8-761
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:
8-762
8-763
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:
8-764
8-765
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:
8-766
8-767
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:
8-768
8-769
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:
8-770
8-771
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:
8-772
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:
8-773
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:
8-774
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:
8-775
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:
8-776
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:
8-777
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:
8-778
240.
Degregorio Corporation makes a product that uses a material with the following direct
material standards:
Standard quantity
3.8
kilos per unit
Standard price
$7.00
per kilo
The company produced 5,600 units in November using 21,750 kilos of the material. During
the month, the company purchased 24,800 kilos of the direct material at a total cost of
$168,640. The direct materials purchases variance is computed when the materials are
purchased.
The materials quantity variance for November is:
8-779
241.
Degregorio Corporation makes a product that uses a material with the following direct
material standards:
Standard quantity
3.8
kilos per unit
Standard price
$7.00
per kilo
The company produced 5,600 units in November using 21,750 kilos of the material. During
the month, the company purchased 24,800 kilos of the direct material at a total cost of
$168,640. The direct materials purchases variance is computed when the materials are
purchased.
The materials price variance for November is:
8-780
242.
Canevari Corporation makes a product that uses a material with the following standards:
Standard quantity
3.0
kilos per unit
Standard price
$2.00
per kilo
Standard cost
$6.00
per unit
The company budgeted for production of 1,300 units in April, but actual production was
1,200 units. The company used 3,750 kilos of direct material to produce this output. The
company purchased 4,100 kilos of the direct material at a total cost of $8,610. The direct
materials purchases variance is computed when the materials are purchased.
The materials quantity variance for April is: