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Creger Corporation, which makes landing gears, has provided the following data for a recent month Budgeted production Standard machine-hours per gear Budgeted supplies cost Actual

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Creger Corporation, which makes landing gears, has provided the following data for a recent month Budgeted production Standard machine-hours per gear Budgeted supplies cost Actual production Actual machine-hours Actual supplies cost (total) 2,200 gears 5.7 machine-hours $ 6.30 per machine-hour 1,300 gears 8,100 machine-hours $49,722 Required: Determine the rate and efficiency variances for the variable overhead item supplies, (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.) Variable overhead rate variance Variable overhead efficiency variance Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (9) 7,200 $ 29,880 Revenue ($4.159) Expenses: Packing supplies ($0.309) Oyster bed maintenance ($3,200) Wages and salaries ($2,300 + $0.509) Shipping ($0.609) Utilities ($1,240) Other ($480 + $0.014) Total expense Net operating income 2,160 3,200 5,900 4,320 1,240 552 17,372 $ 12,508 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,200 $ 27,000 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income 2,330 3,060 6,310 4,050 1,050 1,172 17,972 9,028 $ Required: Calculate the company's 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 (.e., zero variance). Input all amounts as positive values.) Quilcene Oysteria Revenue and Spending Variances Net operating income The actual results for August appear below Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,200 $ 27.000 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income 2,330 3,060 6,310 4,050 1,050 1.172 17.972 9,028 $ Required: Calculate the company's 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.) Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income In a flexible budget what will happen to fixed costs as the activity level increases? Multiple Choice The fixed cost per unit will decrease. The fixed cost per unit will remain unchanged O The foxed cost per unit will increase O Fixed costs are not included in a flexible budget O When using a flexible budget, a decrease in activity within the relevant range: Multiple Choice decreases variable cost per unit. increases variable cost per unit decreases total costs increases total costs A budget that is based on the actual activity of a period is known as a: Multiple Choice continuous budget flexible budget static budget master budget

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