10-221
254. Tajiri Corporation uses customers served as its measure of activity. The following report
compares the planning budget to the actual operating results for the month of May:
Required:
Prepare the company’s flexible budget performance report for May. Label each variance as
favorable (F) or unfavorable (U).
10-223
255. Sammartino Clinic uses patient-visits as its measure of activity. The following report
compares the planning budget to the actual operating results for the month of November:
Required:
Prepare the clinic’s flexible budget performance report for November. Label each variance as
favorable (F) or unfavorable (U).
10-225
256. Hemphill Corporation uses customers served as its measure of activity. During June, the
company budgeted for 20,000 customers, but actually served 19,000 customers. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for June:
Data used in budgeting:
Actual results for June:
Required:
Prepare the company’s flexible budget performance report for June. Label each variance as
favorable (F) or unfavorable (U).
10-227
257. Vieyra Corporation uses customers served as its measure of activity. During November,
the company budgeted for 36,000 customers, but actually served 39,000 customers. The company
uses the following revenue and cost formulas in its budgeting, where q is the number of
customers served:
Revenue: $2.50q
Wages and salaries: $21,500 + $0.70q
Supplies: $0.40q
Insurance: $6,100
Miscellaneous: $3,700 + $0.40q
The company reported the following actual results for November:
Required:
Prepare the company’s flexible budget performance report for November. Label each variance as
favorable (F) or unfavorable (U).
10-229
258. Schoeppner Corporation uses customers served as its measure of activity. During October,
the company budgeted for 39,000 customers, but actually served 42,000 customers. The company
bases its budgets on the following information: Revenue should be $3.10 per customer served.
Wages and salaries should be $38,100 per month plus $0.80 per customer served. Supplies should
be $0.40 per customer served. Insurance should be $9,600 per month. Miscellaneous expenses
should be $3,400 per month plus $0.40 per customer served. The company reported the following
actual results for October:
Required:
Prepare the company’s flexible budget performance report for October. Label each variance as
favorable (F) or unfavorable (U).
10-231
259. Adeyemo Clinic uses patient-visits as its measure of activity. During July, the clinic
budgeted for 2,500 patient-visits, but its actual level of activity was 2,800 patient-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for July:
Data used in budgeting:
Actual results for July:
Required:
Prepare the clinic’s flexible budget performance report for July. Label each variance as favorable
(F) or unfavorable (U).
10-233
260. Cayouette Clinic uses patient-visits as its measure of activity. During February, the clinic
budgeted for 2,400 patient-visits, but its actual level of activity was 2,700 patient-visits. The clinic
uses the following revenue and cost formulas in its budgeting, where q is the number of patient-
visits:
Revenue: $53.80q
Personnel expenses: $32,000 + $16.60q
Medical supplies: $700 + $8.80q
Occupancy expenses: $10,400 + $1.90q
Administrative expenses: $5,500 + $0.20q
The clinic reported the following actual results for February:
Required:
Prepare the clinic’s flexible budget performance report for February. Label each variance as
favorable (F) or unfavorable (U).
10-235
261. Tsui Clinic uses patient-visits as its measure of activity. During November, the clinic
budgeted for 3,400 patient-visits, but its actual level of activity was 2,900 patient-visits. The clinic
bases its budgets on the following information: Revenue should be $30.00 per patient-visit.
Personnel expenses should be $30,200 per month plus $7.70 per patient-visit. Medical supplies
should be $1,600 per month plus $5.20 per patient-visit. Occupancy expenses should be $7,400
per month plus $1.00 per patient-visit. Administrative expenses should be $3,900 per month plus
$0.20 per patient-visit. The clinic reported the following actual results for November:
Required:
Prepare the clinic’s flexible budget performance report for November. Label each variance as
favorable (F) or unfavorable (U).
10-237
262. Dreyfus Memorial Diner is a charity supported by donations that provides free meals to
the homeless. The diner’s budget for April was based on 2,100 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 flexible budget performance report showing both the activity variances and the
spending variances for each of the expenses and for total expenses for April. Label each variance
as favorable (F) or unfavorable (U).
10-239
263. Akes Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for August was based on 2,200 meals. The diner’s director has
provided the following cost data to use in the budget: groceries, $3.65 per meal; kitchen
operations, $5,400 per month plus $1.85 per meal; administrative expenses, $2,900 per month
plus $0.55 per meal; and fundraising expenses, $1,700 per month. The director has also provided
the diner’s statement of actual expenses for the month:
Required:
Prepare a flexible budget performance report showing both the activity variances and the
spending variances for each of the expenses and for total expenses for August. Label each
variance as favorable (F) or unfavorable (U).
