8-961
359.
Sinopoli Corporation bases its budgets on machine-hours. The company’s static planning
budget for September appears below:
Budgeted number of
machine-hours
8,500
Budgeted variable costs:
Supplies (@ $1.50 per
machine-hour)
$12,750
Power (@ $3.30 per
machine-hour)
28,050
Budgeted fixed costs:
Salaries
15,300
Equipment depreciation
37,400
Total expense
$93,500
Actual machine-hours (q)
Salaries ($15,300)
Equipment depreciation
($37,400)
Required:
Prepare a flexible budget for 8,600 machine-hours per month.
8-962
8-963
360.
Gearhart Corporation bases its budgets on the activity measure customers served. During
September, the company planned to serve 25,000 customers, but actually served 29,000
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
−
$3.10
Wages and salaries
$23,700
$0.80
Supplies
$0
$0.60
Insurance
$5,300
$0.00
Miscellaneous
expense
$3,200
$0.20
Actual customers served (q)
Required:
Prepare the company’s flexible budget for September based on the actual level of activity
for the month.
8-964
8-965
361.
During November, Guerreiro Clinic budgeted for 2,200 patient-visits, but its actual level of
activity was 2,500 patient-visits. Revenue should be $49.00 per patient-visit. Personnel
expenses should be $30,700 per month plus $14.70 per patient-visit. Medical supplies
should be $1,800 per month plus $6.50 per patient-visit. Occupancy expenses should be
$7,600 per month plus $1.40 per patient-visit. Administrative expenses should be $4,700
per month plus $0.10 per patient-visit.
Required:
Prepare the clinic’s flexible budget for November based on the actual level of activity for
the month.
8-966
362.
Cearns Memorial Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for December is to be based on 3,900 meals. The diner’s
director has provided the following cost formulas to use in the budget:
Fixed element per
month
Variable element per
meal
Groceries
$0
$3.45
Kitchen operations
$5,700
$1.10
Administrative
expenses
$3,100
$0.85
Fundraising expenses
$1,600
$0.00
Required:
Prepare the diner’s budget for the month of December. The budget will only contain the
costs listed above; no revenues will be on the budget.
Budgeted meals (q)
Kitchen operations ($5,700 + $1.10q)
Administrative expenses ($3,100 + $0.85q)
Total expense
$31,460
8-967
363.
Viel Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for April was based on 3,100 meals, but the diner actually
served 3,300 meals. The diner’s director has provided the following cost data to use in the
budget: groceries, $3.95 per meal; kitchen operations, $5,200 per month plus $1.40 per
meal; administrative expenses, $3,300 per month plus $0.80 per meal; and fundraising
expenses, $1,800 per month.
Required:
Prepare the diner’s flexible budget for the actual number of meals served in April. The
budget will only contain the costs listed above; no revenues will be on the budget.
8-968
364.
Mcindoe Clinic bases its budgets on the activity measure patient-visits. During May, the
clinic planned for an activity level of 3,200 patient-visits, but the activity level was actually
3,600 patient-visits. The clinic has provided the following data concerning the formulas it
uses in its budgeting:
Fixed element per
month
Variable element per patient-
visit
Revenue
–
$32.50
Personnel expenses
$24,700
$10.10
Medical supplies
$600
$6.10
Occupancy expenses
$7,700
$0.90
Administrative
expenses
$2,800
$0.20
Actual patient-visits (q)
Revenue ($32.50q)
Total expense
Net operating income
Required:
Prepare the clinic’s flexible budget for May based on the actual level of activity for the
month.
8-969
8-970
365.
Bracamonte Hospital bases its budgets on patient-visits. The hospital’s static planning
budget for November appears below:
Budgeted number of
patient-visits
8,100
Budgeted variable costs:
Supplies (@ $4.90 per
patient-visit)
$39,690
Laundry (@ $4.80 per
patient-visit)
38,880
Budgeted fixed costs:
Wages and salaries
46,980
Occupancy costs
44,550
Total expense
$170,100
Supplies
($4.90q)
Laundry
($4.80q)
Required:
Prepare a flexible budget for 8,900 patient-visits per month.
8-971
8-972
366.
During July, Heron Corporation plans to serve 23,000 customers. Revenue is $6.80 per
customer served. Wages and salaries are $39,900 per month plus $2.50 per customer
served. Supplies are $1.40 per customer served. Insurance is $10,300 per month.
Miscellaneous expenses are $4,800 per month plus $0.20 per customer served.
Required:
Prepare the company’s planning budget for July.
8-973
367.
Hey Clinic bases its budgets on patient-visits. During September, the clinic plans for a
level of activity of 2,500 patient-visits. The clinic has provided the following data
concerning the formulas it uses in its budgeting:
Fixed element per
month
Variable element per patient-
visit
Revenue
−
$60.90
Personnel expenses
$38,600
$18.10
Medical supplies
$1,700
$11.20
Occupancy expenses
$9,900
$2.70
Administrative
expenses
$6,200
$0.20
Budgeted patient-visits (q)
Revenue ($60.90q)
$152,250
Total expense
Required:
8-974
8-975
368.
During January, Desousa Clinic plans for an activity level of 3,200 patient-visits. Revenue
is $38.50 per patient-visit. Personnel expenses are $36,700 per month plus $10.20 per
patient-visit. Medical supplies are $1,800 per month plus $6.00 per patient-visit.
Occupancy expenses are $7,600 per month plus $1.50 per patient-visit. Administrative
expenses are $4,600 per month plus $0.20 per patient-visit.
Required:
Prepare the clinic’s planning budget for January.
8-976
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.
8-977
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.
8-978
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
Actual meals (q)
Groceries ($3.90q)
Kitchen operations ($4,300 +
$1.50q)
Administrative expenses
Fundraising expenses
($1,300)
Total expense
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.
8-979
8-980
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.