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Duprey Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,150 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Duprey Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,150 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Actual results for January: The administrative expenses in the planning budget for January would be closest to: A) $6,160 B) $6,068 C) $5,930 D) $6,180 Actual results for January: Duprey Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,150 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Actual results for January: The administrative expenses in the planning budget for January would be closest to: A) $6,160 B) $6,068 C) $5,930 D) $6,180 The administrative expenses in the planning budget for January would be closest to:


A) $6,160
B) $6,068
C) $5,930
D) $6,180

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

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An activity variance is the difference between an actual revenue or cost and the revenue or cost in the flexible budget that is adjusted for the actual level of activity of the period.

A) True
B) False

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Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2,460 per month plus $49 per boat. For the month of April, the company planned for activity of 58 boats, but the actual level of activity was 18 boats. The actual cleaning equipment and supplies for the month was $3,470. The activity variance for cleaning equipment and supplies in April would be closest to:


A) $1,960 F
B) $1,832 U
C) $1,832 F
D) $1,960 U

E) All of the above
F) None of the above

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Milot 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 and the actual results of operations for April. Milot 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 and the actual results of operations for April. When the company prepared its planning budget at the beginning of April, it assumed that 32 wells would have been serviced. However, 29 wells were actually serviced during April. The Servicing materials in the flexible budget for April would have been closest to: A) $16,000 B) $16,662 C) $14,500 D) $15,100 When the company prepared its planning budget at the beginning of April, it assumed that 32 wells would have been serviced. However, 29 wells were actually serviced during April. The "Servicing materials" in the flexible budget for April would have been closest to:


A) $16,000
B) $16,662
C) $14,500
D) $15,100

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

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Prestridge 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 and the actual results of operations for August. Prestridge 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 and the actual results of operations for August. When the company prepared its planning budget at the beginning of August, it assumed that 31 customers would have been served. However, 29 customers were actually served during August. The activity variance for total expenses for August would have been closest to: A) $3,000 U B) $2,500 F C) $3,000 F D) $2,500 U When the company prepared its planning budget at the beginning of August, it assumed that 31 customers would have been served. However, 29 customers were actually served during August. The activity variance for total expenses for August would have been closest to:


A) $3,000 U
B) $2,500 F
C) $3,000 F
D) $2,500 U

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

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Sathre 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. Sathre 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 December, it assumed that 34 wells would have been serviced. However, 32 wells were actually serviced during December. The Employee salaries and wages in the flexible budget for December would have been closest to: A) $87,000 B) $84,600 C) $85,200 D) $89,888 When the company prepared its planning budget at the beginning of December, it assumed that 34 wells would have been serviced. However, 32 wells were actually serviced during December. The "Employee salaries and wages" in the flexible budget for December would have been closest to:


A) $87,000
B) $84,600
C) $85,200
D) $89,888

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

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Dermody Snow Removal's cost formula for its vehicle operating cost is $2,850 per month plus $317 per snow-day. For the month of December, the company planned for activity of 16 snow-days, but the actual level of activity was 14 snow-days. The actual vehicle operating cost for the month was $7,640. The spending variance for vehicle operating cost in December would be closest to:


A) $282 U
B) $282 F
C) $352 U
D) $352 F

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

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Lawes 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 5,000 units, but its actual level of activity was 5,050 units. The company has provided the following data concerning the formulas to be used in its budgeting: Lawes 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 5,000 units, but its actual level of activity was 5,050 units. The company has provided the following data concerning the formulas to be used in its budgeting: The selling and administrative expenses in the planning budget for July would be closest to: A) $20,800 B) $20,805 C) $20,705 D) $20,500 The selling and administrative expenses in the planning budget for July would be closest to:


A) $20,800
B) $20,805
C) $20,705
D) $20,500

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

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Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Actual results for December: The activity variance for administrative expenses in December would be closest to: A) $10 U B) $90 F C) $90 U D) $10 F Actual results for December: Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Actual results for December: The activity variance for administrative expenses in December would be closest to: A) $10 U B) $90 F C) $90 U D) $10 F The activity variance for administrative expenses in December would be closest to:


A) $10 U
B) $90 F
C) $90 U
D) $10 F

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

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Meinke 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 3,700 tenant-days, but its actual level of activity was 3,680 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for April: Data used in budgeting: Meinke 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 3,700 tenant-days, but its actual level of activity was 3,680 tenant-days. The kennel 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 food and supplies in the flexible budget for April would be closest to: A) $54,280 B) $53,992 C) $52,265 D) $51,701 Actual results for April: Meinke 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 3,700 tenant-days, but its actual level of activity was 3,680 tenant-days. The kennel 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 food and supplies in the flexible budget for April would be closest to: A) $54,280 B) $53,992 C) $52,265 D) $51,701 The food and supplies in the flexible budget for April would be closest to:


A) $54,280
B) $53,992
C) $52,265
D) $51,701

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

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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 spending variance for direct materials in March would be closest to: A) $5,630 F B) $6,350 F C) $5,630 U D) $6,350 U 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 spending variance for direct materials in March would be closest to: A) $5,630 F B) $6,350 F C) $5,630 U D) $6,350 U The spending variance for direct materials in March would be closest to:


A) $5,630 F
B) $6,350 F
C) $5,630 U
D) $6,350 U

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

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Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,900 units, but its actual level of activity was 5,850 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,900 units, but its actual level of activity was 5,850 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Actual results for October: The activity variance for net operating income in October would be closest to: A) $680 U B) $680 F C) $1,300 F D) $1,300 U Actual results for October: Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,900 units, but its actual level of activity was 5,850 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Actual results for October: The activity variance for net operating income in October would be closest to: A) $680 U B) $680 F C) $1,300 F D) $1,300 U The activity variance for net operating income in October would be closest to:


A) $680 U
B) $680 F
C) $1,300 F
D) $1,300 U

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

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Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,100 units, but its actual level of activity was 5,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,100 units, but its actual level of activity was 5,050 units. The company 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 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 May would be closest to: A) $3,595 F B) $2,750 F C) $2,750 U D) $3,595 U Actual results for May: Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,100 units, but its actual level of activity was 5,050 units. The company 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 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 May would be closest to: A) $3,595 F B) $2,750 F C) $2,750 U D) $3,595 U 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 May would be closest to:


A) $3,595 F
B) $2,750 F
C) $2,750 U
D) $3,595 U

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

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Korsak 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. Korsak 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. The planning budget for October was based on serving 23 customers, but a total of 19 customers were actually served during October. The activity variance for total expenses for October would have been closest to: A) $6,400 F B) $6,400 U C) $7,900 U D) $7,900 F The planning budget for October was based on serving 23 customers, but a total of 19 customers were actually served during October. The activity variance for total expenses for October would have been closest to:


A) $6,400 F
B) $6,400 U
C) $7,900 U
D) $7,900 F

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

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At Rost Corporation, indirect labor is a variable cost that varies with direct labor-hours. Last month's performance report showed that actual indirect labor cost totaled $7,540 for the month and that the associated spending variance was $560 F. If 10,800 direct labor-hours were actually worked last month, then the flexible budget cost formula for indirect labor must be (per direct labor-hour) closest to:


A) $0.75
B) $0.80
C) $0.85
D) $0.65

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

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Hubbard Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During January, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,060 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Hubbard Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During January, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,060 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Actual results for January: The wages and salaries in the planning budget for January would be closest to: A) $17,282 B) $17,618 C) $17,420 D) $17,132 Actual results for January: Hubbard Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During January, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,060 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Actual results for January: The wages and salaries in the planning budget for January would be closest to: A) $17,282 B) $17,618 C) $17,420 D) $17,132 The wages and salaries in the planning budget for January would be closest to:


A) $17,282
B) $17,618
C) $17,420
D) $17,132

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

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Kolstad Clinic uses patient-visits as its measure of activity. During September, the clinic budgeted for 2,200 patient-visits, but its actual level of activity was 2,600 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits: Revenue: $61.70q Personnel expenses: $39,000 + $16.10q Medical supplies: $1,300 + $11.90q Occupancy expenses: $8,200 + $2.20q Administrative expenses: $5,900 + $0.20q The clinic reported the following actual results for September: Kolstad Clinic uses patient-visits as its measure of activity. During September, the clinic budgeted for 2,200 patient-visits, but its actual level of activity was 2,600 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits: Revenue: $61.70q Personnel expenses: $39,000 + $16.10q Medical supplies: $1,300 + $11.90q Occupancy expenses: $8,200 + $2.20q Administrative expenses: $5,900 + $0.20q The clinic reported the following actual results for September: Required: Prepare a report showing the clinic's revenue and spending variances for September. Label each variance as favorable (F) or unfavorable (U). Required: Prepare a report showing the clinic's revenue and spending variances for September. Label each variance as favorable (F) or unfavorable (U).

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Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Actual results for December: The administrative expenses in the planning budget for December would be closest to: A) $4,210 B) $4,290 C) $4,300 D) $4,296 Actual results for December: Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Actual results for December: The administrative expenses in the planning budget for December would be closest to: A) $4,210 B) $4,290 C) $4,300 D) $4,296 The administrative expenses in the planning budget for December would be closest to:


A) $4,210
B) $4,290
C) $4,300
D) $4,296

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

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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. 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 planning budget for May was based on 36 wells serviced, but a total of 31 wells were actually serviced in May. The activity variance for Employee salaries and wages for May would have been closest to: A) $5,500 F B) $7,500 F C) $5,500 U D) $7,500 U The planning budget for May was based on 36 wells serviced, but a total of 31 wells were actually serviced in May. The activity variance for "Employee salaries and wages" for May would have been closest to:


A) $5,500 F
B) $7,500 F
C) $5,500 U
D) $7,500 U

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

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Scharfenberg 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 and the actual results of operations for March. Scharfenberg 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 and the actual results of operations for March. When the company prepared its planning budget at the beginning of March, it assumed that 23 wells would have been serviced. However, 25 wells were actually serviced during March. The activity variance for Other expenses for March would have been closest to: A) $0 B) $200 F C) $2,712 F D) $200 U When the company prepared its planning budget at the beginning of March, it assumed that 23 wells would have been serviced. However, 25 wells were actually serviced during March. The activity variance for "Other expenses" for March would have been closest to:


A) $0
B) $200 F
C) $2,712 F
D) $200 U

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

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