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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 8,200 units, but its actual level of activity was 8,250 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 8,200 units, but its actual level of activity was 8,250 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 spending variance for direct materials in May would be closest to: A) $6,060 U B) $6,660 F C) $6,660 U D) $6,060 F 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 8,200 units, but its actual level of activity was 8,250 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 spending variance for direct materials in May would be closest to: A) $6,060 U B) $6,660 F C) $6,660 U D) $6,060 F The spending variance for direct materials in May would be closest to:


A) $6,060 U
B) $6,660 F
C) $6,660 U
D) $6,060 F

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

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The activity variance for revenue is favorable if the actual revenue for the period exceeds the revenue in the static planning budget.

A) True
B) False

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A spending variance is the difference between the amount of the cost in the static planning budget and the amount of the cost in the flexible budget.

A) True
B) False

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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 5,300 tenant-days, but its actual level of activity was 5,320 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 5,300 tenant-days, but its actual level of activity was 5,320 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 net operating income in the planning budget for February would be closest to: A) $10,200 B) $20,007 C) $10,320 D) $20,101 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 5,300 tenant-days, but its actual level of activity was 5,320 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 net operating income in the planning budget for February would be closest to: A) $10,200 B) $20,007 C) $10,320 D) $20,101 The net operating income in the planning budget for February would be closest to:


A) $10,200
B) $20,007
C) $10,320
D) $20,101

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

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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 spending variance for medical supplies in December would be closest to: A) $720 F B) $450 U C) $720 U D) $450 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 spending variance for medical supplies in December would be closest to: A) $720 F B) $450 U C) $720 U D) $450 F The spending variance for medical supplies in December would be closest to:


A) $720 F
B) $450 U
C) $720 U
D) $450 F

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

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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 B)

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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) C) and D)

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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 flexible budget for August would be closest to:


A) $1,565
B) $2,717
C) $2,987
D) $2,840

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

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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 activity variance for net operating income for July would have been closest to: A) $16,400 F B) $15,500 F C) $15,500 U D) $16,400 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 activity variance for net operating income for July would have been closest to:


A) $16,400 F
B) $15,500 F
C) $15,500 U
D) $16,400 U

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

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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 revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for January would have been closest to: A) $5,400 U B) $2,800 U C) $5,400 F D) $2,800 F 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 revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for January would have been closest to:


A) $5,400 U
B) $2,800 U
C) $5,400 F
D) $2,800 F

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

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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 food and supplies in the flexible budget for January would be closest to: A) $41,726 B) $42,243 C) $41,018 D) $41,130 The food and supplies in the flexible budget for January would be closest to:


A) $41,726
B) $42,243
C) $41,018
D) $41,130

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

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

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Bickel Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of November: Bickel Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of November: Required:Prepare the company's flexible budget performance report for November. Label each variance as favorable (F) or unfavorable (U). Required:Prepare the company's flexible budget performance report for November. Label each variance as favorable (F) or unfavorable (U).

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Bruer 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: Bruer 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 November, the company budgeted for 348 guests and 143 jeeps. The actual activity for the month was 373 guests and 139 jeeps.Required:Prepare a report showing the company's activity variances for November. Label each variance as favorable (F) or unfavorable (U). In November, the company budgeted for 348 guests and 143 jeeps. The actual activity for the month was 373 guests and 139 jeeps.Required:Prepare a report showing the company's activity variances for November. Label each variance as favorable (F) or unfavorable (U).

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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 D)
F) All of the above

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Wagster Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for November was based on 2,400 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.05 per meal; kitchen operations, $4,500 per month plus $1.75 per meal; administrative expenses, $3,500 per month plus $0.20 per meal; and fundraising expenses, $1,700 per month. The director has also provided the diner's statement of actual expenses for the month: Wagster Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for November was based on 2,400 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.05 per meal; kitchen operations, $4,500 per month plus $1.75 per meal; administrative expenses, $3,500 per month plus $0.20 per meal; and fundraising expenses, $1,700 per month. The director has also provided the diner's statement of actual expenses for the month: Required:Prepare a flexible budget performance report showing both the activity variances and the spending variances for each of the expenses and for total expenses for November. Label each variance as favorable (F) or unfavorable (U). Required:Prepare a flexible budget performance report showing both the activity variances and the spending variances for each of the expenses and for total expenses for November. Label each variance as favorable (F) or unfavorable (U).

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Courington Detailing's cost formula for its materials and supplies is $2,040 per month plus $9 per vehicle. For the month of August, the company planned for activity of 99 vehicles, but the actual level of activity was 59 vehicles. The actual materials and supplies for the month was $2,890.The spending variance for materials and supplies in August would be closest to:


A) $319 F
B) $41 F
C) $319 U
D) $41 U

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

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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 spending variance for total expenses for October would have been closest to: A) $600 F B) $9,400 U C) $600 U D) $9,400 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 spending variance for total expenses for October would have been closest to:


A) $600 F
B) $9,400 U
C) $600 U
D) $9,400 F

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

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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 selling and administrative expenses in the planning budget for March would be closest to: A) $31,330 B) $31,350 C) $31,950 D) $32,113 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 selling and administrative expenses in the planning budget for March would be closest to: A) $31,330 B) $31,350 C) $31,950 D) $32,113 The selling and administrative expenses in the planning budget for March would be closest to:


A) $31,330
B) $31,350
C) $31,950
D) $32,113

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

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