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Exam 9: Flexible Budgets Standard Costs and Variance Analysis

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Question 191

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The administrative expenses in the planning budget for September would be closest to:

A) $5,400
B) $5,346
C) $5,405
D) $5,435

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

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Question 192

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The variable overhead efficiency variance measures the difference between the actual level of activity and the standard activity allowed for the actual output, multiplied by the fixed part of the predetermined overhead rate.

A) True
B) False

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Question 193

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During December, Hynes Corporation plans to serve 35,000 customers.Revenue is $2.00 per customer served.Wages and salaries are $24,600 per month plus $0.50 per customer served.Supplies are $0.30 per customer served.Insurance is $5,400 per month.Miscellaneous expenses are $4,100 per month plus $0.10 per customer served. Required: Prepare the company's planning budget for December.

The variable overhead rate variance for October is:

The labor rate variance for July is:

The materials quantity variance for August is:

The spending variance for occupancy expenses in September would be closest to:

The amount shown for "Refurbishing materials" in the planning budget for March would have been closest to:

The labor rate variance for May is:

The net operating income in the flexible budget for January would be closest to:

During June, Tarras Corporation plans to serve 36,000 customers.The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $3.50q Wages and salaries: $35,100 + $0.90q Supplies: $0.70q Insurance: $8,500 Miscellaneous expense: $4,100 + $0.30q Required: Prepare the company's planning budget for June.

During February, Barreca Clinic plans for an activity level of 2,700 patient-visits.The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits: Revenue: $49.10q Personnel expenses: $34,100 + $13.20q Medical supplies: $1,300 + $9.40q Occupancy expenses: $8,300 + $1.40q Administrative expenses: $6,100 + $0.30q Required: Prepare the clinic's planning budget for February.

The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: The direct materials purchases variance is computed when the materials are purchased. Required: a.What is the materials price variance for the month? b.What is the materials quantity variance for the month?

Cryan 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 447 guests and 152 jeeps.The company's income statement showing the actual results for the month appears below: Required: Prepare a report showing the company's revenue and spending variances for May.Label each variance as favorable (F)or unfavorable (U).

Bondi Corporation makes automotive engines.For the most recent month, budgeted production was 1,500 engines.The standard power cost is $3.10 per machine-hour.The company's standards indicate that each engine requires 9.3 machine-hours.Actual production was 1,800 engines.Actual machine-hours were 15,860 machine-hours.Actual power cost totaled $51,593. Required: Determine the rate and efficiency variances for the variable overhead item power cost and indicate whether those variances are unfavorable or favorable.Show your work!

The variable overhead rate variance for the month is closest to:

The labor rate variance for February is:

The raw materials quantity variance for the month is closest to:

Heye Inc.has provided the following data concerning one of the products in its standard cost system.Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for August: Required: a.Compute the materials price variance for August. b.Compute the materials quantity variance for August. c.Compute the labor rate variance for August. d.Compute the labor efficiency variance for August. e.Compute the variable overhead rate variance for August. f.Compute the variable overhead efficiency variance for August.

The net operating income in the planning budget for September would be closest to: