8-581
131.
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 manufacturing overhead in the flexible budget for February would be closest to:
8-583
8-584
132.
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
Revenue per unit
The net operating income in the flexible budget for February would be closest to:
8-585
8-586
133.
Hepburn Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 3,200 client-visits, but its actual level of activity was 3,180 client-visits. The clinic has
provided the following data concerning the formulas to be used in its budgeting for July:
Fixed element
per month
Variable
element
per
client-
visit
Revenue
−
$45.60
Personnel
expenses
$37,300
$13.30
Medical supplies
1,100
8.50
Occupancy
expenses
9,800
2.40
Administrative
expenses
4,100
0.10
Total expenses
$52,300
$24.30
The personnel expenses in the planning budget for July would be closest to:
8-587
134.
Hepburn Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 3,200 client-visits, but its actual level of activity was 3,180 client-visits. The clinic has
provided the following data concerning the formulas to be used in its budgeting for July:
Fixed element
per month
Variable
element per
client-visit
Revenue
–
$45.60
Personnel expenses
$37,300
$13.30
Medical supplies
1,100
8.50
Occupancy expenses
9,800
2.40
Administrative expenses
4,100
0.10
Total expenses
$52,300
$24.30
The administrative expenses in the planning budget for July would be closest to:
8-588
8-589
135.
Hepburn Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 3,200 client-visits, but its actual level of activity was 3,180 client-visits. The clinic has
provided the following data concerning the formulas to be used in its budgeting for July:
Fixed element
per month
Variable
element per
client-visit
Revenue
–
$45.60
Personnel expenses
$37,300
$13.30
Medical supplies
1,100
8.50
Occupancy expenses
9,800
2.40
Administrative expenses
4,100
0.10
Total expenses
$52,300
$24.30
The net operating income in the planning budget for July would be closest to:
8-590
8-591
136.
Leaphart 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 May, the kennel budgeted for
2,800 tenant-days, but its actual level of activity was 2,840 tenant-days. The kennel has
provided the following data concerning the formulas to be used in its budgeting:
Fixed
element
per
month
Variable
element
per
tenant-
day
Revenue
–
$31.10
Wages and
salaries
$3,600
$5.40
Food and
supplies
700
12.40
Facility expenses
9,100
2.00
Administrative
expenses
6,200
0.40
Total expenses
$19,600
$20.20
The wages and salaries in the planning budget for May would be closest to:
8-593
137.
Leaphart 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 May, the kennel budgeted for
2,800 tenant-days, but its actual level of activity was 2,840 tenant-days. The kennel has
provided the following data concerning the formulas to be used in its budgeting:
Fixed
element
per
month
Variable
element
per
tenant-
day
Revenue
−
$31.10
Wages and
salaries
$3,600
$5.40
Food and
supplies
700
12.40
Facility
expenses
9,100
2.00
Administrative
expenses
6,200
0.40
Total expenses
$19,600
$20.20
The administrative expenses in the planning budget for May would be closest to:
8-594
8-595
138.
Leaphart 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 May, the kennel budgeted for
2,800 tenant-days, but its actual level of activity was 2,840 tenant-days. The kennel has
provided the following data concerning the formulas to be used in its budgeting:
Fixed
element
per
month
Variable
element
per
tenant-
day
Revenue
−
$31.10
Wages and
salaries
$3,600
$5.40
Food and
supplies
700
12.40
Facility
expenses
9,100
2.00
Administrative
expenses
6,200
0.40
Total expenses
$19,600
$20.20
Revenue per tenant-day
The net operating income in the planning budget for May would be closest to:
8-596
8-597
139.
Chirico Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 2,500 client-visits, but its actual level of activity was 2,550 client-visits. The
clinic 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
client-
visit
Revenue
−
$52.30
Personnel
expenses
$29,600
$15.50
Medical supplies
1,300
9.10
Occupancy
expenses
8,200
2.50
Administrative
expenses
6,000
0.40
Total expenses
$45,100
$27.50
Actual results for February:
Revenue
$138,875
Personnel expenses
$70,015
Medical supplies
$24,335
Occupancy expenses
$14,655
Administrative expenses
$6,880
The personnel expenses in the planning budget for February would be closest to:
8-598
8-599
140.
Chirico Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 2,500 client-visits, but its actual level of activity was 2,550 client-visits. The
clinic 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
client-
visit
Revenue
−
$52.30
Personnel
expenses
$29,600
$15.50
Medical supplies
1,300
9.10
Occupancy
expenses
8,200
2.50
Administrative
expenses
6,000
0.40
Total expenses
$45,100
$27.50
Actual results for February:
Revenue
$138,875
Personnel expenses
$70,015
Medical supplies
$24,335
Occupancy expenses
$14,655
Administrative expenses
$6,880
The occupancy expenses in the flexible budget for February would be closest to:
8-600