8-561
8-562
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
Budgeted variable costs:
patient-visit)
Total variable cost
Budgeted fixed costs:
The total cost at the activity level of 7,300 patient-visits per month should be:
8-563
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:
8-567
8-568
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
Revenue per unit
Contribution margin per unit
Total fixed expense
$77,700
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:
8-572
126.
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
Revenue per unit
unit
Contribution margin per unit
Total fixed expense
$68,600
The net operating income in the flexible budget for October would be closest to:
8-573
8-574
127.
Nicolaysen 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 5,700 units, but its actual level of activity was 5,690 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
−
$36.80
Direct labor
$0
$3.70
Direct materials
0
17.80
Manufacturing overhead
30,500
1.20
Selling and administrative expenses
26,800
0.30
Total expenses
$57,300
$23.00
Actual results for February:
Revenue
$207,302
Direct labor
$21,093
Direct materials
$104,952
Manufacturing overhead
$37,888
Selling and administrative
expenses
$29,787
The direct labor in the planning budget for February would be closest to:
8-575
8-576
128.
Nicolaysen 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 5,700 units, but its actual level of activity was 5,690 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
–
$36.80
Direct labor
$0
$3.70
Direct materials
0
17.80
Manufacturing overhead
30,500
1.20
Selling and administrative expenses
26,800
0.30
Total expenses
$57,300
$23.00
Actual results for February:
Revenue
$207,302
Direct labor
$21,093
Direct materials
$104,952
Manufacturing overhead
$37,888
Selling and administrative
expenses
$29,787
The selling and administrative expenses in the planning budget for February would be
closest to:
8-577
8-578
129.
Nicolaysen 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 5,700 units, but its actual level of activity was 5,690 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
–
$36.80
Direct labor
$0
$3.70
Direct materials
0
17.80
Manufacturing overhead
30,500
1.20
Selling and administrative expenses
26,800
0.30
Total expenses
$57,300
$23.00
Actual results for February:
Revenue
$207,302
Direct labor
$21,093
Direct materials
$104,952
Manufacturing overhead
$37,888
Selling and administrative
expenses
$29,787
Revenue per unit
The net operating income in the planning budget for February would be closest to:
8-579
130.
Lehnertz 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 7,100 units, but its actual level of activity was 7,150 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
–
$27.70
Direct labor
$0
$4.10
Direct materials
0
10.80
Manufacturing overhead
34,000
1.20
Selling and administrative expenses
21,800
0.70
Total expenses
$55,800
$16.80
Actual results for February:
Revenue
$205,485
Direct labor
$29,365
Direct materials
$74,980
Manufacturing overhead
$43,020
Selling and administrative
expenses
$27,505
The direct materials in the flexible budget for February would be closest to: