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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 B)
F) B) and D)

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Lubinsky 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. Lubinsky 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 August,it assumed that 28 wells would have been serviced.However,31 wells were actually serviced during August. Required: Prepare a report showing the company's activity 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 28 wells would have been serviced.However,31 wells were actually serviced during August. Required: Prepare a report showing the company's activity variances for August.Indicate in each case whether the variance is favorable (F)or unfavorable (U).

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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 medical supplies in the flexible budget for November would be closest to: A) $20,340 B) $20,282 C) $21,008 D) $21,136 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 medical supplies in the flexible budget for November would be closest to: A) $20,340 B) $20,282 C) $21,008 D) $21,136 -The medical supplies in the flexible budget for November would be closest to:


A) $20,340
B) $20,282
C) $21,008
D) $21,136

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

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Kirnon Catering uses two measures of activity,jobs and meals,in the cost formulas in its budgets and performance reports.The cost formula for catering supplies is $300 per month plus $114 per job plus $16 per meal.A typical job involves serving a number of meals to guests at a corporate function or at a host's home.The company expected its activity in October to be 27 jobs and 224 meals,but the actual activity was 29 jobs and 227 meals.The actual cost for catering supplies in October was $7,500.The activity variance for catering supplies in October would be closest to:


A) $276 F
B) $276 U
C) $538 U
D) $538 F

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

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Ostler Hotel bases its budgets on guest-days.The hotel's static budget for April appears below: Ostler Hotel bases its budgets on guest-days.The hotel's static budget for April appears below: The total overhead cost at an activity level of 9,700 guest-days per month should be: A) $213,150 B) $237,650 C) $223,950 D) $224,920 The total overhead cost at an activity level of 9,700 guest-days per month should be:


A) $213,150
B) $237,650
C) $223,950
D) $224,920

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

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Palmerton 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 December. Palmerton 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 December. When the company prepared its planning budget at the beginning of December,it assumed that 40 wells would have been serviced.However,45 wells were actually serviced during December. The variance for net operating income in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for December would have been closest to: A) $10,500 F B) $10,500 U C) $1,000 F D) $1,000 U When the company prepared its planning budget at the beginning of December,it assumed that 40 wells would have been serviced.However,45 wells were actually serviced during December. The variance for net operating income in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for December would have been closest to:


A) $10,500 F
B) $10,500 U
C) $1,000 F
D) $1,000 U

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

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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) None of the above
F) All of the above

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Smith 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 February. Smith 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 February. When the company prepared its planning budget at the beginning of February,it assumed that 31 containers would have been refurbished.However,26 containers were actually refurbished during February. Required: Prepare a report showing the company's revenue and spending variances for February.Indicate in each case whether the variance is favorable (F)or unfavorable (U). When the company prepared its planning budget at the beginning of February,it assumed that 31 containers would have been refurbished.However,26 containers were actually refurbished during February. Required: Prepare a report showing the company's revenue and spending variances for February.Indicate in each case whether the variance is favorable (F)or unfavorable (U).

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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. The number of wells serviced in the planning budget is missing from the given information - this information is necessary to complete the calculations in the subsequent questions. 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 number of wells serviced in the planning budget is missing from the given information - this information is necessary to complete the calculations in the subsequent questions. The planning budget for May was based on 36 wells serviced, but aA total of 31 wells were actually serviced during May. -The activity variance for revenue for May would have been closest to: A) $22,500 F B) $20,300 F C) $22,500 U D) $20,300 U The planning budget for May was based on 36 wells serviced, but aA total of 31 wells were actually serviced during May. -The activity variance for revenue for May would have been closest to:


A) $22,500 F
B) $20,300 F
C) $22,500 U
D) $20,300 U

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

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

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Keisker Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,190 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: Keisker Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,190 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 spending variance for occupancy expenses in November would be closest to: A) $530 U B) $510 F C) $510 U D) $530 F Actual results for November: Keisker Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,190 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 spending variance for occupancy expenses in November would be closest to: A) $530 U B) $510 F C) $510 U D) $530 F -The spending variance for occupancy expenses in November would be closest to:


A) $530 U
B) $510 F
C) $510 U
D) $530 F

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

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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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During April,Shvey Clinic plans for an activity level of 2,100 patient-visits.Revenue is $48.10 per patient-visit.Personnel expenses are $28,800 per month plus $12.30 per patient-visit.Medical supplies are $1,300 per month plus $8.10 per patient-visit.Occupancy expenses are $8,100 per month plus $2.00 per patient-visit.Administrative expenses are $2,900 per month plus $0.20 per patient-visit. Required: Prepare the clinic's planning budget for April.

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Manter 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 6,900 units, but its actual level of activity was 6,940 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: Manter 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 6,900 units, but its actual level of activity was 6,940 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 activity variance for direct labor in June would be closest to: A) $200 U B) $200 F C) $490 U D) $490 F Actual results for June: Manter 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 6,900 units, but its actual level of activity was 6,940 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 activity variance for direct labor in June would be closest to: A) $200 U B) $200 F C) $490 U D) $490 F -The activity variance for direct labor in June would be closest to:


A) $200 U
B) $200 F
C) $490 U
D) $490 F

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

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Vondran Clinic uses patient-visits as its measure of activity.During December,the clinic budgeted for 3,600 patient-visits,but its actual level of activity was 3,100 patient-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: Vondran Clinic uses patient-visits as its measure of activity.During December,the clinic budgeted for 3,600 patient-visits,but its actual level of activity was 3,100 patient-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: Required: Prepare the clinic's flexible budget performance report for December.Label each variance as favorable (F)or unfavorable (U). Actual results for December: Vondran Clinic uses patient-visits as its measure of activity.During December,the clinic budgeted for 3,600 patient-visits,but its actual level of activity was 3,100 patient-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: Required: Prepare the clinic's flexible budget performance report for December.Label each variance as favorable (F)or unfavorable (U). Required: Prepare the clinic's flexible budget performance report for December.Label each variance as favorable (F)or unfavorable (U).

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Laizure Clinic uses patient-visits as its measure of activity.The clinic bases its budgets on the following information: Revenue should be $55.90 per patient-visit.Personnel expenses should be $35,700 per month plus $15.80 per patient-visit.Medical supplies should be $2,000 per month plus $11.20 per patient-visit.Occupancy expenses should be $8,400 per month plus $2.00 per patient-visit.Administrative expenses should be $3,900 per month plus $0.10 per patient-visit. The clinic reported the following actual results for November: Laizure Clinic uses patient-visits as its measure of activity.The clinic bases its budgets on the following information: Revenue should be $55.90 per patient-visit.Personnel expenses should be $35,700 per month plus $15.80 per patient-visit.Medical supplies should be $2,000 per month plus $11.20 per patient-visit.Occupancy expenses should be $8,400 per month plus $2.00 per patient-visit.Administrative expenses should be $3,900 per month plus $0.10 per patient-visit. The clinic reported the following actual results for November: Required: Prepare a report showing the clinic's revenue and spending variances for November.Label each variance as favorable (F)or unfavorable (U). Required: Prepare a report showing the clinic's revenue and spending variances for November.Label each variance as favorable (F)or unfavorable (U).

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Kaina Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 2,970 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Kaina Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 2,970 client-visits. The clinic 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 personnel expenses in May would be closest to: A) $213 U B) $213 F C) $1,147 U D) $1,147 F Actual results for May: Kaina Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 2,970 client-visits. The clinic 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 personnel expenses in May would be closest to: A) $213 U B) $213 F C) $1,147 U D) $1,147 F -The activity variance for personnel expenses in May would be closest to:


A) $213 U
B) $213 F
C) $1,147 U
D) $1,147 F

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

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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 Other expenses in the planning budget for March would have been closest to: A) $30,600 B) $31,200 C) $34,591 D) $30,900 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 "Other expenses" in the planning budget for March would have been closest to:


A) $30,600
B) $31,200
C) $34,591
D) $30,900

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

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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 C)
F) C) and D)

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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 equipment depreciation in the flexible budget performance report for the month should be: A) $1,890 U B) $90 F C) $90 U D) $1,890 F 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 equipment depreciation in the flexible budget performance report for the month should be: A) $1,890 U B) $90 F C) $90 U D) $1,890 F -The spending variance for equipment depreciation in the flexible budget performance report for the month should be:


A) $1,890 U
B) $90 F
C) $90 U
D) $1,890 F

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

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