8-541
8-542
110.
Zenon Kennel uses tenant-days as its measure of activity; an animal housed in the kennel
for one day is counted as one tenant-day. During July, the kennel budgeted for 3,300
tenant-days, but its actual level of activity was 3,260 tenant-days. The kennel 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
tenant-
day
Revenue
−
$27.60
Wages and salaries
$3,400
$5.10
Food and supplies
1,000
8.20
Facility expenses
8,600
4.90
Administrative expenses
7,000
0.40
Total expenses
$20,000
$18.60
Actual results for July:
Revenue
$87,446
Wages and salaries
$19,796
Food and supplies
$27,262
Facility expenses
$25,004
Administrative expenses
$8,704
The facility expenses in the flexible budget for July would be closest to:
8-543
8-544
111.
Zenon Kennel uses tenant-days as its measure of activity; an animal housed in the kennel
for one day is counted as one tenant-day. During July, the kennel budgeted for 3,300
tenant-days, but its actual level of activity was 3,260 tenant-days. The kennel 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
tenant-day
Revenue
−
$27.60
Wages and salaries
$3,400
$5.10
Food and supplies
1,000
8.20
Facility expenses
8,600
4.90
Administrative expenses
7,000
0.40
Total expenses
$20,000
$18.60
Actual results for July:
Revenue
$87,446
Wages and salaries
$19,796
Food and supplies
$27,262
Facility expenses
$25,004
Administrative expenses
$8,704
8-545
The net operating income in the flexible budget for July would be closest to:
8-546
112.
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
8-547
The direct labor in the planning budget for February would be closest to:
8-548
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
8-549
The manufacturing overhead in the flexible budget for February would be closest to:
8-550
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
8-551
The net operating income in the flexible budget for February would be closest to:
8-552
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
Budgeted variable costs:
Supplies (@ $7.50 per guest-
day)
The total variable cost at the activity level of 10,200 guest-days per month should be:
8-553
8-554
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
days
Budgeted fixed costs:
Wages and salaries
Occupancy costs
Total fixed cost
$116,160
The total fixed cost at the activity level of 10,600 guest-days per month should be:
8-555
8-556
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
Budgeted variable costs:
The total cost at the activity level of 10,300 guest-days per month should be:
8-557
8-558
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
visits
Budgeted variable costs:
patient-visit)
Laundry (@ $6.70 per
patient-visit)
Total variable cost
The total variable cost at the activity level of 7,200 patient-visits per month should be:
8-559
8-560
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
7,700
Budgeted fixed costs:
Wages and salaries
Occupancy costs
Total fixed cost
$109,480
The total fixed cost at the activity level of 7,700 patient-visits per month should be: