113. Prater Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During February, the company
budgeted for 5,400 units, but its actual level of activity was 5,380 units. The company 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 unit
Revenue − $31.10
Direct labor $0 $3.30
Direct materials 0 9.00
Manufacturing overhead 44,600 1.80
Selling and administrative expenses 26,700 0.10
Total expenses $71,300 $14.20
Actual results for February:
Revenue $169,648
Direct labor $18,164
Direct materials $50,810
Manufacturing overhead $53,734
Selling and administrative expenses $28,278
The manufacturing overhead in the flexible budget for February would be closest to:
114. Prater Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During February, the company
budgeted for 5,400 units, but its actual level of activity was 5,380 units. The company 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 unit
Revenue − $31.10
Direct labor $0 $3.30
Direct materials 0 9.00
Manufacturing overhead 44,600 1.80
Selling and administrative expenses 26,700 0.10
Total expenses $71,300 $14.20
Actual results for February:
Revenue $169,648
Direct labor $18,164
Direct materials $50,810
Manufacturing overhead $53,734
Selling and administrative expenses $28,278
The net operating income in the flexible budget for February would be closest to:
115. Bard Hotel bases its budgets on guest-days. The hotel’s static budget for January
appears below:
Budgeted number of guest-days 9,600
Budgeted variable costs:
Supplies (@ $7.50 per guest-day) $72,000
Laundry (@ $2.30 per guest-day) 22,080
Total variable cost 94,080
Budgeted fixed costs:
Wages and salaries 95,040
Occupancy costs 21,120
Total fixed cost 116,160
Total cost $210,240
The total variable cost at the activity level of 10,200 guest-days per month should be:
116. Bard Hotel bases its budgets on guest-days. The hotel’s static budget for January
appears below:
Budgeted number of guest-days 9,600
Budgeted variable costs:
Supplies (@ $7.50 per guest-day) $72,000
Laundry (@ $2.30 per guest-day) 22,080
Total variable cost 94,080
Budgeted fixed costs:
Wages and salaries 95,040
Occupancy costs 21,120
Total fixed cost 116,160
Total cost $210,240
The total fixed cost at the activity level of 10,600 guest-days per month should be:
117. Bard Hotel bases its budgets on guest-days. The hotel’s static budget for January
appears below:
Budgeted number of guest-days 9,600
Budgeted variable costs:
Supplies (@ $7.50 per guest-day) $72,000
Laundry (@ $2.30 per guest-day) 22,080
Total variable cost 94,080
Budgeted fixed costs:
Wages and salaries 95,040
Occupancy costs 21,120
Total fixed cost 116,160
Total cost $210,240
The total cost at the activity level of 10,300 guest-days per month should be:
118. Hettinger Hospital bases its budgets on patient-visits. The hospital’s static budget for
March appears below:
Budgeted number of patient-visits 6,800
Budgeted variable costs:
Supplies (@ $4.80 per patient-visit) $32,640
Laundry (@ $6.70 per patient-visit) 45,560
Total variable cost 78,200
Budgeted fixed costs:
Wages and salaries 42,160
Occupancy costs 67,320
Total fixed cost 109,480
Total cost $187,680
The total variable cost at the activity level of 7,200 patient-visits per month should be:
119. Hettinger Hospital bases its budgets on patient-visits. The hospital’s static budget for
March appears below:
Budgeted number of patient-visits 6,800
Budgeted variable costs:
Supplies (@ $4.80 per patient-visit) $32,640
Laundry (@ $6.70 per patient-visit) 45,560
Total variable cost 78,200
Budgeted fixed costs:
Wages and salaries 42,160
Occupancy costs 67,320
Total fixed cost 109,480
Total cost $187,680
The total fixed cost at the activity level of 7,700 patient-visits per month should be:
120. Hettinger Hospital bases its budgets on patient-visits. The hospital’s static budget for
March appears below:
Budgeted number of patient-visits 6,800
Budgeted variable costs:
Supplies (@ $4.80 per patient-visit) $32,640
Laundry (@ $6.70 per patient-visit) 45,560
Total variable cost 78,200
Budgeted fixed costs:
Wages and salaries 42,160
Occupancy costs 67,320
Total fixed cost 109,480
Total cost $187,680
The total cost at the activity level of 7,300 patient-visits per month should be:
121. Illescas Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During December, the company
budgeted for 6,400 units, but its actual level of activity was 6,440 units. The company has
provided the following data concerning the formulas to be used in its budgeting:
Fixed element
per month Variable
element per unit
Revenue − $32.50
Direct labor $0 $6.30
Direct materials 0 8.70
Manufacturing overhead 48,600
1.70
Selling and administrative expenses 29,100
0.70
Total expenses $77,700 $17.40
The direct labor in the planning budget for December would be closest to:
122. Illescas Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During December, the company
budgeted for 6,400 units, but its actual level of activity was 6,440 units. The company has
provided the following data concerning the formulas to be used in its budgeting:
Fixed element
per month Variable
element per unit
Revenue − $32.50
Direct labor $0 $6.30
Direct materials 0 8.70
Manufacturing overhead 48,600
1.70
Selling and administrative expenses 29,100
0.70
Total expenses $77,700 $17.40
The selling and administrative expenses in the planning budget for December would be closest
to:
123. Illescas Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During December, the company
budgeted for 6,400 units, but its actual level of activity was 6,440 units. The company has
provided the following data concerning the formulas to be used in its budgeting:
Fixed element
per month Variable
element per unit
Revenue – $32.50
Direct labor $0 $6.30
Direct materials 0 8.70
Manufacturing overhead 48,600 1.70
Selling and administrative expenses 29,100 0.70
Total expenses $77,700 $17.40
The net operating income in the planning budget for December would be closest to:
124. Dancause Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During October, the company
budgeted for 5,100 units, but its actual level of activity was 5,090 units. The company has
provided the following data concerning the formulas to be used in its budgeting:
Fixed element
per month Variable
element per unit
Revenue − $39.20
Direct labor $0 $5.40
Direct materials 0 13.20
Manufacturing overhead 45,800 1.70
Selling and administrative expenses 22,800 0.50
Total expenses $68,600 $20.80
The direct materials in the flexible budget for October would be closest to:
125. Dancause Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During October, the company
budgeted for 5,100 units, but its actual level of activity was 5,090 units. The company has
provided the following data concerning the formulas to be used in its budgeting:
Fixed element
per month Variable
element per unit
Revenue − $39.20
Direct labor $0 $5.40
Direct materials 0 13.20
Manufacturing overhead 45,800 1.70
Selling and administrative expenses 22,800 0.50
Total expenses $68,600 $20.80
The manufacturing overhead in the flexible budget for October would be closest to: