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264. Blockmon Hospital bases its budgets on patient-visits. The hospital's static planning
budget for November appears below:
Required:
Prepare a flexible budget for 8,600 patient-visits per month.
265. Clines Corporation bases its budgets on machine-hours. The company's static planning
budget for November appears below:
Required:
Prepare a flexible budget for 9,800 machine-hours per month.
266. Meares Corporation bases its budgets on the activity measure customers served. During
May, the company plans to serve 27,000 customers. The company has provided the following data
concerning the formulas it uses in its budgeting:
Required:
Prepare the company's planning budget for May.
267. During August, Diga Corporation plans to serve 35,000 customers. The company uses the
following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue: $4.20q
Wages and salaries: $33,700 + $1.50q
Supplies: $0.70q
Insurance: $11,000
Miscellaneous: $4,800 + $0.40q
Required:
Prepare the company's planning budget for August.
268. During September, Kocab Corporation plans to serve 37,000 customers. Revenue is $2.80
per customer served. Wages and salaries are $33,300 per month plus $0.80 per customer served.
Supplies are $0.40 per customer served. Insurance is $9,000 per month. Miscellaneous expenses
are $5,300 per month plus $0.20 per customer served.
Required:
Prepare the company's planning budget for September.
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269. Vera Corporation bases its budgets on the activity measure customers served. During
September, the company planned to serve 28,000 customers, but actually served 27,000
customers. The company has provided the following data concerning the formulas it uses in its
budgeting:
Required:
Prepare the company's flexible budget for September based on the actual level of activity for the
month.
270. During May, Hiles Corporation budgeted for 31,000 customers, but actually served 29,000
customers. The company uses the following revenue and cost formulas in its budgeting, where q
is the number of customers served:
Revenue: $4.40q
Wages and salaries: $35,800 + $1.70q
Supplies: $0.60q
Insurance: $12,300
Miscellaneous: $5,500 + $0.10q
Required:
Prepare the company's flexible budget for May based on the actual level of activity for the month.
271. During February, Poetker Corporation budgeted for 29,000 customers, but actually served
28,000 customers. Revenue should be $4.70 per customer served. Wages and salaries should be
$31,700 per month plus $1.50 per customer served. Supplies should be $0.80 per customer
served. Insurance should be $8,400 per month. Miscellaneous expenses should be $7,400 per
month plus $0.40 per customer served.
Required:
Prepare the company's flexible budget for February based on the actual level of activity for the
month.
272. Mish Clinic bases its budgets on patient-visits. During November, the clinic plans for a
level of activity of 3,200 patient-visits. The clinic has provided the following data concerning the
formulas it uses in its budgeting:
Required:
Prepare the clinic's planning budget for November.
273. During January, Agron Clinic plans for an activity level of 2,500 patient-visits. The clinic
uses the following revenue and cost formulas in its budgeting, where q is the number of patient-
visits:
Revenue: $51.50q
Personnel expenses: $33,800 + $16.60q
Medical supplies: $700 + $7.40q
Occupancy expenses: $10,900 + $2.10q
Administrative expenses: $4,300 + $0.40q
Required:
Prepare the clinic's planning budget for January.
274. During March, Samorano Clinic plans for an activity level of 2,500 patient-visits. Revenue
is $42.10 per patient-visit. Personnel expenses are $30,400 per month plus $11.20 per patient-
visit. Medical supplies are $1,100 per month plus $6.50 per patient-visit. Occupancy expenses are
$6,500 per month plus $1.90 per patient-visit. Administrative expenses are $5,200 per month plus
$0.40 per patient-visit.
Required:
Prepare the clinic's planning budget for March.
275. Moss Clinic bases its budgets on the activity measure patient-visits. During August, the
clinic planned for an activity level of 2,100 patient-visits, but the activity level was actually 2,400
patient-visits. The clinic has provided the following data concerning the formulas it uses in its
budgeting:
Required:
Prepare the clinic's flexible budget for August based on the actual level of activity for the month.
276. During August, Cardenas Clinic budgeted for 3,900 patient-visits, but its actual level of
activity was 3,800 patient-visits. The clinic uses the following revenue and cost formulas in its
budgeting, where q is the number of patient-visits:
Revenue: $27.80q
Personnel expenses: $25,100 + $7.80q
Medical supplies: $1,100 + $5.60q
Occupancy expenses: $7,900 + $1.20q
Administrative expenses: $3,200 + $0.10q
Required:
Prepare the clinic's flexible budget for August based on the actual level of activity for the month.
277. During October, Keliihoomalu Clinic budgeted for 2,700 patient-visits, but its actual level
of activity was 2,200 patient-visits. Revenue should be $27.30 per patient-visit. Personnel
expenses should be $21,100 per month plus $6.80 per patient-visit. Medical supplies should be
$500 per month plus $4.90 per patient-visit. Occupancy expenses should be $5,700 per month
plus $0.90 per patient-visit. Administrative expenses should be $3,700 per month plus $0.40 per
patient-visit.
Required:
Prepare the clinic's flexible budget for October based on the actual level of activity for the month.
278. Poch Memorial Diner is a charity supported by donations that provides free meals to the
homeless. The diner's budget for September is to be based on 2,700 meals. The diner's director
has provided the following cost formulas to use in the budget:
Required:
Prepare the diner's budget for the month of September. The budget will only contain the costs
listed above; no revenues will be on the budget.
279. Barona Memorial Diner is a charity supported by donations that provides free meals to the
homeless. The diner's budget for March was based on 2,900 meals, but the diner actually served
3,000 meals. The diner's director has provided the following cost formulas to use in budgets:
Required:
Prepare the diner's flexible budget for the actual number of meals served in March. The budget
will only contain the costs listed above; no revenues will be on the budget.
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280. Hilario Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner's budget for September is to be based on 2,600 meals. The diner's director
has provided the following cost data to use in the budget: groceries, $2.10 per meal; kitchen
operations, $5,600 per month plus $1.80 per meal; administrative expenses, $3,700 per month
plus $0.55 per meal; and fundraising expenses, $1,400 per month.
Required:
Prepare the diner's budget for the month of September. The budget will only contain the costs
listed above; no revenues will be on the budget.
281. Marchant Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner's budget for June was based on 2,200 meals, but the diner actually served
1,800 meals. The diner's director has provided the following cost data to use in the budget:
groceries, $3.85 per meal; kitchen operations, $4,300 per month plus $1.70 per meal;
administrative expenses, $2,000 per month plus $0.45 per meal; and fundraising expenses, $1,100
per month.
Required:
Prepare the diner's flexible budget for the actual number of meals served in June. The budget will
only contain the costs listed above; no revenues will be on the budget.
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282. Carnes Tech is a for-profit vocational school. The school bases its budgets on two
measures of activity (i.e., cost drivers), namely student and course. The school uses the following
data in its budgeting:
In February, the school budgeted for 1,570 students and 143 courses. The actual activity for the
month was 1,370 students and 145 courses.
Required:
Prepare a report showing the school's activity variances for February. Label each variance as
favorable (F) or unfavorable (U).
