FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 11: Flexible Budgets and Performance Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Essay

Review LaterAdd Note

Review Later

Turnner 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 April, the company budgeted for 374 guests and 166 jeeps. The actual activity for the month was 364 guests and 167 jeeps. Required: Prepare the company's planning budget for April.

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

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

A) $16,930
B) $17,350
C) $16,885
D) $16,695

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

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

The activity variance for net operating income in May would be closest to:

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

During August, Diga Corporation plans to serve 35,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.20q Wages and salaries: $33,700 + $1.50q Supplies: $0.70q Insurance: $11,000 Miscellaneous: $4,800 + $0.40q Required: Prepare the company's planning budget for August.

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

A revenue variance is favorable if the revenue in the static planning budget exceeds the revenue in the flexible budget.

If the actual level of activity is 4% more than planned, then the variable costs in the static budget should be increased by 4% before comparing them to actual costs.

Onofre Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting: In October, the school budgeted for 1,410 students and 58 courses. The actual activity for the month was 1,310 students and 62 courses. Required: Prepare the school's flexible budget for the actual level of activity in October.

The occupancy expenses in the flexible budget for March would be closest to:

A flexible budget performance report contains both activity variances and revenue and spending variances.

The total variable cost at the activity level of 3,200 guest-days per month should be:

Fudala Snow Removal's cost formula for its vehicle operating cost is $1,480 per month plus $308 per snow-day. For the month of March, the company planned for activity of 11 snow-days, but the actual level of activity was 16 snow-days. The actual vehicle operating cost for the month was $6,130. The spending variance for vehicle operating cost in March would be closest to:

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

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 September would be closest to:

Aubuchon Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for March was based on 3,400 meals, but the diner actually served 3,100 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.90 per meal; kitchen operations, $4,900 per month plus $1.05 per meal; administrative expenses, $3,600 per month plus $0.25 per meal; and fundraising expenses, $1,700 per month. Required: Prepare a report showing the activity variances for each of the expenses and for total expenses for March. Label each variance as favorable (F) or unfavorable (U).

The wages and salaries in the flexible budget for January would be closest to:

The activity variance for plane operating costs in January would be closest to:

Voytek Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 36,000 customers, but actually served 34,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting: Required: Prepare a report showing the company's activity variances for October. Indicate in each case whether the variance is favorable (F) or unfavorable (U).

The selling and administrative expenses in the planning budget for February would be closest to: