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227. Hagel Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 2,300 client-visits, but its actual level of activity was 2,320 client-visits. The clinic 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
client-visit
Revenue − $44.60
Personnel expenses $23,200 $15.10
Medical supplies 900 7.40
Occupancy expenses 6,500 2.00
Administrative expenses 4,000 0.20
Total expenses $34,600 $24.70
Actual results for July:
Revenue $100,902
Personnel expenses $60,922
Medical supplies $18,648
Occupancy expenses $11,290
Administrative expenses $4,594
The revenue variance for July would be closest to:
228. Hagel Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 2,300 client-visits, but its actual level of activity was 2,320 client-visits. The clinic 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
client-visit
Revenue − $44.60
Personnel expenses $23,200 $15.10
Medical supplies 900 7.40
Occupancy expenses 6,500 2.00
Administrative expenses 4,000 0.20
Total expenses $34,600 $24.70
Actual results for July:
Revenue $100,902
Personnel expenses $60,922
Medical supplies $18,648
Occupancy expenses $11,290
Administrative expenses $4,594
The spending variance for medical supplies in July would be closest to:
229. Hagel Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 2,300 client-visits, but its actual level of activity was 2,320 client-visits. The clinic 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
client-visit
Revenue - $44.60
Personnel expenses $23,200 $15.10
Medical supplies 900 7.40
Occupancy expenses 6,500 2.00
Administrative expenses 4,000 0.20
Total expenses $34,600 $24.70
Actual results for July:
Revenue $100,902
Personnel expenses $60,922
Medical supplies $18,648
Occupancy expenses $11,290
Administrative expenses $4,594
The spending variance for occupancy expenses in July would be closest to:
230. Hagel Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 2,300 client-visits, but its actual level of activity was 2,320 client-visits. The clinic 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
client-visit
Revenue - $44.60
Personnel expenses $23,200 $15.10
Medical supplies 900 7.40
Occupancy expenses 6,500 2.00
Administrative expenses 4,000 0.20
Total expenses $34,600 $24.70
Actual results for July:
Revenue $100,902
Personnel expenses $60,922
Medical supplies $18,648
Occupancy expenses $11,290
Administrative expenses $4,594
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 July
would be closest to:
231. Diemert Corporation bases its budgets on machine-hours. The company's static planning
budget for June appears below:
Budgeted number of machine-hours 5,600
Supplies (@ $9.20 per machine-hour) $51,520
Power (@ $9.30 per machine-hour) 52,080
Salaries 61,600
Equipment depreciation 67,760
Total $232,960
Actual results for the month were:
Actual number of machine-hours 5,900
Supplies $49,100
Power $58,630
Salaries $60,680
Equipment depreciation $67,140
The spending variance for supplies costs in the performance report for the month should be:
232. Diemert Corporation bases its budgets on machine-hours. The company's static planning
budget for June appears below:
Budgeted number of machine-hours 5,600
Supplies (@ $9.20 per machine-hour) $51,520
Power (@ $9.30 per machine-hour) 52,080
Salaries 61,600
Equipment depreciation 67,760
Total $232,960
Actual results for the month were:
Actual number of machine-hours 5,900
Supplies $49,100
Power $58,630
Salaries $60,680
Equipment depreciation $67,140
The spending variance for power costs in the performance report for the month should be:
233. Diemert Corporation bases its budgets on machine-hours. The company's static planning
budget for June appears below:
Budgeted number of machine-hours 5,600
Supplies (@ $9.20 per machine-hour) $51,520
Power (@ $9.30 per machine-hour) 52,080
Salaries 61,600
Equipment depreciation 67,760
Total $232,960
Actual results for the month were:
Actual number of machine-hours 5,900
Supplies $49,100
Power $58,630
Salaries $60,680
Equipment depreciation $67,140
The spending variance for equipment depreciation in the performance report for the month
should be:
234. Kudej Printing uses two measures of activity, press runs and book set-ups, in the cost
formulas in its budgets and performance reports. The cost formula for wages and salaries is
$8,360 per month plus $570 per press run plus $910 per book set-up. The company expected its
activity in May to be 194 press runs and 74 book set-ups, but the actual activity was 195 press
runs and 72 book set-ups. The actual cost for wages and salaries in May was $188,370.
The wages and salaries in the planning budget for May would be closest to:
235. Kudej Printing uses two measures of activity, press runs and book set-ups, in the cost
formulas in its budgets and performance reports. The cost formula for wages and salaries is
$8,360 per month plus $570 per press run plus $910 per book set-up. The company expected its
activity in May to be 194 press runs and 74 book set-ups, but the actual activity was 195 press
runs and 72 book set-ups. The actual cost for wages and salaries in May was $188,370.
The wages and salaries in the flexible budget for May would be closest to:
236. Kudej Printing uses two measures of activity, press runs and book set-ups, in the cost
formulas in its budgets and performance reports. The cost formula for wages and salaries is
$8,360 per month plus $570 per press run plus $910 per book set-up. The company expected its
activity in May to be 194 press runs and 74 book set-ups, but the actual activity was 195 press
runs and 72 book set-ups. The actual cost for wages and salaries in May was $188,370.
The spending variance for wages and salaries in May would be closest to:
237. Bobe Air uses two measures of activity, flights and passengers, in the cost formulas in its
budgets and performance reports. The cost formula for plane operating costs is $44,580 per
month plus $2,390 per flight plus $8 per passenger. The company expected its activity in May to
be 68 flights and 211 passengers, but the actual activity was 71 flights and 210 passengers. The
actual cost for plane operating costs in May was $215,140.
The plane operating costs in the planning budget for May would be closest to:
238. Bobe Air uses two measures of activity, flights and passengers, in the cost formulas in its
budgets and performance reports. The cost formula for plane operating costs is $44,580 per
month plus $2,390 per flight plus $8 per passenger. The company expected its activity in May to
be 68 flights and 211 passengers, but the actual activity was 71 flights and 210 passengers. The
actual cost for plane operating costs in May was $215,140.
The plane operating costs in the flexible budget for May would be closest to:
239. Bobe Air uses two measures of activity, flights and passengers, in the cost formulas in its
budgets and performance reports. The cost formula for plane operating costs is $44,580 per
month plus $2,390 per flight plus $8 per passenger. The company expected its activity in May to
be 68 flights and 211 passengers, but the actual activity was 71 flights and 210 passengers. The
actual cost for plane operating costs in May was $215,140.
The spending variance for plane operating costs in May would be closest to:
