237. Brandewie Corporation bases its budgets on the activity measure customers served.
During May, the company planned to serve 38,000 customers, but actually served 33,000
customers. Revenue is $2.80 per customer served. Wages and salaries are $28,800 per month plus
$0.80 per customer served. Supplies are $0.50 per customer served. Insurance is $6,800 per
month. Miscellaneous expenses are $5,800 per month plus $0.30 per customer served.
Required:
Prepare a report showing the company’s activity variances for May. Indicate in each case whether
the variance is favorable (F) or unfavorable (U).
10-202
238. Chapnick Clinic bases its budgets on the activity measure patient-visits. During
September, the clinic planned for 2,800 patient-visits. The clinic has provided the following data
concerning the formulas it uses in its budgeting:
The clinic has also furnished its income statement for September:
Required:
Prepare a report showing the clinic’s activity variances for September.
10-204
239. Filkins Clinic bases its budgets on the activity measure patient-visits. During February, the
clinic planned for 3,900 patient-visits, but the actual level of activity was 4,100 patient-visits. The
clinic has provided the following data concerning the formulas it uses in its budgeting:
Required:
Prepare a report showing the clinic’s activity variances for February. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
10-205
240. Sroufe Clinic bases its budgets on the activity measure patient-visits. During July, the
clinic planned for 3,500 patient-visits, but its actual level of activity was 4,000 patient-visits. The
clinic has provided the following data concerning the formulas it uses in its budgeting:
Required:
Prepare a report showing the clinic’s activity variances for July. Indicate in each case whether the
variance is favorable (F) or unfavorable (U).
241. Fongeallaz Clinic bases its budgets on the activity measure patient-visits. During January,
the clinic planned for 2,300 patient-visits, but its actual level of activity was 2,100 patient-visits.
Revenue should be $52.50 per patient-visit. Personnel expenses should be $34,100 per month
plus $15.10 per patient-visit. Medical supplies should be $1,600 per month plus $8.40 per patient–
visit. Occupancy expenses should be $9,400 per month plus $1.90 per patient-visit. Administrative
expenses should be $3,500 per month plus $0.10 per patient-visit.
Required:
Prepare a report showing the clinic’s activity variances for January. Indicate in each case whether
the variance is favorable (F) or unfavorable (U).
10-207
242. Socha Memorial Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for January was based on 3,400 meals, but the diner actually served
3,800 meals. The diner’s director has provided the following cost formulas to use in budgets:
The director has also provided the diner’s statement of actual expenses for the month:
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses
for January. Label each variance as favorable (F) or unfavorable (U).
243. Mable Memorial Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for April was based on 3,000 meals, but the diner actually served
3,100 meals. The diner’s director has provided the following cost formulas to use in budgets:
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses
for April. Label each variance as favorable (F) or unfavorable (U).
10-209
244. Zuehlke Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for September was based on 2,800 meals, but the diner actually
served 3,000 meals. The diner’s director has provided the following cost data to use in the budget:
groceries, $3.85 per meal; kitchen operations, $4,500 per month plus $1.65 per meal;
administrative expenses, $3,300 per month plus $0.30 per meal; and fundraising expenses, $1,200
per month. The director has also provided the diner’s statement of actual expenses for the month:
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses
for September.
10-210
245. Aubuchon Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for March was based on 3,400 meals, but the diner actually served
3,100 meals. The diner’s director has provided the following cost data to use in the budget:
groceries, $2.90 per meal; kitchen operations, $4,900 per month plus $1.05 per meal;
administrative expenses, $3,600 per month plus $0.25 per meal; and fundraising expenses, $1,700
per month.
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses
for March. Label each variance as favorable (F) or unfavorable (U).
10-211
246. Crovo Corporation uses customers served as its measure of activity. During December, the
company budgeted for 38,000 customers, but actually served 40,000 customers. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for December:
Data used in budgeting:
Actual results for December:
Required:
Prepare a report showing the company’s revenue and spending variances for December. Label
each variance as favorable (F) or unfavorable (U).
10-213
247. Hertzler Corporation uses customers served as its measure of activity. During November,
the company budgeted for 33,000 customers, but actually served 34,000 customers. The company
uses the following revenue and cost formulas in its budgeting, where q is the number of
customers served:
Revenue: $3.20q
Wages and salaries: $26,600 + $1.20q
Supplies: $0.40q
Insurance: $7,900
Miscellaneous: $6,400 + $0.10q
The company reported the following actual results for November:
Required:
Prepare a report showing the company’s revenue and spending variances for November. Label
each variance as favorable (F) or unfavorable (U).
10-214
248. Wartenberg Corporation uses customers served as its measure of activity. The company
bases its budgets on the following information: Revenue should be $3.80 per customer served.
Wages and salaries should be $38,800 per month plus $1.00 per customer served. Supplies should
be $0.60 per customer served. Insurance should be $7,100 per month. Miscellaneous expenses
should be $5,100 per month plus $0.30 per customer served.
The company reported the following actual results for January:
Required:
Prepare a report showing the company’s revenue and spending variances for January. Label each
variance as favorable (F) or unfavorable (U).
10-215
249. Carlisle Clinic uses patient-visits as its measure of activity. During December, the clinic
budgeted for 2,500 patient-visits, but its actual level of activity was 2,100 patient-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:
Actual results for December:
Required:
Prepare a report showing the clinic’s revenue and spending variances for December. Label each
variance as favorable (F) or unfavorable (U).
10-217
250. Stailey Clinic uses patient-visits as its measure of activity. During September, the clinic
budgeted for 3,200 patient-visits, but its actual level of activity was 2,800 patient-visits. The clinic
uses the following revenue and cost formulas in its budgeting, where q is the number of patient–
visits:
Revenue: $34.90q
Personnel expenses: $27,300 + $10.30q
Medical supplies: $1,400 + $6.50q
Occupancy expenses: $6,000 + $1.80q
Administrative expenses: $5,300 + $0.40q
The clinic reported the following actual results for September:
Required:
Prepare a report showing the clinic’s revenue and spending variances for September. Label each
variance as favorable (F) or unfavorable (U).
10-218
251. Glassey Clinic uses patient-visits as its measure of activity. The clinic bases its budgets
on the following information: Revenue should be $41.80 per patient-visit. Personnel expenses
should be $35,400 per month plus $10.60 per patient-visit. Medical supplies should be $700 per
month plus $7.90 per patient-visit. Occupancy expenses should be $8,800 per month plus $1.30
per patient-visit. Administrative expenses should be $5,600 per month plus $0.40 per patient-visit.
The clinic reported the following actual results for February:
Required:
Prepare a report showing the clinic’s revenue and spending variances for February. Label each
variance as favorable (F) or unfavorable (U).
10-219
252. Pinion Memorial Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for August was based on 2,700 meals. The diner’s director has
provided the following cost formulas to use in budgets:
The director has also provided the diner’s statement of actual expenses for the month:
Required:
Prepare a report showing the spending variances for each of the expenses and for total expenses
for August. Label each variance as favorable (F) or unfavorable (U).
10-220
253. Hernande Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for October was based on 2,800 meals. The diner’s director has
provided the following cost data to use in the budget: groceries, $2.45 per meal; kitchen
operations, $5,200 per month plus $1.70 per meal; administrative expenses, $2,600 per month
plus $0.65 per meal; and fundraising expenses, $1,100 per month. The director has also provided
the diner’s statement of actual expenses for the month:
Required:
Prepare a report showing the diner’s spending variances for each of the expenses and for total
expenses for October. Label each variance as favorable (F) or unfavorable (U).