8-642
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
Revenue
−
Direct labor
$0
Direct materials
0
Manufacturing overhead
39,900
Selling and administrative expenses
20,600
Total expenses
$60,500
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:
8-643
8-644
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
Revenue
−
Direct labor
$0
Direct materials
0
Manufacturing overhead
39,900
Selling and administrative expenses
20,600
Total expenses
$60,500
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:
8-645
8-646
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:
8-647
8-648
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:
8-649
8-650
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:
8-651
8-652
8-653
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:
8-655
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:
8-657
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:
8-658
177.
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
Revenue
8-660