Question 1

The administrative expenses in the planning budget for May would be closest to:
A)$7,228
B)$7,016
C)$6,948
D)$7,240

Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $6,000 + $0.40 F1F1F1S1F1F1F10 3,100 = $7,240

Question 2

The activity variance for administrative expenses in June would be closest to:
A)$269 F
B)$1 U
C)$269 U
D)$1 F

Accepted Answer

The answer of The activity variance for administrative expenses in...

Question 3

The activity variance for direct labor in October would be closest to:
A)$300 U
B)$270 U
C)$300 F
D)$270 F

Accepted Answer

The answer of The activity variance for direct labor in...

Question 4

The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for May would be closest to:
A)$5,890 F
B)$5,890 U
C)$5,720 U
D)$5,720 F

Accepted Answer

The answer of The overall revenue and spending variance (i.e.,...

Question 5

The net operating income in the flexible budget for May would be closest to:
A)$16,115
B)$15,926
C)$10,130
D)$10,300

Accepted Answer

The answer of The net operating income in the flexible...

Question 6

The activity variance for net operating income in May would be closest to:
A)$5,720 F
B)$170 U
C)$170 F
D)$5,720 U

Accepted Answer

The answer of The activity variance for net operating income...

Question 7

The direct labor in the planning budget for October would be closest to:
A)$36,150
B)$35,880
C)$35,910
D)$36,180

Accepted Answer

Direct labor cost per unit is $30, and the company plans to produce 1,206 units in October. Thus, the direct labor cost in the planning budget for October would be:

Direct labor cost = Direct labor cost per unit x Number of units
Direct labor cost = $30 x 1,206
Direct labor cost = $36,180

Therefore, the closest answer is D, $36,180.

Question 8

The spending variance for expendables in May would be closest to:
A)$784 U
B)$1,120 F
C)$784 F
D)$1,120 U

Accepted Answer

The answer of The spending variance for expendables in May...

Question 9

The revenue variance for October would be closest to:
A)$680 F
B)$1,040 F
C)$1,040 U
D)$680 U

Accepted Answer

The answer of The revenue variance for October would be...

Question 10

The direct materials in the flexible budget for October would be closest to:
A)$95,095
B)$97,835
C)$95,810
D)$96,380

Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $0 + $14.30 F1F1F1S1F1F1F10 6,650 = $95,095

Question 11

The spending variance for expendables in June would be closest to:
A)$890 U
B)$890 F
C)$989 U
D)$989 F

Accepted Answer

The answer of The spending variance for expendables in June...

Question 12

The activity variance for administrative expenses in March would be closest to:
A)$212 F
B)$8 U
C)$212 U
D)$8 F

Accepted Answer

The answer of The activity variance for administrative expenses in...

Question 13

The expendables in the flexible budget for May would be closest to:
A)$35,084
B)$35,420
C)$35,854
D)$36,558

Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $700 + $11.20 F1F1F1S1F1F1F10 3,070 = $35,084

Question 14

The facility expenses in the flexible budget for June would be closest to:
A)$17,933
B)$17,791
C)$17,732
D)$17,700

Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $9,700 + $3.20 F1F1F1S1F1F1F10 2,510 = $17,732

Question 15

The facility expenses in the flexible budget for March would be closest to:
A)$23,409
B)$22,840
C)$22,750
D)$23,733

Accepted Answer

To calculate the facility expenses in the flexible budget for March, we need to use the formula:
Flexible Budget = Fixed Costs + Variable Costs x Actual Output

Fixed Costs for facility expenses are given as $13,600
Variable Costs for facility expenses are given as $2.90 per output unit.

Actual Output for the month of March is given as 7,600 units.

Flexible Budget = $13,600 + ($2.90 x 7,600) = $22,840

Therefore, the closest facility expenses in the flexible budget for March would be $22,840, which is option B.

Question 16

The spending variance for facility expenses in March would be closest to:
A)$730 U
B)$730 F
C)$820 U
D)$820 F

Accepted Answer

The answer of The spending variance for facility expenses in...

Question 17

The spending variance for direct materials in October would be closest to:
A)$1,295 F
B)$2,010 U
C)$2,010 F
D)$1,295 U

Accepted Answer

The spending variance for direct materials is calculated as the difference between the actual cost of direct materials purchased and the standard cost of direct materials that should have been purchased. 
Actual cost of direct materials purchased = 16,500 x $12 = $198,000
Standard cost of direct materials that should have been purchased = 16,000 x $12.50 = $200,000
Spending variance = Actual cost - Standard cost = $198,000 - $200,000 = $2,000 U 
Therefore, the closest option is B) $2,010 U.

Question 18

The net operating income in the planning budget for May would be closest to:
A)$10,300
B)$15,926
C)$10,130
D)$16,115

Accepted Answer

Net operating income = Sales - Variable Expenses - Fixed Expenses
Net operating income = $42,000 - ($14,000 + $10,700) - $6,000
Net operating income = $17,300 - $6,000
Net operating income = $11,300

The closest option to this is $10,300 (option A).

Question 19

The wages and salaries in the planning budget for March would be closest to:
A)$23,691
B)$23,264
C)$23,130
D)$23,854

Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $3,700 + $6.70 F1F1F1S1F1F1F10 2,900 = $23,130

Question 20

The activity variance for wages and salaries in May would be closest to:
A)$201 F
B)$201 U
C)$641 U
D)$641 F

Accepted Answer

The answer of The activity variance for wages and salaries...

Quiz 11: Flexible Budgets and Performance Analysis

The administrative expenses in the planning budget for May would be closest to:

The activity variance for administrative expenses in June would be closest to:

The activity variance for direct labor in October would be closest to:

The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for May would be closest to:

The net operating income in the flexible budget for May would be closest to:

The activity variance for net operating income in May would be closest to:

The direct labor in the planning budget for October would be closest to:

The spending variance for expendables in May would be closest to:

The revenue variance for October would be closest to:

The direct materials in the flexible budget for October would be closest to:

The spending variance for expendables in June would be closest to:

The activity variance for administrative expenses in March would be closest to:

The expendables in the flexible budget for May would be closest to:

The facility expenses in the flexible budget for June would be closest to:

The facility expenses in the flexible budget for March would be closest to:

The spending variance for facility expenses in March would be closest to:

The spending variance for direct materials in October would be closest to:

The net operating income in the planning budget for May would be closest to:

The wages and salaries in the planning budget for March would be closest to:

The activity variance for wages and salaries in May would be closest to: