Cahalane Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of activity was 11,600 skeins and the actual level of activity was 12,000 skeins. The company's owner budgets for dye costs, a variable cost, at $0.31 per skein. The actual dye cost last month was $3,540. In the company's flexible budget performance report for last month, what would have been the spending variance for dye costs?

1.        Cahalane Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of activity was 11,600 skeins and the actual level of activity was 12,000 skeins. The company's owner budgets for dye costs, a variable cost, at $0.31 per skein. The actual dye cost last month was $3,540. In the company's flexible budget performance report for last month, what would have been the spending variance for dye costs?

A. $118 U B. $124 U

C. $56 F

D. $180 F

2.        Gladstone Footwear Corporation's flexible budget cost formula for supplies, a variable cost, is

$2.83 per unit of output. The company's flexible budget performance report for last month showed a $9,555 unfavorable spending variance for supplies. During that month, 19,500 units were produced. Budgeted activity for the month had been 19,300 units. The actual cost per unit for indirect materials must have been closest to:

A. $3.32 B. $3.81 C. $2.83 D. $3.85

3.        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

4.         Lesinski Snow Removal's cost formula for its vehicle operating cost is $1,770 per month plus

$483 per snow-day. For the month of February, the company planned for activity of 19 snow-days, but the actual level of activity was 24 snow-days. The actual vehicle operating cost for the month was $13,070. The spending variance for vehicle operating cost in February would be closest to: A. $2,123 U

B. $292 F C. $2,123 F D. $292 U

5.        Harville Midwifery's cost formula for its wages and salaries is $1,610 per month plus $199 per birth. For the month of March, the company planned for activity of 118 births, but the actual level of activity was 122 births. The actual wages and salaries for the month was $25,430. The spending variance for wages and salaries in March would be closest to:

A. $458 F B. $338 U C. $458 U D. $338 F

6.        Olivier Framing's cost formula for its supplies cost is $2,870 per month plus $16 per frame. For the month of January, the company planned for activity of 533 frames, but the actual level of activity was 534 frames. The actual supplies cost for the month was $11,080. The spending variance for supplies cost in January would be closest to:

A. $334 U B. $334 F C. $318 U D. $318 F

7.        Elizarraras 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 $39,820 per month plus $2,938 per flight plus $8 per passenger. The company expected its activity in June to be 64 flights and 229 passengers, but the actual activity was 66 flights and 225 passengers. The actual cost for plane operating costs in June was $234,570. The plane operating costs in the planning budget for June would be closest to:

A. $229,684 B. $227,462 C. $234,570 D. $235,528

8.        Niforos 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 $41,380 per month plus $2,282 per flight plus $14 per passenger. The company expected its activity in August to be 77 flights and 264 passengers, but the actual activity was 78 flights and 261 passengers. The actual cost for plane operating costs in August was $216,740. The plane operating costs in the flexible budget for August would be closest to:

A. $220,790 B. $223,030 C. $223,657 D. $216,740

Reference 11-1

Pollica Corporation's cost formula for its selling and administrative expense is $11,400 per month plus $94 per unit. For the month of March, the company planned for activity of 5,700 units, but the actual level of activity was 5,660 units. The actual selling and administrative expense for the month was $522,860.

9.        The selling and administrative expense in the planning budget for March would be closest to: A. $522,860

B. $547,200 C. $543,440 D. $526,555

10.   The selling and administrative expense in the flexible budget for March would be closest to: A. $547,200

B. $522,860 C. $543,360 D. $543,440

11.   The activity variance for selling and administrative expense in March would be closest to: A. $24,340 F

B. $24,340 U C. $3,760 U D. $3,760 F

12.   The spending variance for selling and administrative expense in March would be closest to:

A. $20,580 F B. $24,340 U C. $24,340 F D. $20,580 U