1. (Points: 10) Kaaihue Detailing's cost formula for its materials and supplies is $2,750 per month plus $17 per vehicle. For the month of April, the company planned for activity of 95 vehicles, but the actual level of activity was 135 vehicles. The actual materials and supplies for the month was $4,850.

The materials and supplies in the flexible budget for April would be closest to:

a. $6,203

b. $4,850

c. $4,365

d. $5,045

2. (Points: 10) Baugus Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 6,900 units, but its actual level of activity was 6,950 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August: Picture The revenue variance for August would be closest to:

a. $1,450 F

b. $1,450 U

c. $430 F

d. $430 U

3. (Points: 10) Tosta 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 May, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,050 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May: Picture The net operating income in the planning budget for May would be closest to:

a. $9,140

b. $11,626

c. $12,200

d. $8,420

4. (Points: 10) A revenue variance is unfavorable if the actual revenue is less than what the revenue should have been for the actual level of activity for the period.

a. TRUE

b. FALSE

5. (Points: 10) Hoeper Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,600 client-visits, but its actual level of activity was 2,570 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: Picture The activity variance for personnel expenses in January would be closest to:

a. $1,416 U

b. $486 F

c. $1,416 F

d. $486 U

6. (Points: 10) Baugus Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 6,900 units, but its actual level of activity was 6,950 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August: Picture The spending variance for direct materials in August would be closest to:

a. $70 F

b. $855 U

c. $70 U

d. $855 F

7. (Points: 10) A favorable spending variance occurs when the actual cost is less than the amount of that cost in the flexible budget.

a. TRUE

b. FALSE

8. (Points: 10) Enriques Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During February, the company budgeted for 5,000 units, but its actual level of activity was 4,990 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for February: Picture The activity variance for direct labor in February would be closest to:

a. $61 U

b. $1,081 U

c. $61 F

d. $1,081 F

9. (Points: 10) Smithson Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,270 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for May: Picture The medical supplies in the flexible budget for May would be closest to:

a. $14,907

b. $15,488

c. $15,207

d. $15,030

10. (Points: 10) Poulsen Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 7,300 units, but its actual level of activity was 7,270 units. The company has provided the following data concerning the formulas to be used in its budgeting: Picture The manufacturing overhead in the flexible budget for July would be closest to:

a. $47,190

b. $47,151

c. $45,344

d. $45,719