8-681
188.
Linscott Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During July, the company
budgeted for 5,400 units, but its actual level of activity was 5,380 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual
results for July:
Data used in budgeting:
Fixed element
per month
Variable
element per unit
Revenue
−
$36.60
Direct labor
$0
$5.30
Direct materials
0
11.30
Manufacturing overhead
42,800
1.90
Selling and administrative expenses
29,900
0.10
Total expenses
$72,700
$18.60
Actual results for July:
Revenue
$206,318
Direct labor
$29,814
Direct materials
$58,224
Manufacturing overhead
$51,982
Selling and administrative
expenses
$29,458
The manufacturing overhead in the flexible budget for July would be closest to:
8-682
8-683
189.
Linscott Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During July, the company
budgeted for 5,400 units, but its actual level of activity was 5,380 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual
results for July:
Data used in budgeting:
Fixed element
per month
Variable
element per unit
Revenue
−
$36.60
Direct labor
$0
$5.30
Direct materials
0
11.30
Manufacturing overhead
42,800
1.90
Selling and administrative expenses
29,900
0.10
Total expenses
$72,700
$18.60
Actual results for July:
Revenue
$206,318
Direct labor
$29,814
Direct materials
$58,224
Manufacturing overhead
$51,982
Selling and administrative
expenses
$29,458
The spending variance for direct materials in July would be closest to:
8-684
8-685
190.
Stitt 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 5,900 units, but its actual level of activity was 5,880 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
−
$40.90
Direct labor
$0
$6.30
Direct materials
0
16.80
Manufacturing overhead
49,000
1.20
Selling and administrative expenses
21,200
0.80
Total expenses
$70,200
$25.10
Actual results for November:
Revenue
$251,552
Direct labor
$35,264
Direct materials
$95,134
Manufacturing overhead
$57,816
Selling and administrative
expenses
$25,404
The direct labor in the planning budget for November would be closest to:
8-686
8-687
191.
Stitt 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 5,900 units, but its actual level of activity was 5,880 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
−
$40.90
Direct labor
$0
$6.30
Direct materials
0
16.80
Manufacturing overhead
49,000
1.20
Selling and administrative expenses
21,200
0.80
Total expenses
$70,200
$25.10
Actual results for November:
Revenue
$251,552
Direct labor
$35,264
Direct materials
$95,134
Manufacturing overhead
$57,816
Selling and administrative
expenses
$25,404
The manufacturing overhead in the flexible budget for November would be closest to:
8-688
8-689
192.
Stitt 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 5,900 units, but its actual level of activity was 5,880 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
−
$40.90
Direct labor
$0
$6.30
Direct materials
0
16.80
Manufacturing overhead
49,000
1.20
Selling and administrative expenses
21,200
0.80
Total expenses
$70,200
$25.10
Actual results for November:
Revenue
$251,552
Direct labor
$35,264
Direct materials
$95,134
Manufacturing overhead
$57,816
Selling and administrative
expenses
$25,404
The spending variance for manufacturing overhead in November would be closest to:
8-690
8-691
193.
Lantagne Clinic uses client-visits as its measure of activity. During May, the clinic
budgeted for 3,800 client-visits, but its actual level of activity was 3,820 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for May:
Data used in budgeting:
Fixed
element
per
month
Variable
element
per
client-
visit
Revenue
−
$38.20
Personnel
expenses
$36,800
$11.30
Medical supplies
1,700
5.20
Occupancy
expenses
10,200
2.00
Administrative
expenses
7,600
0.40
Total expenses
$56,300
$18.90
Actual results for May:
Revenue
$145,664
Personnel expenses
$80,786
Medical supplies
$21,314
Occupancy expenses
$17,960
Administrative expenses
$8,848
The net operating income in the planning budget for May would be closest to:
8-692
8-693
194.
Lantagne Clinic uses client-visits as its measure of activity. During May, the clinic
budgeted for 3,800 client-visits, but its actual level of activity was 3,820 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for May:
Data used in budgeting:
Fixed
element
per
month
Variable
element
per
client-
visit
Revenue
−
$38.20
Personnel
expenses
$36,800
$11.30
Medical supplies
1,700
5.20
Occupancy
expenses
10,200
2.00
Administrative
expenses
7,600
0.40
Total expenses
$56,300
$18.90
Actual results for May:
Revenue
$145,664
Personnel expenses
$80,786
Medical supplies
$21,314
Occupancy expenses
$17,960
Administrative expenses
$8,848
The net operating income in the flexible budget for May would be closest to:
8-694
8-695
195.
Lantagne Clinic uses client-visits as its measure of activity. During May, the clinic
budgeted for 3,800 client-visits, but its actual level of activity was 3,820 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for May:
Data used in budgeting:
Fixed
element
per
month
Variable
element
per
client-
visit
Revenue
–
$38.20
Personnel
expenses
$36,800
$11.30
Medical supplies
1,700
5.20
Occupancy
expenses
10,200
2.00
Administrative
expenses
7,600
0.40
Total expenses
$56,300
$18.90
Actual results for May:
Revenue
$145,664
Personnel expenses
$80,786
Medical supplies
$21,314
Occupancy expenses
$17,960
Administrative expenses
$8,848
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 May would be closest to:
8-696
8-697
196.
Perla 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 March, the kennel budgeted for 2,200
tenant-days, but its actual level of activity was 2,160 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for March:
Data used in budgeting:
Fixed
element
per
month
Variable
element
per
tenant-
day
Revenue
−
$32.60
Wages and
salaries
$2,800
$7.30
Food and
supplies
900
8.20
Facility expenses
9,000
4.80
Administrative
expenses
6,200
0.20
Total expenses
$18,900
$20.50
Actual results for March:
Revenue
$69,996
Wages and salaries
$18,408
Food and supplies
$19,092
Facility expenses
$18,498
Administrative expenses
$6,652
8-698
The wages and salaries in the planning budget for March would be closest to:
8-699
197.
Perla 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 March, the kennel budgeted for 2,200
tenant-days, but its actual level of activity was 2,160 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for March:
Data used in budgeting:
Fixed
element
per
month
Variable
element
per
tenant-
day
Revenue
−
$32.60
Wages and
salaries
$2,800
$7.30
Food and
supplies
900
8.20
Facility expenses
9,000
4.80
Administrative
expenses
6,200
0.20
Total expenses
$18,900
$20.50
Actual results for March:
Revenue
$69,996
Wages and salaries
$18,408
Food and supplies
$19,092
Facility expenses
$18,498
Administrative expenses
$6,652
The food and supplies in the flexible budget for March would be closest to:
8-700