369. Capilla Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for October is to be based on 3,300 meals. The diner’s director has
provided the following cost data to use in the budget: groceries, $2.85 per meal; kitchen
operations, $4,100 per month plus $1.25 per meal; administrative expenses, $3,400 per month
plus $0.40 per meal; and fundraising expenses, $1,800 per month.
Required:
Prepare the diner’s budget for the month of October. The budget will only contain the costs
listed above; no revenues will be on the budget.
370. During October, Haubold Corporation budgeted for 30,000 customers, but actually served
29,000 customers. Revenue should be $3.80 per customer served. Wages and salaries should be
$31,200 per month plus $1.40 per customer served. Supplies should be $0.70 per customer
served. Insurance should be $8,500 per month. Miscellaneous expenses should be $3,700 per
month plus $0.10 per customer served.
Required:
Prepare the company’s flexible budget for October based on the actual level of activity for the
month.
371. Seekell Memorial Diner is a charity supported by donations that provides free meals to
the homeless. The diner’s budget for October was based on 2,500 meals, but the diner actually
served 2,900 meals. The diner’s director has provided the following cost formulas to use in
budgets:
Fixed element per month Variable element per meal
Groceries $0 $3.90
Kitchen operations $4,300 $1.50
Administrative expenses $3,200 $0.85
Fundraising expenses $1,300 $0.00
Required:
Prepare the diner’s flexible budget for the actual number of meals served in October. The budget
will only contain the costs listed above; no revenues will be on the budget.
372. During August, Kociolek Clinic plans for an activity level of 2,800 patient-visits. The clinic
uses the following revenue and cost formulas in its budgeting, where q is the number of patient–
visits:
Revenue: $28.20q
Personnel expenses: $22,200 + $7.60q
Medical supplies: $1,100 + $5.20q
Occupancy expenses: $5,100 + $1.00q
Administrative expenses: $3,200 + $0.40q
Required:
Prepare the clinic’s planning budget for August.
373. During February, Oshell Clinic budgeted for 3,600 patient-visits, but its actual level of
activity was 3,200 patient-visits. The clinic uses the following revenue and cost formulas in its
budgeting, where q is the number of patient-visits:
Revenue: $28.80q
Personnel expenses: $22,500 + $9.90q
Medical supplies: $1,200 + $4.70q
Occupancy expenses: $6,700 + $1.30q
Administrative expenses: $4,800 + $0.20q
Required:
Prepare the clinic’s flexible budget for February based on the actual level of activity for the
month.
374. During April, Cheatam Corporation budgeted for 27,000 customers, but actually served
23,000 customers. The company uses the following revenue and cost formulas in its budgeting,
where q is the number of customers served:
Revenue: $4.10q
Wages and salaries: $33,300 + $1.10q
Supplies: $0.70q
Insurance: $8,600
Miscellaneous expense: $3,700 + $0.40q
Required:
Prepare the company’s flexible budget for April based on the actual level of activity for the
month.
375. Sund Corporation bases its budgets on the activity measure customers served. During
April, the company plans to serve 38,000 customers. The company has provided the following
data concerning the formulas it uses in its budgeting:
Fixed element per month Variable element per
customer
Revenue – $2.10
Wages and salaries $25,000 $0.50
Supplies $0 $0.30
Insurance $6,200 $0.00
Miscellaneous expense $2,500 $0.40
Required:
Prepare the company’s planning budget for April.
376. During May, Cockrel Corporation plans to serve 34,000 customers. The company uses the
following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue: $2.90q
Wages and salaries: $25,400 + $0.90q
Supplies: $0.40q
Insurance: $7,000
Miscellaneous expense: $4,900 + $0.30q
Required:
Prepare the company’s planning budget for May.
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377. Branner Corporation uses customers served as its measure of activity. During June, the
company budgeted for 26,000 customers, but actually served 23,000 customers. The company
bases its budgets on the following information: Revenue should be $2.80 per customer served.
Wages and salaries should be $22,100 per month plus $0.70 per customer served. Supplies
should be $0.50 per customer served. Insurance should be $5,200 per month. Miscellaneous
expenses should be $2,100 per month plus $0.30 per customer served. The company reported the
following actual results for June:
Revenue $63,800
Wages and salaries $37,100
Supplies $9,900
Insurance $5,400
Miscellaneous expense $6,200
Required:
Prepare a report showing the company’s revenue and spending variances for June. Label each
variance as favorable (F) or unfavorable (U).
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378. Bruess Clinic uses patient-visits as its measure of activity. During July, the clinic
budgeted for 2,700 patient-visits, but its actual level of activity was 3,200 patient-visits. The clinic
uses the following revenue and cost formulas in its budgeting, where q is the number of patient–
visits:
Revenue: $49.60q
Personnel expenses: $31,200 + $15.10q
Medical supplies: $700 + $9.60q
Occupancy expenses: $10,000 + $2.00q
Administrative expenses: $7,000 + $0.20q
The clinic reported the following actual results for July:
Revenue $165,680
Personnel expenses $76,190
Medical supplies $31,790
Occupancy expenses $15,960
Administrative expenses $7,600
Required:
Prepare a report showing the clinic’s revenue and spending variances for July. Label each
variance as favorable (F) or unfavorable (U).
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379. Kestner Clinic uses patient-visits as its measure of activity. During September, the clinic
budgeted for 3,000 patient-visits, but its actual level of activity was 2,900 patient–visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for September:
Data used in budgeting:
Fixed element per month Variable element per
patient-visit
Revenue – $37.20
Personnel expenses $27,600 $11.30
Medical supplies $1,500 $6.80
Occupancy expenses $6,200 $1.70
Administrative expenses $3,600 $0.30
Actual results for September:
Revenue $105,010
Personnel expenses $61,020
Medical supplies $22,120
Occupancy expenses $10,930
Administrative expenses $4,570
Required:
Prepare a report showing the clinic’s revenue and spending variances for September. Label each
variance as favorable (F) or unfavorable (U).
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380. Satoe Corporation uses customers served as its measure of activity. During April, the
company budgeted for 25,000 customers, but actually served 23,000 customers. 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 customer
Revenue – $3.00
Wages and salaries $23,500 $0.80
Supplies $0 $0.60
Insurance $4,700 $0.00
Miscellaneous expense $3,600 $0.20
Actual results for April:
Revenue $70,000
Wages and salaries $42,800
Supplies $11,100
Insurance $4,500
Miscellaneous expense $9,300
Required:
Prepare a report showing the company’s revenue and spending variances for April. Label each
variance as favorable (F) or unfavorable (U).
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381. Lueders Memorial Diner is a charity supported by donations that provides free meals to
the homeless. The diner’s budget for April was based on 3,800 meals. The diner’s director has
provided the following cost formulas to use in budgets:
Fixed element per month Variable element per meal
Groceries $0 $2.15
Kitchen operations $5,400 $1.85
Administrative expenses $2,000 $0.65
Fundraising expenses $1,300 $0.00
The director has also provided the diner’s statement of actual expenses for the month:
Lueders Memorial Diner
Statement of Expenses
For the Month Ended April 30
Actual meals 4,100
Groceries $8,645
Kitchen operations 12,435
Administrative expenses 4,605
Fundraising expenses 1,320
Total expense $27,005
Required:
Prepare a report showing the revenue and spending variances for each of the expenses and for
total expenses for April. Label each variance as favorable (F) or unfavorable (U).
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382. Rothrock Clinic uses patient-visits as its measure of activity. During December, the clinic
budgeted for 3,400 patient-visits, but its actual level of activity was 3,200 patient-visits. The clinic
bases its budgets on the following information: Revenue should be $26.20 per patient-visit.
Personnel expenses should be $28,200 per month plus $6.70 per patient-visit. Medical supplies
should be $1,500 per month plus $3.30 per patient-visit. Occupancy expenses should be $6,800
per month plus $1.00 per patient-visit. Administrative expenses should be $5,000 per month plus
$0.20 per patient-visit. The clinic reported the following actual results for December:
Revenue $87,930
Personnel expenses $48,040
Medical supplies $12,010
Occupancy expenses $10,270
Administrative expenses $5,840
Required:
Prepare a report showing the clinic’s revenue and spending variances for December. Label each
variance as favorable (F) or unfavorable (U).
