Principle of Accounting Ii-Exam 3
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,
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,