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217. Smithj 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 February, the kennel budgeted for 3,500
tenant-days, but its actual level of activity was 3,490 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Fixed element
per month Variable
element per
tenant-day
Revenue − $27.80
Wages and salaries $2,000 $5.10
Food and supplies 1,100 9.10
Facility expenses 9,200 4.70
Administrative expenses 7,600 0.40
Total expenses $19,900 $19.30
Actual results for February:
Revenue $96,382
Wages and salaries $19,529
Food and supplies $33,899
Facility expenses $25,203
Administrative expenses $8,956
The spending variance for food and supplies in February would be closest to:
218. Smithj 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 February, the kennel budgeted for 3,500
tenant-days, but its actual level of activity was 3,490 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Fixed
element per
month Variable
element per
tenant-day
Revenue − $27.80
Wages and salaries $2,000 $5.10
Food and supplies 1,100 9.10
Facility expenses 9,200 4.70
Administrative expenses 7,600 0.40
Total expenses $19,900 $19.30
Actual results for February:
Revenue $96,382
Wages and salaries $19,529
Food and supplies $33,899
Facility expenses $25,203
Administrative expenses $8,956
The spending variance for facility expenses in February would be closest to:
219. Smithj 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 February, the kennel budgeted for 3,500
tenant-days, but its actual level of activity was 3,490 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Fixed element
per month Variable
element per
tenant-day
Revenue - $27.80
Wages and salaries $2,000 $5.10
Food and supplies 1,100 9.10
Facility expenses 9,200 4.70
Administrative expenses 7,600 0.40
Total expenses $19,900 $19.30
Actual results for February:
Revenue $96,382
Wages and salaries $19,529
Food and supplies $33,899
Facility expenses $25,203
Administrative expenses $8,956
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
February would be closest to:
220. Privett Hospital bases its budgets on patient-visits. The hospital's static planning budget
for November appears below:
Budgeted number of patient-visits 3,500
Supplies (@ $3.70 per patient-visit) $12,950
Laundry (@ $4.90 per patient-visit) 17,150
Salaries 18,550
Occupancy costs 19,250
Total $67,900
Actual results for the month were:
Actual number of patient-visits 3,700
Supplies $12,830
Laundry $17,650
Salaries $19,220
Occupancy costs $20,190
The spending variance for supplies costs in the performance report for the month is:
221. Privett Hospital bases its budgets on patient-visits. The hospital's static planning budget
for November appears below:
Budgeted number of patient-visits 3,500
Supplies (@ $3.70 per patient-visit) $12,950
Laundry (@ $4.90 per patient-visit) 17,150
Salaries 18,550
Occupancy costs 19,250
Total $67,900
Actual results for the month were:
Actual number of patient-visits 3,700
Supplies $12,830
Laundry $17,650
Salaries $19,220
Occupancy costs $20,190
The spending variance for laundry costs in the performance report for the month is:
222. Privett Hospital bases its budgets on patient-visits. The hospital's static planning budget
for November appears below:
Budgeted number of patient-visits 3,500
Supplies (@ $3.70 per patient-visit) $12,950
Laundry (@ $4.90 per patient-visit) 17,150
Salaries 18,550
Occupancy costs 19,250
Total $67,900
Actual results for the month were:
Actual number of patient-visits 3,700
Supplies $12,830
Laundry $17,650
Salaries $19,220
Occupancy costs $20,190
The spending variance for occupancy costs in the performance report for the month is:
223. Gilson Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During April, the company
budgeted for 5,100 units, but its actual level of activity was 5,060 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for April:
Data used in budgeting:
Fixed element
per month Variable
element per unit
Revenue − $35.90
Direct labor $0 $7.80
Direct materials 0 10.10
Manufacturing overhead 38,600 1.90
Selling and administrative expenses 21,000 0.40
Total expenses $59,600 $20.20
Actual results for April:
Revenue $179,164
Direct labor $41,248
Direct materials $49,086
Manufacturing overhead $48,544
Selling and administrative expenses $22,354
The revenue variance for April would be closest to:
224. Gilson Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During April, the company
budgeted for 5,100 units, but its actual level of activity was 5,060 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for April:
Data used in budgeting:
Fixed element
per month Variable
element per unit
Revenue − $35.90
Direct labor $0 $7.80
Direct materials 0 10.10
Manufacturing overhead 38,600 1.90
Selling and administrative expenses 21,000 0.40
Total expenses $59,600 $20.20
Actual results for April:
Revenue $179,164
Direct labor $41,248
Direct materials $49,086
Manufacturing overhead $48,544
Selling and administrative expenses $22,354
The spending variance for direct materials in April would be closest to:
225. Gilson Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During April, the company
budgeted for 5,100 units, but its actual level of activity was 5,060 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for April:
Data used in budgeting:
Fixed element
per month Variable
element per unit
Revenue − $35.90
Direct labor $0 $7.80
Direct materials 0 10.10
Manufacturing overhead 38,600 1.90
Selling and administrative expenses 21,000 0.40
Total expenses $59,600 $20.20
Actual results for April:
Revenue $179,164
Direct labor $41,248
Direct materials $49,086
Manufacturing overhead $48,544
Selling and administrative expenses $22,354
The spending variance for manufacturing overhead in April would be closest to:
226. Gilson Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During April, the company
budgeted for 5,100 units, but its actual level of activity was 5,060 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for April:
Data used in budgeting:
Fixed element
per month Variable
element per unit
Revenue - $35.90
Direct labor $0 $7.80
Direct materials 0 10.10
Manufacturing overhead 38,600 1.90
Selling and administrative expenses 21,000 0.40
Total expenses $59,600 $20.20
Actual results for April:
Revenue $179,164
Direct labor $41,248
Direct materials $49,086
Manufacturing overhead $48,544
Selling and administrative expenses $22,354
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 April
would be closest to:
