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149. Ordway 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 June, the kennel budgeted for 2,100
tenant-days, but its actual level of activity was 2,070 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for June:
Data used in budgeting:
Fixed element
per month Variable
element per
tenant-day
Revenue − $35.40
Wages and salaries $3,200 $6.80
Food and supplies 500 9.90
Facility expenses 9,300 4.80
Administrative expenses 6,200 0.20
Total expenses $19,200 $21.70
Actual results for June:
Revenue $73,868
Wages and salaries $17,116
Food and supplies $21,883
Facility expenses $19,656
Administrative expenses $6,624
The facility expenses in the flexible budget for June would be closest to:
150. Ordway 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 June, the kennel budgeted for 2,100
tenant-days, but its actual level of activity was 2,070 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for June:
Data used in budgeting:
Fixed element
per month Variable
element per
tenant-day
Revenue - $35.40
Wages and salaries $3,200 $6.80
Food and supplies 500 9.90
Facility expenses 9,300 4.80
Administrative expenses 6,200 0.20
Total expenses $19,200 $21.70
Actual results for June:
Revenue $73,868
Wages and salaries $17,116
Food and supplies $21,883
Facility expenses $19,656
Administrative expenses $6,624
The net operating income in the flexible budget for June would be closest to:
151. Letts Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During January, the company
budgeted for 7,000 units, but its actual level of activity was 6,970 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 - $30.40
Direct labor $0 $6.10
Direct materials 0 8.70
Manufacturing overhead 46,700 1.80
Selling and administrative expenses 27,800 0.20
Total expenses $74,500 $16.80
The selling and administrative expenses in the planning budget for January would be closest to:
152. Letts Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During January, the company
budgeted for 7,000 units, but its actual level of activity was 6,970 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 - $30.40
Direct labor $0 $6.10
Direct materials 0 8.70
Manufacturing overhead 46,700 1.80
Selling and administrative expenses 27,800 0.20
Total expenses $74,500 $16.80
The net operating income in the planning budget for January would be closest to:
153. Letts Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During January, the company
budgeted for 7,000 units, but its actual level of activity was 6,970 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 − $30.40
Direct labor $0 $6.10
Direct materials 0 8.70
Manufacturing overhead 46,700 1.80
Selling and administrative expenses 27,800 0.20
Total expenses $74,500 $16.80
The direct materials in the flexible budget for January would be closest to:
154. Shelby Boat Wash's cost formula for its cleaning equipment and supplies is $2,200 per
month plus $34 per boat. For the month of September, the company planned for activity of 82
boats, but the actual level of activity was 32 boats. The actual cleaning equipment and supplies
for the month was $3,340.
The cleaning equipment and supplies in the planning budget for September would be closest to:
155. Shelby Boat Wash's cost formula for its cleaning equipment and supplies is $2,200 per
month plus $34 per boat. For the month of September, the company planned for activity of 82
boats, but the actual level of activity was 32 boats. The actual cleaning equipment and supplies
for the month was $3,340.
The cleaning equipment and supplies in the flexible budget for September would be closest to:
156. Shelby Boat Wash's cost formula for its cleaning equipment and supplies is $2,200 per
month plus $34 per boat. For the month of September, the company planned for activity of 82
boats, but the actual level of activity was 32 boats. The actual cleaning equipment and supplies
for the month was $3,340.
The spending variance for cleaning equipment and supplies in September would be closest to:
157. Larance Detailing's cost formula for its materials and supplies is $2,230 per month plus
$1 per vehicle. For the month of November, the company planned for activity of 75 vehicles, but
the actual level of activity was 25 vehicles. The actual materials and supplies for the month was
$2,160.
The materials and supplies in the planning budget for November would be closest to:
158. Larance Detailing's cost formula for its materials and supplies is $2,230 per month plus
$1 per vehicle. For the month of November, the company planned for activity of 75 vehicles, but
the actual level of activity was 25 vehicles. The actual materials and supplies for the month was
$2,160.
The materials and supplies in the flexible budget for November would be closest to:
159. Larance Detailing's cost formula for its materials and supplies is $2,230 per month plus
$1 per vehicle. For the month of November, the company planned for activity of 75 vehicles, but
the actual level of activity was 25 vehicles. The actual materials and supplies for the month was
$2,160.
The spending variance for materials and supplies in November would be closest to:
160. Eberley Corporation's cost formula for its manufacturing overhead is $25,700 per month
plus $10 per machine-hour. For the month of July, the company planned for activity of 5,900
machine-hours, but the actual level of activity was 5,920 machine-hours. The actual
manufacturing overhead for the month was $86,800.
The manufacturing overhead in the planning budget for July would be closest to:
161. Eberley Corporation's cost formula for its manufacturing overhead is $25,700 per month
plus $10 per machine-hour. For the month of July, the company planned for activity of 5,900
machine-hours, but the actual level of activity was 5,920 machine-hours. The actual
manufacturing overhead for the month was $86,800.
The manufacturing overhead in the flexible budget for July would be closest to:
162. Eberley Corporation's cost formula for its manufacturing overhead is $25,700 per month
plus $10 per machine-hour. For the month of July, the company planned for activity of 5,900
machine-hours, but the actual level of activity was 5,920 machine-hours. The actual
manufacturing overhead for the month was $86,800.
The spending variance for manufacturing overhead in July would be closest to:
163. Lartey Corporation's cost formula for its selling and administrative expense is $22,200 per
month plus $27 per unit. For the month of December, the company planned for activity of 5,300
units, but the actual level of activity was 5,270 units. The actual selling and administrative
expense for the month was $168,150.
The selling and administrative expense in the planning budget for December would be closest to:
164. Lartey Corporation's cost formula for its selling and administrative expense is $22,200 per
month plus $27 per unit. For the month of December, the company planned for activity of 5,300
units, but the actual level of activity was 5,270 units. The actual selling and administrative
expense for the month was $168,150.
The selling and administrative expense in the flexible budget for December would be closest to:
165. Lartey Corporation's cost formula for its selling and administrative expense is $22,200 per
month plus $27 per unit. For the month of December, the company planned for activity of 5,300
units, but the actual level of activity was 5,270 units. The actual selling and administrative
expense for the month was $168,150.
The spending variance for selling and administrative expense in December would be closest to:
166. Pearse 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 December, the kennel budgeted for
3,000 tenant-days, but its actual level of activity was 2,980 tenant-days. The kennel has provided
the following data concerning the formulas used in its budgeting and its actual results for
December:
Data used in budgeting:
Fixed element
per month Variable element
per tenant-day
Revenue − $32.10
Wages and salaries $2,400 $7.00
Food and supplies 900 11.30
Facility expenses 8,600 3.50
Administrative expenses 6,700 0.30
Total expenses $18,600 $22.10
Actual results for December:
Revenue $97,978
Wages and salaries $23,530
Food and supplies $35,224
Facility expenses $19,780
Administrative expenses $7,404
The net operating income in the planning budget for December would be closest to:
