equipment and supplies in the planning budget for June would be closest to:

A)$3,650
B)$4,450
C)$2,978
D)$4,380

Question 69

Cadavieco Detailing's cost formula for its materials and supplies is $1,990 per month plus $8 per vehicle. For the month of November, the company planned for activity of 92 vehicles, but the actual level of activity was 52 vehicles. The actual materials and supplies for the month was $2,440.

-The spending variance for materials and supplies in November would be closest to:

A)$34 F
B)$286 F
C)$34 U
D)$286 U

Question 70

Kuramoto 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 7,600 units, but its actual level of activity was 7,560 units. The company has provided the following data concerning the formulas to be used in its budgeting:

-The activity variance for direct labor in June would be closest to:

A)$312 F
B)$312 U
C)$1,592 U
D)$1,592 F

Question 71

Mcquain Boat Wash's cost formula for its cleaning equipment and supplies is $1,950 per month plus $20 per boat. For the month of June, the company planned for activity of 85 boats, but the actual level of activity was 125 boats. The actual cleaning equipment and supplies for the month was $4,380.

-The cleaning equipment and supplies in the flexible budget for June would be closest to:

A)$4,450
B)$4,380
C)$5,368
D)$3,650

Question 72

Mcquain Boat Wash's cost formula for its cleaning equipment and supplies is $1,950 per month plus $20 per boat. For the month of June, the company planned for activity of 85 boats, but the actual level of activity was 125 boats. The actual cleaning equipment and supplies for the month was $4,380.

-The activity variance for cleaning equipment and supplies in June would be closest to:

A)$800 F
B)$730 F
C)$730 U
D)$800 U

Question 73

Gourley Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 3,200 client-visits, but its actual level of activity was 3,160 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 August would be closest to:

A)$30 F
B)$780 F
C)$30 U
D)$780 U

Question 74

Stivason Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,290 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for September:

Data used in budgeting:

Actual results for September:

-The activity variance for personnel expenses in September would be closest to:

A)$605 U
B)$605 F
C)$85 F
D)$85 U

Question 75

Albers Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During April, the company budgeted for 7,600 units, but its actual level of activity was 7,570 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April:

Data used in budgeting:
Actual results for April:

-The activity variance for direct labor in April would be closest to:

A)$162 F
B)$162 U
C)$978 U
D)$978 F

Question 76

Albers Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During April, the company budgeted for 7,600 units, but its actual level of activity was 7,570 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April:

Data used in budgeting:
Actual results for April:

-The activity variance for net operating income in April would be closest to:

A)$372 U
B)$13,998 U
C)$13,998 F
D)$372 F

Question 77

Snyders 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 2,600 tenant-days, but its actual level of activity was 2,610 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)$3 U
B)$263 U
C)$263 F
D)$3 F

Question 78

Mcquain Boat Wash's cost formula for its cleaning equipment and supplies is $1,950 per month plus $20 per boat. For the month of June, the company planned for activity of 85 boats, but the actual level of activity was 125 boats. The actual cleaning equipment and supplies for the month was $4,380.

-The spending variance for cleaning equipment and supplies in June would be closest to:

A)$730 U
B)$70 U
C)$70 F
D)$730 F

Question 79

Gourley Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 3,200 client-visits, but its actual level of activity was 3,160 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 August would be closest to:

A)$72 F
B)$12 U
C)$72 U
D)$12 F

Question 80

Kuramoto 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 7,600 units, but its actual level of activity was 7,560 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 June would be closest to:

A)$1,286 U
B)$4 U
C)$1,286 F
D)$4 F