STAFFING BUDGETS FTE VARIANCE
ANALYSIS PRACTICE TEST 2026 TESTED
QUESTIONS AND CORRECT ANSWERS
◉ What is the significance of the planning budget?
Answer: It serves as a benchmark for measuring performance
against actual results.
◉ What was the number of flights for Vulcan Flyovers in July?
Answer: 48 flights.
◉ What was the flexible budget revenue for Vulcan Flyovers?
Answer: $15,360.
◉ What was the actual net operating income for Vulcan Flyovers in
July?
Answer: $814.
◉ What is the fixed cost for wages and salaries at Jake's Roof Repair?
Answer: $23,200 per month.
,◉ What is the cost per repair-hour for wages and salaries at Jake's
Roof Repair?
Answer: $16.30 per repair-hour.
◉ What was the expected number of repair hours for Jake's Roof
Repair in May?
Answer: 2,800 repair hours.
◉ What was the actual number of repair hours worked by Jake's
Roof Repair in May?
Answer: 2,900 repair hours.
◉ What is the expected sales price per repair-hour for Jake's Roof
Repair?
Answer: $44.50 per repair-hour.
◉ What should be the total expenses for Jake's Roof Repair based on
actual hours worked?
Answer: To be calculated based on fixed costs and variable costs per
hour.
◉ What is a flexible budget performance report?
Answer: A report that compares actual results to budgeted amounts
based on actual activity levels.
, ◉ How do you calculate revenue in a flexible budget?
Answer: Revenue is calculated as the budgeted price per unit
multiplied by the actual number of units sold.
◉ What are spending variances?
Answer: Differences between actual expenses and budgeted
expenses for the actual level of activity.
◉ What does 'U' stand for in variance reporting?
Answer: 'U' stands for unfavorable, indicating that actual costs
exceeded budgeted costs.
◉ What does 'F' stand for in variance reporting?
Answer: 'F' stands for favorable, indicating that actual costs were
less than budgeted costs.
◉ What is the formula for calculating total expenses in a flexible
budget?
Answer: Total expenses = Fixed costs + (Variable cost per unit x
Actual units produced).
◉ In the context of Jake's Roof Repair, what was the revenue for the
flexible budget?
ANALYSIS PRACTICE TEST 2026 TESTED
QUESTIONS AND CORRECT ANSWERS
◉ What is the significance of the planning budget?
Answer: It serves as a benchmark for measuring performance
against actual results.
◉ What was the number of flights for Vulcan Flyovers in July?
Answer: 48 flights.
◉ What was the flexible budget revenue for Vulcan Flyovers?
Answer: $15,360.
◉ What was the actual net operating income for Vulcan Flyovers in
July?
Answer: $814.
◉ What is the fixed cost for wages and salaries at Jake's Roof Repair?
Answer: $23,200 per month.
,◉ What is the cost per repair-hour for wages and salaries at Jake's
Roof Repair?
Answer: $16.30 per repair-hour.
◉ What was the expected number of repair hours for Jake's Roof
Repair in May?
Answer: 2,800 repair hours.
◉ What was the actual number of repair hours worked by Jake's
Roof Repair in May?
Answer: 2,900 repair hours.
◉ What is the expected sales price per repair-hour for Jake's Roof
Repair?
Answer: $44.50 per repair-hour.
◉ What should be the total expenses for Jake's Roof Repair based on
actual hours worked?
Answer: To be calculated based on fixed costs and variable costs per
hour.
◉ What is a flexible budget performance report?
Answer: A report that compares actual results to budgeted amounts
based on actual activity levels.
, ◉ How do you calculate revenue in a flexible budget?
Answer: Revenue is calculated as the budgeted price per unit
multiplied by the actual number of units sold.
◉ What are spending variances?
Answer: Differences between actual expenses and budgeted
expenses for the actual level of activity.
◉ What does 'U' stand for in variance reporting?
Answer: 'U' stands for unfavorable, indicating that actual costs
exceeded budgeted costs.
◉ What does 'F' stand for in variance reporting?
Answer: 'F' stands for favorable, indicating that actual costs were
less than budgeted costs.
◉ What is the formula for calculating total expenses in a flexible
budget?
Answer: Total expenses = Fixed costs + (Variable cost per unit x
Actual units produced).
◉ In the context of Jake's Roof Repair, what was the revenue for the
flexible budget?
