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Standard Costing Exam
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ADDITIONAL RQ Ch8
ADDITIONAL RQ Ch8
Student: ___________________________________________________________________________
Spraque 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 $40,520 per month plus $2,733 per flight plus $11 per passenger. The company expected its activity in June to be 71 flights and 207 passengers, but the actual activity was 70 flights and 205 passengers. The actual cost for plane operating costs in June was $239,580.
1.The activity variance for plane operating costs in June would be closest to:A.$2,755 UB.$2,755 FC.$2,740 FD.$2,740 U
Luc Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During February, the company budgeted for 5,000 units, but its actual level of activity was 4,950 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for February:
2.The selling and administrative expenses in the planning budget for February would be closest to:A.$30,490B.$30,495C.$30,500D.$30,190
Worden Hospital bases its budgets on patient-visits. The hospital's static budget for February appears below:
3.The total fixed cost at the activity level of 4,700 patient-visits per month should be:A.$162,620B.$148,780C.$93,060D.$85,140
Murphree Clinic uses client-visits as its measure of activity. During April, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,350 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for April:
4.The net operating income in the flexible budget for April would be closest to:A.$20,115B.$19,519C.$14,425D.$13,550
Tosta 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 May, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,050 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:
5.The net operating income in the flexible budget for May would be closest to:A.$9,140B.$8,420C.$11,626D.$12,200
Springmeyer Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,940 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August:
6.The personnel expenses in the planning budget for August would be closest to:A.$69,600B.$73,800C.$70,560D.$73,200
ADDITIONAL RQ Ch8 Key
Spraque 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 $40,520 per month plus $2,733 per flight plus $11 per passenger. The company expected its activity in June to be 71 flights and 207 passengers, but the actual activity was 70 flights and 205 passengers. The actual cost for plane operating costs in June was $239,580.
Brewer - Chapter 081.The activity variance for plane operating costs in June would be closest to:A.$2,755 UB.$2,755 FC.$2,740 FD.$2,740 U
Since the flexible budget expense is less than the planning budget, the variance is favorable (F)
AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationBrewer - Chapter 08 #232Learning Objective: 4Learning Objective: 5Level: EasyLuc Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During February, the company budgeted for 5,000 units, but its actual level of activity was 4,950 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for February:
Brewer - Chapter 082.The selling and administrative expenses in the planning budget for February would be closest to:A.$30,490B.$30,495C.$30,500D.$30,190
$29,500 + $0.20 ( 5,000 = $30,500
AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationBrewer - Chapter 08 #153Learning Objective: 1Level: MediumWorden Hospital bases its budgets on patient-visits. The hospital's static budget for February appears below:
Brewer - Chapter 083.The total fixed cost at the activity level of 4,700 patient-visits per month should be:A.$162,620B.$148,780C.$93,060D.$85,140
Total fixed cost = $33,110 + $52,030 = $85,140
AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationBrewer - Chapter 08 #158Learning Objective: 1Level: EasyMurphree Clinic uses client-visits as its measure of activity. During April, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,350 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for April:
Brewer - Chapter 084.The net operating income in the flexible budget for April would be closest to:A.$20,115B.$19,519C.$14,425D.$13,550
AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationBrewer - Chapter 08 #104Learning Objective: 1Level: MediumTosta 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 May, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,050 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:
Brewer - Chapter 085.The net operating income in the flexible budget for May would be closest to:A.$9,140B.$8,420C.$11,626D.$12,200
AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationBrewer - Chapter 08 #125Learning Objective: 1Level: MediumSpringmeyer Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,940 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August:
Brewer - Chapter 086.The personnel expenses in the planning budget for August would be closest to:A.$69,600B.$73,800C.$70,560D.$73,200
$29,700 + $15 ( 2,900 = $73,200
AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationBrewer - Chapter 08 #163Learning Objective: 1Level: MediumADDITIONAL RQ Ch8 Summary
Category#ofQuestions
AACSB:Analytic6
AICPABB:CriticalThinking6
AICPAFN:Measurement6
Bloom's:Application6
Brewer-Chapter0812
LearningObjective:15
LearningObjective:41
LearningObjective:51
Level:Easy2
Level:Medium4
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