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Moncrief Corporation bases its budgets on machine-hours. The company's static planning budget for July appears below: Moncrief Corporation bases its budgets on machine-hours. The company's static planning budget for July appears below: Actual results for the month were: The spending variance for power costs in the flexible budget performance report for the month should be: A) $2,060 F B) $2,060 U C) $300 F D) $300 U Actual results for the month were: Moncrief Corporation bases its budgets on machine-hours. The company's static planning budget for July appears below: Actual results for the month were: The spending variance for power costs in the flexible budget performance report for the month should be: A) $2,060 F B) $2,060 U C) $300 F D) $300 U The spending variance for power costs in the flexible budget performance report for the month should be:


A) $2,060 F
B) $2,060 U
C) $300 F
D) $300 U

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

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Leist Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,170 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Leist Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,170 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: The net operating income in the flexible budget for September would be closest to: A) $9,661 B) $5,367 C) $5,516 D) $10,360 The net operating income in the flexible budget for September would be closest to:


A) $9,661
B) $5,367
C) $5,516
D) $10,360

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

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Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,250 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:Data used in budgeting: Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,250 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:Data used in budgeting: Actual results for February: The revenue variance for February would be closest to: A) $2,760 U B) $2,760 F C) $6,170 U D) $6,170 F Actual results for February: Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,250 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:Data used in budgeting: Actual results for February: The revenue variance for February would be closest to: A) $2,760 U B) $2,760 F C) $6,170 U D) $6,170 F The revenue variance for February would be closest to:


A) $2,760 U
B) $2,760 F
C) $6,170 U
D) $6,170 F

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

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Dermody Snow Removal's cost formula for its vehicle operating cost is $3,010 per month plus $331 per snow-day. For the month of December, the company planned for activity of 13 snow-days, but the actual level of activity was 15 snow-days. The actual vehicle operating cost for the month was $7,585. The spending variance for vehicle operating cost in December would be closest to:


A) $272 U
B) $272 F
C) $390 F
D) $390 U

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

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Standahl 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 $39,590 per month plus $2,649 per flight plus $4 per passenger. The company expected its activity in August to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers. The actual cost for plane operating costs in August was $255,690.The activity variance for plane operating costs in August would be closest to:


A) $2,294 F
B) $7,959 U
C) $7,959 F
D) $2,294 U

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

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Neeb Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 7,000 units, but its actual level of activity was 7,040 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting: Neeb Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 7,000 units, but its actual level of activity was 7,040 units. The company 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 direct labor in the planning budget for January would be closest to: A) $22,400 B) $23,178 C) $22,528 D) $23,046 Actual results for January: Neeb Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 7,000 units, but its actual level of activity was 7,040 units. The company 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 direct labor in the planning budget for January would be closest to: A) $22,400 B) $23,178 C) $22,528 D) $23,046 The direct labor in the planning budget for January would be closest to:


A) $22,400
B) $23,178
C) $22,528
D) $23,046

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

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Sharifi Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below: Sharifi 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) $245,850 B) $237,170 C) $232,180 D) $223,500 The total overhead cost at an activity level of 7,700 patient-visits per month should be:


A) $245,850
B) $237,170
C) $232,180
D) $223,500

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

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Pittman Framing's cost formula for its supplies cost is $1,150 per month plus $11 per frame. For the month of November, the company planned for activity of 789 frames, but the actual level of activity was 792 frames. The actual supplies cost for the month was $9,480. The spending variance for supplies cost in November would be closest to:


A) $349 F
B) $382 U
C) $382 F
D) $349 U

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

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During October, Fryer Corporation budgeted for 30,000 customers, but actually served 33,000 customers. Revenue should be $2.90 per customer served. Wages and salaries should be $27,200 per month plus $0.80 per customer served. Supplies should be $0.60 per customer served. Insurance should be $6,700 per month. Miscellaneous expenses should be $3,100 per month plus $0.10 per customer served.Required:Prepare the company's flexible budget for October based on the actual level of activity for the month.

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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 spending variance for total expenses for August would have been closest to: A) $2,500 U B) $2,500 F C) $500 F D) $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 spending variance for total expenses for August would have been closest to:


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

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

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Ginnings Corporation bases its budgets on the activity measure customers served. During May, the company planned to serve 38,000 customers, but actually served 37,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:Revenue: $2.90qWages and salaries: $37,200 + $0.80qSupplies: $0.40qInsurance: $8,900Miscellaneous expense: $6,400 + $0.10qRequired:Prepare a report showing the company's activity variances for May. Indicate in each case whether the variance is favorable (F) or unfavorable (U).

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Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35,200 customers, but actually served 32,800 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:Revenue: $3.70qWages and salaries: $33,400 + $1.16qSupplies: $0.56qInsurance: $10,600Miscellaneous expenses: $6,600 + $0.32qThe company reported the following actual results for February: Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35,200 customers, but actually served 32,800 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:Revenue: $3.70qWages and salaries: $33,400 + $1.16qSupplies: $0.56qInsurance: $10,600Miscellaneous expenses: $6,600 + $0.32qThe company reported the following actual results for February: Required:Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). Required:Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U).

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


A) $3,342
B) $5,302
C) $3,470
D) $11,181

E) A) 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: $50.40qPersonnel expenses: $36,200 + $15.60qMedical supplies: $1,500 + $8.80qOccupancy expenses: $8,700 + $2.80qAdministrative expenses: $4,300 + $0.40qThe 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: $50.40qPersonnel expenses: $36,200 + $15.60qMedical supplies: $1,500 + $8.80qOccupancy expenses: $8,700 + $2.80qAdministrative expenses: $4,300 + $0.40qThe 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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Paulis 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 3,880 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:Data used in budgeting: Paulis 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 3,880 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:Data used in budgeting: Actual results for February: The activity variance for net operating income in February would be closest to: A) $2,723 F B) $180 U C) $180 F D) $2,723 U Actual results for February: Paulis 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 3,880 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:Data used in budgeting: Actual results for February: The activity variance for net operating income in February would be closest to: A) $2,723 F B) $180 U C) $180 F D) $2,723 U The activity variance for net operating income in February would be closest to:


A) $2,723 F
B) $180 U
C) $180 F
D) $2,723 U

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

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Lochner 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 June. Lochner 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 June. When the company prepared its planning budget at the beginning of June, it assumed that 24 wells would have been serviced. However, 26 wells were actually serviced during June.The revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for June would have been closest to: A) $2,400 U B) $13,600 U C) $2,400 F D) $13,600 F When the company prepared its planning budget at the beginning of June, it assumed that 24 wells would have been serviced. However, 26 wells were actually serviced during June.The revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for June would have been closest to:


A) $2,400 U
B) $13,600 U
C) $2,400 F
D) $13,600 F

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

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Ruozzo 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 July. Ruozzo 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 July. When the company prepared its planning budget at the beginning of July, it assumed that 27 customers would have been served. However, 22 customers were actually served during July.The spending variance for Travel expenses for July would have been closest to: A) $2,000 F B) $2,000 U C) $500 F D) $500 U When the company prepared its planning budget at the beginning of July, it assumed that 27 customers would have been served. However, 22 customers were actually served during July.The spending variance for "Travel expenses" for July would have been closest to:


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

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

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Kekiwi Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 6,900 units, but its actual level of activity was 6,910 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting: Kekiwi Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 6,900 units, but its actual level of activity was 6,910 units. The company 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 direct materials in the flexible budget for January would be closest to: A) $130,599 B) $134,694 C) $130,410 D) $135,084 Actual results for January: Kekiwi Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 6,900 units, but its actual level of activity was 6,910 units. The company 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 direct materials in the flexible budget for January would be closest to: A) $130,599 B) $134,694 C) $130,410 D) $135,084 The direct materials in the flexible budget for January would be closest to:


A) $130,599
B) $134,694
C) $130,410
D) $135,084

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

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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 spending variance for facility expenses in March would be closest to: A) $78 F B) $170 U C) $78 U D) $170 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 spending variance for facility expenses in March would be closest to: A) $78 F B) $170 U C) $78 U D) $170 F The spending variance for facility expenses in March would be closest to:


A) $78 F
B) $170 U
C) $78 U
D) $170 F

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

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Ocean Corporation uses customers served as its measure of activity. During June, the company budgeted for 21,000 customers, but actually served 19,000 customers. The company bases its budgets on the following information: Revenue should be $5.00 per customer served. Wages and salaries should be $24,900 per month plus $1.80 per customer served. Supplies should be $0.90 per customer served. Insurance should be $6,500 per month. Miscellaneous expenses should be $3,500 per month plus $0.40 per customer served. The company reported the following actual results for June: Ocean Corporation uses customers served as its measure of activity. During June, the company budgeted for 21,000 customers, but actually served 19,000 customers. The company bases its budgets on the following information: Revenue should be $5.00 per customer served. Wages and salaries should be $24,900 per month plus $1.80 per customer served. Supplies should be $0.90 per customer served. Insurance should be $6,500 per month. Miscellaneous expenses should be $3,500 per month plus $0.40 per customer served. The company reported the following actual results for June: Required:Prepare the company's flexible budget performance report for June. Label each variance as favorable (F) or unfavorable (U). Required:Prepare the company's flexible budget performance report for June. Label each variance as favorable (F) or unfavorable (U).

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