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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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Birkner Corporation's flexible budget performance report for last month shows that actual indirect materials cost, a variable cost, was $30,444 and that the spending variance for indirect materials cost was $8,142 favorable. During that month, the company worked 17,700 machine-hours. Budgeted activity for the month had been 18,200 machine-hours. The cost formula per machine-hour for indirect materials cost must have been closest to:


A) $1.23
B) $1.26
C) $2.12
D) $2.18

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

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Brong 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 March. Brong 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 March. When the company prepared its planning budget at the beginning of March, it assumed that 22 containers would have been refurbished. However, 18 containers were actually refurbished during March. The spending variance for Other expenses for March would have been closest to: A) $500 U B) $8,844 U C) $8,844 F D) $500 F When the company prepared its planning budget at the beginning of March, it assumed that 22 containers would have been refurbished. However, 18 containers were actually refurbished during March. The spending variance for "Other expenses" for March would have been closest to:


A) $500 U
B) $8,844 U
C) $8,844 F
D) $500 F

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

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Neeb Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 7,000 units, but its actual level of activity was 7,040 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Neeb Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 7,000 units, but its actual level of activity was 7,040 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Actual results for January: The spending variance for manufacturing overhead in January would be closest to: A) $2,216 U B) $2,260 F C) $2,260 U D) $2,216 F Actual results for January: Neeb Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 7,000 units, but its actual level of activity was 7,040 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Actual results for January: The spending variance for manufacturing overhead in January would be closest to: A) $2,216 U B) $2,260 F C) $2,260 U D) $2,216 F The spending variance for manufacturing overhead in January would be closest to:


A) $2,216 U
B) $2,260 F
C) $2,260 U
D) $2,216 F

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

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Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 2,400 machine-hours rather than 2,500 machine-hours? A) $59,830 B) $59,280 C) $60,380 D) $61,750 The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 2,400 machine-hours rather than 2,500 machine-hours?


A) $59,830
B) $59,280
C) $60,380
D) $61,750

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

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Korsak 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. Korsak 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. The planning budget for October was based on serving 23 customers, but a total of 19 customers were actually served during October. The activity variance for Other expenses for October would have been closest to: A) $8,126.32 U B) $800 U C) $800 F D) $0 The planning budget for October was based on serving 23 customers, but a total of 19 customers were actually served during October. The activity variance for "Other expenses" for October would have been closest to:


A) $8,126.32 U
B) $800 U
C) $800 F
D) $0

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

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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 direct labor in October would be closest to: A) $280 U B) $280 F C) $1,530 U D) $1,530 F 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 direct labor in October would be closest to: A) $280 U B) $280 F C) $1,530 U D) $1,530 F The activity variance for direct labor in October would be closest to:


A) $280 U
B) $280 F
C) $1,530 U
D) $1,530 F

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

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Willow Clinic bases its budgets on patient-visits. During October, the clinic plans for a level of activity of 2,100 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting: Willow Clinic bases its budgets on patient-visits. During October, the clinic plans for a level of activity of 2,100 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting: Required: Prepare the clinic's planning budget for October. Required: Prepare the clinic's planning budget for October.

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Carlino 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 April. Carlino 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 April. When the company prepared its planning budget at the beginning of April, it assumed that 24 wells would have been serviced. However, 26 wells were actually serviced during April. Required: Prepare a performance report showing the company's activity and revenue and spending variances for April. Indicate in each case whether the variance is favorable (F) or unfavorable (U). When the company prepared its planning budget at the beginning of April, it assumed that 24 wells would have been serviced. However, 26 wells were actually serviced during April. Required: Prepare a performance report showing the company's activity and revenue and spending variances for April. Indicate in each case whether the variance is favorable (F) or unfavorable (U).

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A budget that is based on the actual activity of a period is known as a:


A) continuous budget.
B) flexible budget.
C) static budget.
D) master budget.

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

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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. 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 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 a total of 31 wells were actually serviced in 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) A) and B)
F) A) and C)

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Bonavita 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. Bonavita 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. When the company prepared its planning budget at the beginning of July, it assumed that 33 customers would have been served. The amount shown for net operating income in the planning budget for July would have been closest to: A) ($4,300) B) ($1,414) C) ($1,200) D) $8,200 When the company prepared its planning budget at the beginning of July, it assumed that 33 customers would have been served. The amount shown for net operating income in the planning budget for July would have been closest to:


A) ($4,300)
B) ($1,414)
C) ($1,200)
D) $8,200

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

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Dinham 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 March, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 2,040 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Dinham 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 March, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 2,040 tenant-days. The kennel 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 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 March would be closest to: A) $1,960 F B) $1,960 U C) $1,396 U D) $1,396 F Actual results for March: Dinham 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 March, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 2,040 tenant-days. The kennel 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 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 March would be closest to: A) $1,960 F B) $1,960 U C) $1,396 U D) $1,396 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 March would be closest to:


A) $1,960 F
B) $1,960 U
C) $1,396 U
D) $1,396 F

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

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Heise Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for July was based on 3,500 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.35 per meal; kitchen operations, $4,000 per month plus $1.80 per meal; administrative expenses, $2,800 per month plus $0.60 per meal; and fundraising expenses, $1,600 per month. The director has also provided the diner's statement of actual expenses for the month: Heise Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for July was based on 3,500 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.35 per meal; kitchen operations, $4,000 per month plus $1.80 per meal; administrative expenses, $2,800 per month plus $0.60 per meal; and fundraising expenses, $1,600 per month. The director has also provided the diner's statement of actual expenses for the month: Required: Prepare a report showing the diner's spending variances for each of the expenses and for total expenses for July. Label each variance as favorable (F) or unfavorable (U). Required: Prepare a report showing the diner's spending variances for each of the expenses and for total expenses for July. Label each variance as favorable (F) or unfavorable (U).

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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 Employee salaries and wages in the flexible budget for July would have been closest to: A) $67,400 B) $63,300 C) $77,686 D) $62,900 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 "Employee salaries and wages" in the flexible budget for July would have been closest to:


A) $67,400
B) $63,300
C) $77,686
D) $62,900

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

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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:


A) $726 U
B) $2,052 F
C) $2,052 U
D) $726 F

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

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Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,500 client-visits, but its actual level of activity was 3,490 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,500 client-visits, but its actual level of activity was 3,490 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Actual results for January: The net operating income in the planning budget for January would be closest to: A) $13,312 B) $13,500 C) $6,400 D) $6,364 Actual results for January: Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,500 client-visits, but its actual level of activity was 3,490 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Actual results for January: The net operating income in the planning budget for January would be closest to: A) $13,312 B) $13,500 C) $6,400 D) $6,364 The net operating income in the planning budget for January would be closest to:


A) $13,312
B) $13,500
C) $6,400
D) $6,364

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

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Barsness 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 November. Barsness 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 November. When the company prepared its planning budget at the beginning of November, it assumed that 39 wells would have been serviced. However, 43 wells were actually serviced during November. The amount shown for Other expenses in the planning budget for November would have been closest to: A) $34,800 B) $35,300 C) $32,016 D) $35,050 When the company prepared its planning budget at the beginning of November, it assumed that 39 wells would have been serviced. However, 43 wells were actually serviced during November. The amount shown for "Other expenses" in the planning budget for November would have been closest to:


A) $34,800
B) $35,300
C) $32,016
D) $35,050

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

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Bluemel 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 $43,670 per month plus $2,879 per flight plus $10 per passenger. The company expected its activity in December to be 85 flights and 281 passengers, but the actual activity was 90 flights and 278 passengers. The actual cost for plane operating costs in December was $314,740. The plane operating costs in the flexible budget for December would be closest to:


A) $308,324
B) $314,740
C) $291,195
D) $305,560

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

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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 amount shown for Employee salaries and wages in the planning budget for January would have been closest to: A) $92,400 B) $94,600 C) $97,579 D) $92,700 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 amount shown for "Employee salaries and wages" in the planning budget for January would have been closest to:


A) $92,400
B) $94,600
C) $97,579
D) $92,700

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

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