1). Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The companys planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) 300 Revenue ($470.00q) $ 141,000 Expenses: Wages and salaries ($11,500 + $122.00q) 48,100 Supplies ($3.00q) 900 Equipment rental ($2,300 + $24.00q) 9,500 Insurance ($3,900) 3,900 Miscellaneous ($510 + $1.48q) 954 Total expense 63,354 Net operating income $ 77,646 During May, the companys actual activity was 290 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)

2).

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,600 pounds of oysters in August. The companys flexible budget for August appears below:

Quilcene Oysteria
Flexible Budget
For the Month Ended August 31
Actual pounds (q)		7,600
Revenue ($4.10q)	$	31,160
Expenses:
Packing supplies ($0.25q)		1,900
Oyster bed maintenance ($3,300)		3,300
Wages and salaries ($2,200 + $0.30q)		4,480
Shipping ($0.75q)		5,700
Utilities ($1,230)		1,230
Other ($410 + $0.01q)		486
Total expense		17,096
Net operating income	$	14,064

The actual results for August appear below:

Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds		7,600
Revenue	$	26,900
Expenses:
Packing supplies		2,070
Oyster bed maintenance		3,160
Wages and salaries		4,890
Shipping		5,430
Utilities		1,040
Other		1,106
Total expense		17,696
Net operating income	$	9,204

Required:

Calculate the companys revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

3).

Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost driversthe number of cruises and the number of passengersthat it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 86 passengers can be accommodated on the tour boat. Data concerning the companys cost formulas appear below:

	Fixed Cost per Month			Cost per Cruise			Cost per Passenger
Vessel operating costs	$	6,500		$	475.00		$	3.30
Advertising	$	2,400
Administrative costs	$	5,000		$	35.00		$	1.50
Insurance	$	3,100

For example, vessel operating costs should be $6,500 per month plus $475.00 per cruise plus $3.30 per passenger. The companys sales should average $35.00 per passenger. In July, the company provided 56 cruises for a total of 3,100 passengers.

Required:

Prepare the companys flexible budget for July.

4).

Exercise 9-4 Direct Materials Variances [LO9-4]

Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the companys products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,500 helmets, using 2,170 kilograms of plastic. The plastic cost the company $16,492.

According to the standard cost card, each helmet should require 0.54 kilograms of plastic, at a cost of $8.00 per kilogram.

Required:

1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,500 helmets?

2. What is the standard materials cost allowed (SQ SP) to make 3,500 helmets?

3. What is the materials spending variance?

4. What is the materials price variance and the materials quantity variance?

(For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)