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Bracken Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,140 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: Bracken Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,140 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 revenue variance for September would be closest to: A) $210 U B) $1,990 F C) $1,990 U D) $210 F Actual results for September: Bracken Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,140 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 revenue variance for September would be closest to: A) $210 U B) $1,990 F C) $1,990 U D) $210 F The revenue variance for September would be closest to:


A) $210 U
B) $1,990 F
C) $1,990 U
D) $210 F

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

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Knapper 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 2,700 tenant-days, but its actual level of activity was 2,740 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: Knapper 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 2,700 tenant-days, but its actual level of activity was 2,740 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: The facility expenses in the flexible budget for January would be closest to: A) $22,660 B) $21,996 C) $22,653 D) $22,852 The facility expenses in the flexible budget for January would be closest to:


A) $22,660
B) $21,996
C) $22,653
D) $22,852

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

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Isadore Hospital bases its budgets on patient-visits. The hospital's static planning budget for July appears below: Isadore Hospital bases its budgets on patient-visits. The hospital's static planning budget for July appears below: Actual results for the month were: The spending variance for occupancy costs in the flexible budget performance report for the month is: A) $2,110 U B) $2,990 U C) $2,990 F D) $2,110 F Actual results for the month were: Isadore Hospital bases its budgets on patient-visits. The hospital's static planning budget for July appears below: Actual results for the month were: The spending variance for occupancy costs in the flexible budget performance report for the month is: A) $2,110 U B) $2,990 U C) $2,990 F D) $2,110 F The spending variance for occupancy costs in the flexible budget performance report for the month is:


A) $2,110 U
B) $2,990 U
C) $2,990 F
D) $2,110 F

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

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


A) $534,920
B) $558,610
C) $536,200
D) $560,028

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

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Dreckman 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. Dreckman 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 36 customers would have been served. However, 31 customers were actually served during August.The Other expenses in the flexible budget for August would have been closest to: A) $33,500 B) $38,903 C) $28,847 D) $33,100 When the company prepared its planning budget at the beginning of August, it assumed that 36 customers would have been served. However, 31 customers were actually served during August.The "Other expenses" in the flexible budget for August would have been closest to:


A) $33,500
B) $38,903
C) $28,847
D) $33,100

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

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Prowse Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Prowse Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. A total of 42 wells were actually serviced during October.The Servicing materials in the flexible budget for October would have been closest to: A) $25,200 B) $24,900 C) $22,200 D) $21,936 A total of 42 wells were actually serviced during October.The "Servicing materials" in the flexible budget for October would have been closest to:


A) $25,200
B) $24,900
C) $22,200
D) $21,936

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

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Petrus Framing's cost formula for its supplies cost is $2,300 per month plus $6 per frame. For the month of March, the company planned for activity of 861 frames, but the actual level of activity was 856 frames. The actual supplies cost for the month was $7,790. The activity variance for supplies cost in March would be closest to:


A) $324 U
B) $30 F
C) $324 F
D) $30 U

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

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Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,000 client-visits, but its actual level of activity was 2,010 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,000 client-visits, but its actual level of activity was 2,010 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 July would be closest to: A) $2 U B) $162 F C) $2 F D) $162 U The activity variance for administrative expenses in July would be closest to:


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

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

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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 revenue for October would have been closest to: A) $22,000 U B) $20,400 U C) $22,000 F D) $20,400 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 revenue for October would have been closest to:


A) $22,000 U
B) $20,400 U
C) $22,000 F
D) $20,400 F

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

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Hallet 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 5,800 units, but its actual level of activity was 5,830 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: Hallet 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 5,800 units, but its actual level of activity was 5,830 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 direct labor in the planning budget for May would be closest to: A) $19,720 B) $19,770 C) $19,872 D) $19,822 Actual results for May: Hallet 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 5,800 units, but its actual level of activity was 5,830 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 direct labor in the planning budget for May would be closest to: A) $19,720 B) $19,770 C) $19,872 D) $19,822 The direct labor in the planning budget for May would be closest to:


A) $19,720
B) $19,770
C) $19,872
D) $19,822

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

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In a flexible budget, when the activity declines, the total variable cost also declines.

