Blackwelder Snow Removal's cost formula for its vehicle operating cost is $1,240 per month plus $348 per snow-day. For the month of December, the company planned for activity of 12 snow- days, but the actual level of activity was 14 snow-days. The actual vehicle operating cost for the month was $6,330. The vehicle operating cost in the planning budget for December would be closest to:

1.   A flexible budget:

A.   classifies budget requests by activity and estimates the benefits arising from each activity.

B.   presents a statement of expectations for a period of time but does not present a firm commitment.

C.   presents the plan for only one level of activity and does not adjust to changes in the level of activity.

D. presents the plan for a range of activity so that the plan can be adjusted for changes in activity levels.

2.   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.

3.   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

4.   Blackwelder Snow Removal's cost formula for its vehicle operating cost is $1,240 per month plus $348 per snow-day. For the month of December, the company planned for activity of 12 snow- days, but the actual level of activity was 14 snow-days. The actual vehicle operating cost for the month was $6,330. The vehicle operating cost in the planning budget for December would be closest to:

A. $5,426 B. $6,112 C. $5,416 D. $6,330

5.   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

6.   Guilbault Midwifery's cost formula for its wages and salaries is $2,340 per month plus $154 per birth. For the month of June, the company planned for activity of 115 births, but the actual level of activity was 112 births. The actual wages and salaries for the month was $19,530. The wages and salaries in the planning budget for June would be closest to:

A. $19,530 B. $19,588 C. $20,053 D. $20,050

7.   Dewberry Midwifery's cost formula for its wages and salaries is $1,960 per month plus $429 per birth. For the month of December, the company planned for activity of 128 births, but the actual level of activity was 130 births. The actual wages and salaries for the month was $56,020. The wages and salaries in the flexible budget for December would be closest to:

A. $57,761 B. $57,730 C. $56,020 D. $56,872

8.   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

9.   Rising Framing's cost formula for its supplies cost is $2,210 per month plus $10 per frame. For the month of January, the company planned for activity of 710 frames, but the actual level of activity was 705 frames. The actual supplies cost for the month was $9,500. The supplies cost in the flexible budget for January would be closest to:

A. $9,260 B. $9,244 C. $9,500 D. $9,310

10.   Naval 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 $430 per month   plus

$99 per job plus $10 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 March to be 12 jobs and 126 meals, but the actual activity was 9 jobs and 124 meals. The actual cost for catering supplies in March was $2,550. The catering supplies in the planning budget for March would be closest to:

A. $3,400 B. $2,561 C. $2,550 D. $2,878

11.   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

12.   Venanzi 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 $40,720 per month plus $2,646 per flight plus $11 per passenger. The company expected its activity in September to be 62 flights and 288 passengers, but the actual activity was 64 flights and 289 passengers. The actual cost for plane operating costs in September was $214,430. The activity variance for plane operating costs in September would be closest to:

A. $6,490 U B. $5,303 F C. $6,490 F D. $5,303 U

13.   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

14.   Portsche Snow Removal's cost formula for its vehicle operating cost is $2,310 per month plus

$317 per snow-day. For the month of November, the company planned for activity of 18 snow- days, but the actual level of activity was 20 snow-days. The actual vehicle operating cost for the month was $8,730. The activity variance for vehicle operating cost in November would be closest to:

A. $714 U B. $714 F C. $634 F D. $634 U

15.    Reuer Midwifery's cost formula for its wages and salaries is $2,900 per month plus $475 per birth. For the month of March, the company planned for activity of 116 births, but the actual level of activity was 117 births. The actual wages and salaries for the month was $56,270. The activity variance for wages and salaries in March would be closest to:

A. $1,730 U B. $475 F C. $475 U D. $1,730 F

16.   Embertson Framing's cost formula for its supplies cost is $1,350 per month plus $16 per frame. For the month of June, the company planned for activity of 816 frames, but the actual level of activity was 812 frames. The actual supplies cost for the month was $14,680. The activity variance for supplies cost in June would be closest to:

A.   $64 U B. $274 U

C. $64 F

D. $274 F

17.    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

18.   Posson 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 $210 per month   plus

$96 per job plus $20 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 March to be 20 jobs and 162 meals, but the actual activity was 17 jobs and 164 meals. The actual cost for catering supplies in March was $4,990. The spending variance for catering supplies in March would be closest to:

A. $380 F B. $132 U C. $132 F D. $380 U

19.   Dunklin Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,620 patient-visits and the actual level of activity was 1,540 patient- visits. The cost formula for administrative expenses is $3.20 per patient-visit plus $14,300 per month. The actual administrative expense was $21,050. In the clinic's flexible budget performance report for last month, the spending variance for administrative expenses was:

A. $118 F B. $256 F C. $1,566 U D. $1,822 U

20.   Brattain Tile Installation Corporation measures its activity in terms of square feet of tile installed. Last month, the budgeted level of activity was 1,230 square feet and the actual level of activity was 1,140 square feet. The company's owner budgets for supply costs, a variable cost,  at

$2.10 per square foot. The actual supply cost last month was $3,260. In the company's flexible budget performance report for last month, what would have been the spending variance for supply costs?

A. $257 F B. $866 U C. $677 U D. $189 F