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Exam 9: Flexible Budgets Standard Costs and Variance Analysis

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Question 51

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The revenue variance 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) $23,000 U
B) $23,000 F
C) $2,500 F
D) $2,500 U

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

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Question 52

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Brookings 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 34 wells would have been serviced. Required: Prepare the company's planning budget for August.

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Question 53

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The labor rate variance for November is:

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

The total standard cost per unit is closest to:

If activity is higher than expected, total fixed costs should be higher than expected.If activity is lower than expected, total fixed costs should be lower than expected.

Thilking Midwifery's cost formula for its wages and salaries is $2,140 per month plus $454 per birth.For the month of August, the company planned for activity of 102 births, but the actual level of activity was 100 births.The actual wages and salaries for the month was $47,660.The wages and salaries in the flexible budget for August would be closest to:

If demand is insufficient to keep everyone busy and workers are not laid off, a favorable (F)labor efficiency variance often will be a result.

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.

The spending variance for "Refurbishing materials" for March would have been closest to:

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

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

Ramkissoon Midwifery's cost formula for its wages and salaries is $2,060 per month plus $442 per birth.For the month of July, the company planned for activity of 117 births, but the actual level of activity was 114 births.The actual wages and salaries for the month was $54,500.The spending variance for wages and salaries in July would be closest to:

The standard quantity or standard hours allowed refers to the amount of the input that should have been used to produce the actual output of the period.

The standard number of machine-hours allowed for July production is closest to:

The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: Required: a.What is the labor rate variance for the month? b.What is the labor efficiency variance for the month?

Fortes 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 April: Required: a.Compute the materials price variance for April. b.Compute the materials quantity variance for April. c.Compute the labor rate variance for April. d.Compute the labor efficiency variance for April. e.Compute the variable overhead rate variance for April. f.Compute the variable overhead efficiency variance for April.

What is the materials quantity variance for the month?

The facility expenses in the flexible budget for January would be closest to:

The materials price variance for November is: