uiz - Chapter 9 1. While fixed costs should not be affected by a change in the level of activity within the relevant range, they may change for other reasons. A) True B) False 2. The revenue and spending variances are the differences between the static planning budget and the actual results for the period. A) True B) False 3. Fullagar Corporation's cost formula for its manufacturing overhead is $15,400 per month plus $11 per machine-hour. For the month of May, the company planned for activity of 7,500 machine-hours, but the actual level of activity was 7,540 machine-hours. The actual manufacturing overhead for the month was $102,710. The manufacturing overhead in the flexible budget for May would be closest to: A) $97,900 B) $98,422 C) $98,340 D) $102,710 4. Parisi Clinic uses client-visits as its measure of activity. During March, the clinic budgeted for 2,300 client-visits, but its actual level of activity was 2,350 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Picture The net operating income in the flexible budget for March would be closest to: A) $11,100 B) $9,905 C) $10,340 D) $12,500 5. Clovis Midwifery's cost formula for its wages and salaries is $2,680 per month plus $245 per birth. For the month of September, the company planned for activity of 118 births, but the actual level of activity was 121 births. The actual wages and salaries for the month was $33,290. The wages and salaries in the flexible budget for September would be closest to: A) $32,393 B) $31,590 C) $32,325 D) $33,290 6. Cadavieco Detailing's cost formula for its materials and supplies is $1,990 per month plus $8 per vehicle. For the month of November, the company planned for activity of 92 vehicles, but the actual level of activity was 52 vehicles. The actual materials and supplies for the month was $2,440. The spending variance for materials and supplies in November would be closest to: A) $34 F B) $286 F C) $34 U D) $286 U 7. 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: A) $1,262 U B) $278 F C) $278 U D) $1,262 F 8. Gradert Framing's cost formula for its supplies cost is $1,540 per month plus $12 per frame. For the month of September, the company planned for activity of 668 frames, but the actual level of activity was 666 frames. The actual supplies cost for the month was $9,980. The supplies cost in the planning budget for September would be closest to: A) $10,010 B) $9,532 C) $9,556 D) $9,980 9. Snyders 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 October, the kennel budgeted for 2,600 tenant-days, but its actual level of activity was 2,610 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: Picture The activity variance for net operating income in October would be closest to: A) $2,581 U B) $99 F C) $2,581 F D) $99 U 10. Lantto 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 $34,810 per month plus $2,850 per flight plus $12 per passenger. The company expected its activity in June to be 70 flights and 292 passengers, but the actual activity was 69 flights and 291 passengers. The actual cost for plane operating costs in June was $236,550. The plane operating costs in the flexible budget for June would be closest to: A) $237,814 B) $234,952 C) $236,550 D) $234,417