A) True
B) False

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

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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 direct labor in October would be closest to: A) $280 U B) $280 F C) $1,530 U D) $1,530 F 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 direct labor in October would be closest to: A) $280 U B) $280 F C) $1,530 U D) $1,530 F The activity variance for direct labor in October would be closest to:


A) $280 U
B) $280 F
C) $1,530 U
D) $1,530 F

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

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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 plane operating costs in the planning budget for August would be closest to:


A) $255,690
B) $257,984
C) $265,943
D) $246,666

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

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Courington Detailing's cost formula for its materials and supplies is $2,420 per month plus $9 per vehicle. For the month of August, the company planned for activity of 63 vehicles, but the actual level of activity was 33 vehicles. The actual materials and supplies for the month was $2,840.The materials and supplies in the planning budget for August would be closest to:


A) $5,422
B) $2,840
C) $2,987
D) $2,717

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

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Malander 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 November, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,390 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:Data used in budgeting: Malander 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 November, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,390 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:Data used in budgeting: Actual results for November: The revenue variance for November would be closest to: A) $4,450 F B) $4,730 U C) $4,730 F D) $4,450 U Actual results for November: Malander 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 November, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,390 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:Data used in budgeting: Actual results for November: The revenue variance for November would be closest to: A) $4,450 F B) $4,730 U C) $4,730 F D) $4,450 U The revenue variance for November would be closest to:


A) $4,450 F
B) $4,730 U
C) $4,730 F
D) $4,450 U

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 occupancy expenses in the flexible budget for December would be closest to: A) $13,720 B) $14,410 C) $14,500 D) $14,286 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 occupancy expenses in the flexible budget for December would be closest to: A) $13,720 B) $14,410 C) $14,500 D) $14,286 The occupancy expenses in the flexible budget for December would be closest to:


A) $13,720
B) $14,410
C) $14,500
D) $14,286

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

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Ekholm Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Ekholm Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. When the company prepared its planning budget at the beginning of December, it assumed that 30 containers would have been refurbished. However, 35 containers were actually refurbished during December.The activity variance for Employee salaries and wages for December would have been closest to: A) $5,000 U B) $5,000 F C) $4,000 U D) $4,000 F When the company prepared its planning budget at the beginning of December, it assumed that 30 containers would have been refurbished. However, 35 containers were actually refurbished during December.The activity variance for "Employee salaries and wages" for December would have been closest to:


A) $5,000 U
B) $5,000 F
C) $4,000 U
D) $4,000 F

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

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Morles Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting: Morles Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting: In May, the company budgeted for 407 guests and 113 jeeps. The company's income statement showing the actual results for the month appears below: Required:Prepare a flexible budget performance report showing both the company's activity variances and revenue and spending variances for May. Label each variance as favorable (F) or unfavorable (U). In May, the company budgeted for 407 guests and 113 jeeps. The company's income statement showing the actual results for the month appears below: Morles Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting: In May, the company budgeted for 407 guests and 113 jeeps. The company's income statement showing the actual results for the month appears below: Required:Prepare a flexible budget performance report showing both the company's activity variances and revenue and spending variances for May. Label each variance as favorable (F) or unfavorable (U). Required:Prepare a flexible budget performance report showing both the company's activity variances and revenue and spending variances for May. Label each variance as favorable (F) or unfavorable (U).

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Rients 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 October. Rients 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 October. When the company prepared its planning budget at the beginning of October, it assumed that 39 customers would have been served. However, 44 customers were actually served during October.The variance for net operating income in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for October would have been closest to: A) $3,100 U B) $13,600 U C) $3,100 F D) $13,600 F When the company prepared its planning budget at the beginning of October, it assumed that 39 customers would have been served. However, 44 customers were actually served during October.The variance for net operating income in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for October would have been closest to:


A) $3,100 U
B) $13,600 U
C) $3,100 F
D) $13,600 F

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

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