Filters
Question type
Study Flashcards

Stegemann 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 and the actual results of operations for May. Stegemann 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 and the actual results of operations for May. When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May. The activity variance for total expenses for May would have been closest to: A) $3,600 F B) $3,600 U C) $4,900 U D) $4,900 F When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May. The activity variance for total expenses for May would have been closest to:


A) $3,600 F
B) $3,600 U
C) $4,900 U
D) $4,900 F

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

Correct Answer

verifed

verified

Mandalay Hotel bases its budgets on guest-days. The hotel's static budget for August appears below: Mandalay Hotel bases its budgets on guest-days. The hotel's static budget for August appears below: The total fixed cost at the activity level of 5,500 guest-days per month should be: A) $139,700 B) $190,920 C) $244,200 D) $109,220 The total fixed cost at the activity level of 5,500 guest-days per month should be:


A) $139,700
B) $190,920
C) $244,200
D) $109,220

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

Correct Answer

verifed

verified

Quesnel Clinic bases its budgets on the activity measure patient-visits. During February, the clinic planned for 2,800 patient-visits, but its actual level of activity was 3,000 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting: Quesnel Clinic bases its budgets on the activity measure patient-visits. During February, the clinic planned for 2,800 patient-visits, but its actual level of activity was 3,000 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting: Required: Prepare a report showing the clinic's activity variances for February. Indicate in each case whether the variance is favorable (F) or unfavorable (U). Required: Prepare a report showing the clinic's activity variances for February. Indicate in each case whether the variance is favorable (F) or unfavorable (U).

Correct Answer

verifed

verified

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

A) True
B) False

Correct Answer

verifed

verified

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


A) $1,832 U
B) $128 F
C) $128 U
D) $1,832 F

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

Correct Answer

verifed

verified

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 Servicing materials for May would have been closest to: A) $2,800 U B) $3,000 F C) $2,800 F D) $3,000 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 "Servicing materials" for May would have been closest to:


A) $2,800 U
B) $3,000 F
C) $2,800 F
D) $3,000 U

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

Correct Answer

verifed

verified

Salina Clinic uses patient-visits as its measure of activity. The clinic has provided the following report: Salina Clinic uses patient-visits as its measure of activity. The clinic has provided the following report: Required: Prepare the clinic's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). Required: Prepare the clinic's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U).

Correct Answer

verifed

verified

Thorman 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. Thorman 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 35 customers would have been served. However, 39 customers were actually served during August. Required: Prepare a report showing the company's revenue and spending variances for August. Indicate in each case whether the variance is favorable (F) or unfavorable (U). When the company prepared its planning budget at the beginning of August, it assumed that 35 customers would have been served. However, 39 customers were actually served during August. Required: Prepare a report showing the company's revenue and spending variances for August. Indicate in each case whether the variance is favorable (F) or unfavorable (U).

Correct Answer

verifed

verified

Stegemann 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 and the actual results of operations for May. Stegemann 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 and the actual results of operations for May. When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May. The spending variance for Employee salaries and wages for May would have been closest to: A) $1,700 U B) $4,300 U C) $1,700 F D) $4,300 F When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May. The spending variance for "Employee salaries and wages" for May would have been closest to:


A) $1,700 U
B) $4,300 U
C) $1,700 F
D) $4,300 F

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

Correct Answer

verifed

verified

Trevorrow 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 6,200 units, but its actual level of activity was 6,160 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Trevorrow 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 6,200 units, but its actual level of activity was 6,160 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Actual results for June: 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 June would be closest to: A) $9,256 U B) $9,256 F C) $9,780 U D) $9,780 F Actual results for June: Trevorrow 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 6,200 units, but its actual level of activity was 6,160 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Actual results for June: 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 June would be closest to: A) $9,256 U B) $9,256 F C) $9,780 U D) $9,780 F 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 June would be closest to:


A) $9,256 U
B) $9,256 F
C) $9,780 U
D) $9,780 F

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

Correct Answer

verifed

verified

During September, Ferman Clinic budgeted for 3,800 patient-visits, but its actual level of activity was 4,100 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits: Revenue: $21.60q Personnel expenses: $22,600 + $6.60q Medical supplies: $1,000 + $2.60q Occupancy expenses: $6,000 + $0.90q Administrative expenses: $4,300 + $0.30q Required: Prepare the clinic's flexible budget for September based on the actual level of activity for the month.

Correct Answer

verifed

verified

Buckson Framing's cost formula for its supplies cost is $1,350 per month plus $18 per frame. For the month of June, the company planned for activity of 716 frames, but the actual level of activity was 713 frames. The actual supplies cost for the month was $14,820. The supplies cost in the flexible budget for June would be closest to:


A) $14,820
B) $14,184
C) $14,178
D) $14,238

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

Correct Answer

verifed

verified

Tomlison 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 5,100 units, but its actual level of activity was 5,150 units. The company has provided the following data concerning the formulas to be used in its budgeting: Tomlison 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 5,100 units, but its actual level of activity was 5,150 units. The company has provided the following data concerning the formulas to be used in its budgeting: The direct materials in the flexible budget for October would be closest to: A) $79,310 B) $78,540 C) $79,239 D) $77,708 The direct materials in the flexible budget for October would be closest to:


A) $79,310
B) $78,540
C) $79,239
D) $77,708

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

Correct Answer

verifed

verified

Schoening 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 and the actual results of operations for January. Schoening 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 and the actual results of operations for January. When the company prepared its planning budget at the beginning of January, it assumed that 40 containers would have been refurbished. However, 38 containers were actually refurbished during January. The total expenses in the flexible budget for January would have been closest to: A) $160,500 B) $160,200 C) $163,800 D) $168,947 When the company prepared its planning budget at the beginning of January, it assumed that 40 containers would have been refurbished. However, 38 containers were actually refurbished during January. The total expenses in the flexible budget for January would have been closest to:


A) $160,500
B) $160,200
C) $163,800
D) $168,947

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

Correct Answer

verifed

verified

Medlar Corporation's static planning budget for June appears below. The company bases its budgets on machine-hours. Medlar Corporation's static planning budget for June appears below. The company bases its budgets on machine-hours. In June, the actual number of machine-hours was 9,300, the actual supplies cost was $19,760, the actual power cost was $35,720, the actual salaries cost was $27,130, and the actual equipment depreciation was $39,430. The spending variance for supplies cost in the flexible budget performance report for the month should be: A) $180 U B) $700 U C) $700 F D) $180 F In June, the actual number of machine-hours was 9,300, the actual supplies cost was $19,760, the actual power cost was $35,720, the actual salaries cost was $27,130, and the actual equipment depreciation was $39,430. The spending variance for supplies cost in the flexible budget performance report for the month should be:


A) $180 U
B) $700 U
C) $700 F
D) $180 F

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

Correct Answer

verifed

verified

Groupe 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 $48,840 per month plus $2,381 per flight plus $7 per passenger. The company expected its activity in October to be 63 flights and 293 passengers, but the actual activity was 61 flights and 298 passengers. The actual cost for plane operating costs in October was $199,070. The activity variance for plane operating costs in October would be closest to:


A) $1,824 F
B) $1,824 U
C) $4,727 U
D) $4,727 F

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

Correct Answer

verifed

verified

Benjamin 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. Benjamin 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 March, it assumed that 26 containers would have been refurbished. However, 23 containers were actually refurbished during March. The amount shown for Refurbishing materials in the planning budget for March would have been closest to: A) $16,700 B) $18,200 C) $18,878 D) $16,100 When the company prepared its planning budget at the beginning of March, it assumed that 26 containers would have been refurbished. However, 23 containers were actually refurbished during March. The amount shown for "Refurbishing materials" in the planning budget for March would have been closest to:


A) $16,700
B) $18,200
C) $18,878
D) $16,100

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

Correct Answer

verifed

verified

Piechocki 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 5,900 units, but its actual level of activity was 5,940 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: Piechocki 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 5,900 units, but its actual level of activity was 5,940 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 activity variance for direct labor in May would be closest to: A) $156 U B) $156 F C) $224 F D) $224 U Actual results for May: Piechocki 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 5,900 units, but its actual level of activity was 5,940 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 activity variance for direct labor in May would be closest to: A) $156 U B) $156 F C) $224 F D) $224 U The activity variance for direct labor in May would be closest to:


A) $156 U
B) $156 F
C) $224 F
D) $224 U

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

Correct Answer

verifed

verified

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 flexible budget for August would be closest to:


A) $265,943
B) $255,690
C) $267,422
D) $257,984

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

Correct Answer

verifed

verified

Tennies Clinic uses client-visits as its measure of activity. During November, 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 November: Data used in budgeting: Tennies Clinic uses client-visits as its measure of activity. During November, 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 November: Data used in budgeting: Actual results for November: The activity variance for personnel expenses in November would be closest to: A) $104 F B) $104 U C) $134 F D) $134 U Actual results for November: Tennies Clinic uses client-visits as its measure of activity. During November, 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 November: Data used in budgeting: Actual results for November: The activity variance for personnel expenses in November would be closest to: A) $104 F B) $104 U C) $134 F D) $134 U The activity variance for personnel expenses in November would be closest to:


A) $104 F
B) $104 U
C) $134 F
D) $134 U

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

Correct Answer

verifed

verified

Showing 21 - 40 of 417

Related Exams

Exam 1

Managerial Accounting and Cost Concepts

299 Questions

Exam 2

Costvolumeprofit Relationships

260 Questions

Exam 3

Joborder Costing: Calculating Unit Product Costs

292 Questions

Exam 4

Variable Costing and Segment Reporting: Tools for Management

291 Questions

Exam 5

Activitybased Costing: a Tool to Aid Decision Making

213 Questions

Exam 6

Differential Analysis: the Key to Decision Making

203 Questions

Exam 7

Capital Budgeting Decisions

179 Questions

Exam 8

Master Budgeting

236 Questions

Exam 10

Standard Costs and Variances

247 Questions

Exam 11

Performance Measurement in Decentralized Organizations

180 Questions

Exam 12

Cost of Quality

66 Questions

Exam 13

Analyzing Mixed Costs

82 Questions

Exam 14

Activity-Based Absorption Costing

20 Questions

Exam 15

the Predetermined Overhead Rate and Capacity

42 Questions

Exam 16

Super-Variable Costing

49 Questions

Exam 17

Time-Driven Activity-Based Costing: a Microsoft Excel-Based Approach

123 Questions

Exam 18

Pricing Decisions

149 Questions

Exam 19

the Concept of Present Value

16 Questions

Exam 20

Income Taxes and the Net Present Value Method

150 Questions

Exam 21

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

177 Questions

Exam 22

Transfer Pricing

102 Questions

Exam 22

Service Department Charges

44 Questions

Show Answer