Principle of Accounting Ii-Exam 3

Only available on StudyMode
  • Download(s) : 321
  • Published : January 12, 2013
Open Document
Text Preview
Principle of Accounting II, Exam 3, spring 2010 V

1-17. 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.

2-19. Marchi Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below:  [pic] 

The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 70 guests?  A. $42,460.00
B. $6,620.00
C. $7,086.15
D. $6,580.00

3- 20. Barringer Manufacturing Corporation has prepared the following overhead budget for next month.  [pic] 
The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 7,900 machine-hours rather than 7,800 machine-hours?  A. $110,710.00

B. $109,620.00
C. $110,868.00
D. $111,025.38

4-21. Placek Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below:  [pic] 
The total overhead cost at an activity level of 7,700 patient-visits per month should be:  A. $129,550
B. $121,720
C. $129,100
D. $137,830

5-23. 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

6-31. 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

7-37. 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

8-42. 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

9-44. 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: ...
tracking img