167. Pearse Kennel uses tenant-days as its measure of activity; an animal housed in the
kennel for one day is counted as one tenant-day. During December, the kennel budgeted for
3,000 tenant-days, but its actual level of activity was 2,980 tenant-days. The kennel has provided
the following data concerning the formulas used in its budgeting and its actual results for
December:
Data used in budgeting:
Fixed element
per month Variable element
per tenant-day
Revenue − $32.10
Wages and salaries $2,400 $7.00
Food and supplies 900 11.30
Facility expenses 8,600 3.50
Administrative expenses 6,700 0.30
Total expenses $18,600 $22.10
Actual results for December:
Revenue $97,978
Wages and salaries $23,530
Food and supplies $35,224
Facility expenses $19,780
Administrative expenses $7,404
The net operating income in the flexible budget for December would be closest to:
168. Hairston Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During November, the
company budgeted for 7,700 units, but its actual level of activity was 7,720 units. The company
has provided the following data concerning the formulas used in its budgeting and its actual
results for November:
Data used in budgeting:
Fixed element
per month Variable element
per unit
Revenue − $38.10
Direct labor $0 $7.80
Direct materials 0 16.50
Manufacturing overhead 39,900 1.60
Selling and administrative expenses 20,600 0.20
Total expenses $60,500 $26.10
Actual results for November:
Revenue $293,002
Direct labor $60,286
Direct materials $127,010
Manufacturing overhead $50,342
Selling and administrative expenses $21,104
The selling and administrative expenses in the planning budget for November would be closest
to:
169. Hairston Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During November, the
company budgeted for 7,700 units, but its actual level of activity was 7,720 units. The company
has provided the following data concerning the formulas used in its budgeting and its actual
results for November:
Data used in budgeting:
Fixed element
per month Variable element
per unit
Revenue − $38.10
Direct labor $0 $7.80
Direct materials 0 16.50
Manufacturing overhead 39,900 1.60
Selling and administrative expenses 20,600 0.20
Total expenses $60,500 $26.10
Actual results for November:
Revenue $293,002
Direct labor $60,286
Direct materials $127,010
Manufacturing overhead $50,342
Selling and administrative expenses $21,104
The direct materials in the flexible budget for November would be closest to:
170. Hairston Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During November, the
company budgeted for 7,700 units, but its actual level of activity was 7,720 units. The company
has provided the following data concerning the formulas used in its budgeting and its actual
results for November:
Data used in budgeting:
Fixed element
per month Variable element
per unit
Revenue − $38.10
Direct labor $0 $7.80
Direct materials 0 16.50
Manufacturing overhead 39,900 1.60
Selling and administrative expenses 20,600 0.20
Total expenses $60,500 $26.10
Actual results for November:
Revenue $293,002
Direct labor $60,286
Direct materials $127,010
Manufacturing overhead $50,342
Selling and administrative expenses $21,104
The spending variance for direct materials in November would be closest to:
171. Tabeling Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During August, the company
budgeted for 6,500 units, but its actual level of activity was 6,540 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for August:
Data used in budgeting:
Fixed element
per month Variable
element per unit
Revenue − $34.50
Direct labor $0 $4.40
Direct materials 0 12.70
Manufacturing overhead 48,100 1.40
Selling and administrative expenses 29,400 0.80
Total expenses $77,500 $19.30
Actual results for August:
Revenue $217,260
Direct labor $29,966
Direct materials $85,118
Manufacturing overhead $58,146
Selling and administrative expenses $33,092
The net operating income in the planning budget for August would be closest to:
172. Tabeling Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During August, the company
budgeted for 6,500 units, but its actual level of activity was 6,540 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for August:
Data used in budgeting:
Fixed element
per month Variable
element per unit
Revenue − $34.50
Direct labor $0 $4.40
Direct materials 0 12.70
Manufacturing overhead 48,100 1.40
Selling and administrative expenses 29,400 0.80
Total expenses $77,500 $19.30
Actual results for August:
Revenue $217,260
Direct labor $29,966
Direct materials $85,118
Manufacturing overhead $58,146
Selling and administrative expenses $33,092
The net operating income in the flexible budget for August would be closest to:
173. Tabeling Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During August, the company
budgeted for 6,500 units, but its actual level of activity was 6,540 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for August:
Data used in budgeting:
Fixed element
per month Variable
element per unit
Revenue − $34.50
Direct labor $0 $4.40
Direct materials 0 12.70
Manufacturing overhead 48,100 1.40
Selling and administrative expenses 29,400 0.80
Total expenses $77,500 $19.30
Actual results for August:
Revenue $217,260
Direct labor $29,966
Direct materials $85,118
Manufacturing overhead $58,146
Selling and administrative expenses $33,092
The overall revenue and spending variance (i.e., the variance for net operating income in the
revenue and spending variance column on the revenue and spending variances report) for August
would be closest to:
174. Buonocore Clinic uses client-visits as its measure of activity. During August, the clinic
budgeted for 2,800 client-visits, but its actual level of activity was 2,770 client–visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for August:
Data used in budgeting:
Fixed element
per month Variable element
per client-visit
Revenue − $46.20
Personnel expenses $31,800 $15.60
Medical supplies 1,800 6.10
Occupancy expenses 7,600 1.90
Administrative expenses 5,900 0.40
Total expenses $47,100 $24.00
Actual results for August:
Revenue $132,124
Personnel expenses $74,232
Medical supplies $18,697
Occupancy expenses $13,213
Administrative expenses $7,058
The personnel expenses in the planning budget for August would be closest to:
175. Buonocore Clinic uses client-visits as its measure of activity. During August, the clinic
budgeted for 2,800 client-visits, but its actual level of activity was 2,770 client–visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for August:
Data used in budgeting:
Fixed element
per month Variable element
per client-visit
Revenue − $46.20
Personnel expenses $31,800 $15.60
Medical supplies 1,800 6.10
Occupancy expenses 7,600 1.90
Administrative expenses 5,900 0.40
Total expenses $47,100 $24.00
Actual results for August:
Revenue $132,124
Personnel expenses $74,232
Medical supplies $18,697
Occupancy expenses $13,213
Administrative expenses $7,058
The medical supplies in the flexible budget for August would be closest to:
176. Buonocore Clinic uses client-visits as its measure of activity. During August, the clinic
budgeted for 2,800 client-visits, but its actual level of activity was 2,770 client–visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for August:
Data used in budgeting:
Fixed element
per month Variable element
per client-visit
Revenue − $46.20
Personnel expenses $31,800 $15.60
Medical supplies 1,800 6.10
Occupancy expenses 7,600 1.90
Administrative expenses 5,900 0.40
Total expenses $47,100 $24.00
Actual results for August:
Revenue $132,124
Personnel expenses $74,232
Medical supplies $18,697
Occupancy expenses $13,213
Administrative expenses $7,058
The revenue variance for August would be closest to: