I need some feedback if these are correct. 1. A flexible budget is a budget that: A) is updated with actual costs as they occur during the period. B) is updated to reflect the actual level of activity during the period. C) is prepared using a computer spreadsheet application. D) contains only variable production costs. 2. Ofarrell Snow Removal's cost formula for its vehicle operating cost is $1,840 per month plus $377 per snow-day. For the month of November, the company planned for activity of 14 snow-days, but the actual level of activity was 19 snow-days. The actual vehicle operating cost for the month was $9,280. The vehicle operating cost in the flexible budget for November would be closest to: A) $9,003 B) $7,118 C) $9,280 D) $9,660 3. Entler Framing's cost formula for its supplies cost is $2,250 per month plus $16 per frame. For the month of June, the company planned for activity of 502 frames, but the actual level of activity was 497 frames. The actual supplies cost for the month was $10,580. The supplies cost in the planning budget for June would be closest to: A) $10,580 B) $10,282 C) $10,686 D) $10,202 4. Johannsen Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $310 per month plus $103 per job plus $23 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in February to be 28 jobs and 187 meals, but the actual activity was 26 jobs and 192 meals. The actual cost for catering supplies in February was $7,620. The catering supplies in the flexible budget for February would be closest to: A) $7,495 B) $7,404 C) $7,620 D) $6,960 5. Kimbril Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $530 per month plus $91 per job plus $12 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in January to be 27 jobs and 174 meals, but the actual activity was 31 jobs and 173 meals. The actual cost for catering supplies in January was $5,330. The activity variance for catering supplies in January would be closest to: A) $255 F B) $255 U C) $352 F D) $352 U 6. Lapinsky 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 $31,400 per month plus $2,148 per flight plus $7 per passenger. The company expected its activity in April to be 89 flights and 261 passengers, but the actual activity was 84 flights and 260 passengers. The actual cost for plane operating costs in April was $204,810. The spending variance for plane operating costs in April would be closest to: A) $8,842 U B) $19,589 F C) $19,589 U D) $8,842 F 7. Velten Corporation's flexible budget performance report for last month shows that actual indirect materials cost, a variable cost, was $45,198 and that the spending variance for indirect materials cost was $9,114 favorable. During that month, the company worked 18,600 machine-hours. Budgeted activity for the month had been 19,000 machine-hours. The cost formula per machine-hour for indirect materials cost must have been closest to: A) $1.90 B) $2.86 C) $1.94 D) $2.92 8. Which of the following comparisons best isolates the impact that changes in prices of inputs and outputs have on performance? A) static planning budget and flexible budget B) static planning budget and actual results C) flexible budget and actual results D) master budget and static planning budget 9. The excess or deficiency of cash available over disbursements on the cash budget is calculated as follows: A) The beginning balance less the expected cash receipts less the expected cash disbursements. B) The cash available less the expected cash receipts plus the expected cash disbursements. C) The beginning balance plus the expected cash receipts less the expected cash disbursements. D) None of the above. 10. There are various budgets within the master budget. One of these budgets is the production budget. Which of the following BEST describes the production budget? A) It details the required direct labor hours. B) It details the required raw materials purchases. C) It is calculated based on the sales budget and the desired ending inventory. D) It summarizes the costs of producing units for the budget period. 1.B 2.A 3.A 4.C 5.D 6.C 7.A 8.B 9.A 10.C