Penn Foster 061683RR â Planning, Performance (Version 1)Use the following information to answer this question.Moorhouse Clinic uses client visits as its measure of activity. During December, the clinic budgeted for 3,700 client visits, but its actual level of activity was 3,690 client visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting:Fixed element Variable element per month per client-visitRevenue ____-____ $25.10Personnel expenses $27,100 $7.10Medical supplies 1,500 4.50Occupancy expenses 6,000 1.00Administrative expenses 3,000 0.10Total expenses $37,600 $12.70Actual results for December:Revenue $96,299Personnel expenses $51,009Medical supplies $17,425Occupancy expenses $9,240Administrative expenses $3,2391. The spending variance for medical supplies in December would be closest toA. $725 U.B. $725 F.C. $680 F.D. $680 U.Use the following information to answer this question.Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows: Standard Quantity Standard Cost per bagDirect material 20 pounds $8.00Direct labor 0.1 hours $1.10Variable overhead 0.1 hours $0.40The company had no beginning inventories of any kind on January 1. Variable overhead is applied to production on the basis of standard direct-labor hours. During January, the company recorded the following activity:- Production of Fastgro: 4,000 bags- Direct materials purchased: 85,000 pounds at a cost of $32,300- Direct-labor worked: 390 hours at a cost of $4,875- Variable overhead incurred: $1,475- Inventory of direct materials on January 31: 3,000 pounds2. The labor efficiency variance for January isA. $350 U.B. $475 F.C. $110 F.D. $130 U.Use the following information to answer this question.Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows: Standard Quantity Standard Cost per bagDirect material 20 pounds $8.00Direct labor 0.1 hours $1.10Variable overhead 0.1 hours $0.40The company had no beginning inventories of any kind on January 1. Variable overhead is applied to production on the basis of standard direct-labor hours. During January, the company recorded the following activity:- Production of Fastgro: 4,000 bags- Direct materials purchased: 85,000 pounds at a cost of $32,300- Direct-labor worked: 390 hours at a cost of $4,875- Variable overhead incurred: $1,475- Inventory of direct materials on January 31: 3,000 pounds3. The materials price variance for January isA. $1,300 U.B. $1,640 F.C. $1,640 U.D. $1,700 F.Use the following information to answer this question.The Adams Company, a merchandising firm, has budgeted its activity for November according to the following information:- Sales were at $450,000, all for cash.- Merchandise inventory on October 31 was $200,000.- The cash balance on November 1 was $18,000.- Selling and administrative expenses are budgeted at $60,000 for November and are paid for in cash.- Budgeted depreciation for November is $25,000.- The planned merchandise inventory on November 30 is $230,000.- The cost of goods sold is 70% of the selling price.- All purchases are paid for in cash.4. The budgeted cash disbursements for November areA. $530,000.B. $375,000.C. $345,000.D. $405,000.5. Coles Company, Inc. makes and sells a single product, Product R. Three yards of Material K are needed to make one unit of Product R. Budgeted production of Product R for the next five months is as follows:August 14,000 unitsSeptember 14,500 unitsOctober 15,500 unitsNovember 12,600 unitsDecember 11,900 unitsThe company wants to maintain monthly ending inventories of Material K equal to 20% of the following month’s production needs. On July 31, this requirement wasn’t met because only 2,500 yards of Material K were on hand. The cost of Material K is $0.85 per yard. The company wants to prepare a Direct Materials Purchase Budget for the rest of the year.The total cost of Material K to be purchased in August isA. $42,300.B. $48,200.C. $40,970.D. $33,840.6. Manufacturing Cycle Efficiency (MCE) is computed asA. Value-Added Time divided by Throughput Time.B. Value-Added Time divided by Delivery Cycle Time.C. Process Time divided by Delivery Cycle Time.D. Throughput Time divided by Delivery Cycle Time.7. The LFM Company makes and sells a single product, Product T. Each unit of Product T requires 1.3 hours of direct labor at a rate of $9.10 per direct-labor hour. LFM Company needs to prepare a direct-labor budget for the second quarter of next year. The budgeted direct-labor cost per unit of Product T would beA. $9.10.B. $7.00.C. $11.83.D. $10.40.Use the following information to answer this question.Werber Clinic uses client visits as its measure of activity. During January, the clinic budgeted for 2,700 client visits, but its actual level of activity was 2,730 client visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting:Fixed element Variable element per month per client-visitRevenue ___-___ $33.60Personnel expenses $22,100 $8.70Medical supplies 1,100 6.60Occupancy expenses 5,600 1.60Administrative expenses 3,700 0.40Total expenses $32,500 $17.30Actual results for January:Revenue $93,408Personnel expenses $46,251Medical supplies $19,348Occupancy expenses $9,508Administrative expenses $4,7728. The activity variance for personnel expenses in January would be closest toA. $661 F.B. $261 F.C. $661 U.D. $261 U.Use the following information to answer this question.Werber Clinic uses client visits as its measure of activity. During January, the clinic budgeted for 2,700 client visits, but its actual level of activity was 2,730 client visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting:Fixed element Variable element per month per client-visitRevenue ___-___ $33.60Personnel expenses $22,100 $8.70Medical supplies 1,100 6.60Occupancy expenses 5,600 1.60Administrative expenses 3,700 0.40Total expenses $32,500 $17.30Actual results for January:Revenue $93,408Personnel expenses $46,251Medical supplies $19,348Occupancy expenses $9,508Administrative expenses $4,7729. The activity variance for administrative expenses in January would be closest toA. $8 U.B. $12 U.C. $8 F.D. $12 F.Use the following information to answer this question.Moorhouse Clinic uses client visits as its measure of activity. During December, the clinic budgeted for 3,700 client visits, but its actual level of activity was 3,690 client visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting:Fixed element Variable elementper month per client-visitRevenue ____-____ $25.10Personnel expenses $27,100 $7.10Medical supplies 1,500 4.50Occupancy expenses 6,000 1.00Administrative expenses 3,000 0.10Total expenses $37,600 $12.70Actual results for December:Revenue $96,299Personnel expenses $51,009Medical supplies $17,425Occupancy expenses $9,240Administrative expenses $3,23910. The revenue variance for December would be closest toA. $3,680 F.B. $3,429 F.C. $3,680 U.D. $3,429 U.Use the following information to answer this question.Moorhouse Clinic uses client visits as its measure of activity. During December, the clinic budgeted for 3,700 client visits, but its actual level of activity was 3,690 client visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting:Fixed element Variable elementper month per client-visitRevenue ____-____ $25.10Personnel expenses $27,100 $7.10Medical supplies 1,500 4.50Occupancy expenses 6,000 1.00Administrative expenses 3,000 0.10Total expenses $37,600 $12.70Actual results for December:Revenue $96,299Personnel expenses $51,009Medical supplies $17,425Occupancy expenses $9,240Administrative expenses $3,23911. The personnel expenses in the planning budget for December would be closest toA. $53,370.B. $51,147.C. $53,299.D. $51,009.Use the following information to answer this question.Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows: Standard Quantity Standard Cost per bagDirect material 20 pounds $8.00Direct labor 0.1 hours $1.10Variable overhead 0.1 hours $0.40The company had no beginning inventories of any kind on January 1. Variable overhead is applied to production on the basis of standard direct-labor hours. During January, the company recorded the following activity:- Production of Fastgro: 4,000 bags- Direct materials purchased: 85,000 pounds at a cost of $32,300- Direct-labor worked: 390 hours at a cost of $4,875- Variable overhead incurred: $1,475- Inventory of direct materials on January 31: 3,000 pounds12. The total variance (both rate and efficiency) for variable overhead for January isA. $85 F.B. $125 F.C. $100 U.D. $40 F.13. Last year, the House of Orange had sales of $826,650, net operating income of $81,000, and operating assets of $84,000 at the beginning of the year and $90,000 at the end of the year. What was the company’s turnover rounded to the nearest tenth?A. 10.2B. 9.5C. 9.8D. 9.2Use the following information to answer this question.Moorhouse Clinic uses client visits as its measure of activity. During December, the clinic budgeted for 3,700 client visits, but its actual level of activity was 3,690 client visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting:Fixed element Variable elementper month per client-visitRevenue ____-____ $25.10Personnel expenses $27,100 $7.10Medical supplies 1,500 4.50Occupancy expenses 6,000 1.00Administrative expenses 3,000 0.10Total expenses $37,600 $12.70Actual results for December:Revenue $96,299Personnel expenses $51,009Medical supplies $17,425Occupancy expenses $9,240Administrative expenses $3,23914. The activity variance for personnel expenses in December would be closest toA. $71 U.B. $71 F.C. $2,361 F.D. $2,361 U.Use the following information to answer this question.Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows: Standard Quantity Standard Cost per bagDirect material 20 pounds $8.00Direct labor 0.1 hours $1.10Variable overhead 0.1 hours $0.40The company had no beginning inventories of any kind on January 1. Variable overhead is applied to production on the basis of standard direct-labor hours. During January, the company recorded the following activity:- Production of Fastgro: 4,000 bags- Direct materials purchased: 85,000 pounds at a cost of $32,300- Direct-labor worked: 390 hours at a cost of $4,875- Variable overhead incurred: $1,475- Inventory of direct materials on January 31: 3,000 pounds15. The materials quantity variance for January isA. $800 U.B. $300 F.C. $750 F.D. $300 U.16. There are various budgets within the master budget. One of these budgets is the production budget. Which of the following best describes the production budget?A. It’s calculated based on the sales budget and the desired ending inventory.B. It details the required raw materials purchases.C. It details the required direct-labor hours.D. It summarizes the costs of producing units for the budget period.17. Lyons Company consists of two divisions, A and B. Lyons Company reported a contribution margin of $50,000 for Division A and had a contribution margin ratio of 30% in Division B, when sales in Division B were $200,000. Net operating income for the company was $25,000, and traceable fixed expenses were $40,000.Lyons Company’s common fixed expenses wereA. $45,000.B. $85,000.C. $70,000.D. $40,000.Use the following information to answer this question.Werber Clinic uses client visits as its measure of activity. During January, the clinic budgeted for 2,700 client visits, but its actual level of activity was 2,730 client visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting:Fixed element Variable element per month per client-visitRevenue ___-___ $33.60Personnel expenses $22,100 $8.70Medical supplies 1,100 6.60Occupancy expenses 5,600 1.60Administrative expenses 3,700 0.40Total expenses $32,500 $17.30Actual results for January:Revenue $93,408Personnel expenses $46,251Medical supplies $19,348Occupancy expenses $9,508Administrative expenses $4,77218. The activity variance for net operating income in January would be closest toA. $2,019 F.B. $489 U.C. $489 F.D. $2,019 U.19. Division X of Charter Corporation makes and sells a single product which is used by manufacturers of fork lift trucks. Presently it sells 12,000 units per year to outside customers at $24 per unit. The annual capacity is 20,000 units and the variable cost to make each unit is $16. Division Y of Charter Corporation would like to buy 10,000 units a year from Division X to use in its products. There would be no cost savings from transferring the units within the company rather than selling them on the outside market.What should be the lowest acceptable transfer price from the perspective of Division X?A. $17.60B. $16.00C. $24.00D. $21.4020. Vandall Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During April, the company budgeted for 7,300 units, but its actual level of activity was 7,340 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April:Data used in budgeting:Fixed element Variable element per month per unitRevenue ___-___ $35.40Direct labor 0 $3.30Direct materials 0 15.90Manufacturing overhead 49,200 1.20Selling and administrative expenses 26,600 0.10Total expenses $75,800 $20.50Actual results for April:Revenue $254,146Direct labor $24,722Direct materials $116,496Manufacturing overhead $59,608Selling and administrative expenses $26,494The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for April would be closest toA. $6,144 F.B. $6,144 U.C. $6,740 F.D. $6,740 U.
