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181
207) Tennies Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 3,300 client-visits, but its actual level of activity was 3,290 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for November:
Data used in budgeting:
Fixed element
per month
Variable element
per client-visit
Revenue
-
$
35.40
Personnel expenses
$
29,500
$
10.40
Medical supplies
1,200
5.80
Occupancy expenses
7,600
1.90
Administrative expenses
5,900
0.30
Total expenses
$
44,200
$
18.40
-
Actual results for November:
Revenue
$
116,656
Personnel expenses
$
63,686
Medical supplies
$
21,072
Occupancy expenses
$
13,371
Administrative expenses
$
6,677
The activity variance for personnel expenses in November would be closest to:
A) $104 F
B) $104 U
C) $134 F
D) $134 U
183
208) Tennies Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 3,300 client-visits, but its actual level of activity was 3,290 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for November:
Data used in budgeting:
Fixed element
per month
Variable element
per client-visit
Revenue
-
$
35.40
Personnel expenses
$
29,500
$
10.40
Medical supplies
1,200
5.80
Occupancy expenses
7,600
1.90
Administrative expenses
5,900
0.30
Total expenses
$
44,200
$
18.40
Actual results for November:
Revenue
$
116,656
Personnel expenses
$
63,686
Medical supplies
$
21,072
Occupancy expenses
$
13,371
Administrative expenses
$
6,677
The spending variance for medical supplies in November would be closest to:
A) $790 F
B) $790 U
C) $732 U
D) $732 F
209) Rhed 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 3,700 tenant-
days, but its actual level of activity was 3,650 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
-
$
33.90
Wages and salaries
$
2,200
$
7.70
Food and supplies
1,400
12.90
Facility expenses
8,200
4.40
Administrative expenses
6,200
0.40
Total expenses
$
18,000
$
25.40
Actual results for December:
Revenue
$
122,235
Wages and salaries
$
30,575
Food and supplies
$
47,455
Facility expenses
$
24,360
Administrative expenses
$
7,460
The wages and salaries in the planning budget for December would be closest to:
A) $30,575
B) $30,994
C) $30,305
D) $30,690
210) Rhed 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 3,700 tenant-
days, but its actual level of activity was 3,650 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
-
$
33.90
Wages and salaries
$
2,200
$
7.70
Food and supplies
1,400
12.90
Facility expenses
8,200
4.40
Administrative expenses
6,200
0.40
Total expenses
$
18,000
$
25.40
Actual results for December:
Revenue
$
122,235
Wages and salaries
$
30,575
Food and supplies
$
47,455
Facility expenses
$
24,360
Administrative expenses
$
7,460
The facility expenses in the flexible budget for December would be closest to:
A) $24,694
B) $24,031
C) $24,260
D) $24,480
187
211) Rhed 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 3,700 tenant-
days, but its actual level of activity was 3,650 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
-
$
33.90
Wages and salaries
$
2,200
$
7.70
Food and supplies
1,400
12.90
Facility expenses
8,200
4.40
Administrative expenses
6,200
0.40
Total expenses
$
18,000
$
25.40
Actual results for December:
Revenue
$
122,235
Wages and salaries
$
30,575
Food and supplies
$
47,455
Facility expenses
$
24,360
Administrative expenses
$
7,460
-
The activity variance for administrative expenses in December would be closest to:
A) $20 U
B) $220 U
C) $20 F
D) $220 F
189
212) Rhed 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 3,700 tenant-
days, but its actual level of activity was 3,650 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
-
$
33.90
Wages and salaries
$
2,200
$
7.70
Food and supplies
1,400
12.90
Facility expenses
8,200
4.40
Administrative expenses
6,200
0.40
Total expenses
$
18,000
$
25.40
Actual results for December:
Revenue
$
122,235
Wages and salaries
$
30,575
Food and supplies
$
47,455
Facility expenses
$
24,360
Administrative expenses
$
7,460
The spending variance for facility expenses in December would be closest to:
A) $120 U
B) $100 F
C) $120 F
D) $100 U
213) Harold Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During March, the company
budgeted for 7,900 units, but its actual level of activity was 7,860 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for March:
Data used in budgeting:
Fixed element
per month
Variable element
per unit
Revenue
-
$
39.80
Direct labor
$
0
$
7.70
Direct materials
0
18.00
Manufacturing overhead
38,200
1.50
Selling and administrative expenses
27,400
0.50
Total expenses
$
65,600
$
27.70
Actual results for March:
Revenue
$
297,318
Direct labor
$
59,962
Direct materials
$
135,850
Manufacturing overhead
$
51,370
Selling and administrative expenses
$
31,950
The selling and administrative expenses in the planning budget for March would be closest to:
A) $31,330
B) $31,350
C) $31,950
D) $32,113
214) Harold Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During March, the company
budgeted for 7,900 units, but its actual level of activity was 7,860 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for March:
Data used in budgeting:
Fixed element
per month
Variable element
per unit
Revenue
-
$
39.80
Direct labor
$
0
$
7.70
Direct materials
0
18.00
Manufacturing overhead
38,200
1.50
Selling and administrative expenses
27,400
0.50
Total expenses
$
65,600
$
27.70
Actual results for March:
Revenue
$
297,318
Direct labor
$
59,962
Direct materials
$
135,850
Manufacturing overhead
$
51,370
Selling and administrative expenses
$
31,950
The manufacturing overhead in the flexible budget for March would be closest to:
A) $51,110
B) $51,631
C) $49,990
D) $50,050
193
215) Harold Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During March, the company
budgeted for 7,900 units, but its actual level of activity was 7,860 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for March:
Data used in budgeting:
Fixed element
per month
Variable element
per unit
Revenue
-
$
39.80
Direct labor
$
0
$
7.70
Direct materials
0
18.00
Manufacturing overhead
38,200
1.50
Selling and administrative expenses
27,400
0.50
Total expenses
$
65,600
$
27.70
Actual results for March:
Revenue
$
297,318
Direct labor
$
59,962
Direct materials
$
135,850
Manufacturing overhead
$
51,370
Selling and administrative expenses
$
31,950
The activity variance for selling and administrative expenses in March would be closest to:
A) $600 F
B) $20 U
C) $600 U
D) $20 F
195
216) Harold Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During March, the company
budgeted for 7,900 units, but its actual level of activity was 7,860 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for March:
Data used in budgeting:
Fixed element
per month
Variable element
per unit
Revenue
-
$
39.80
Direct labor
$
0
$
7.70
Direct materials
0
18.00
Manufacturing overhead
38,200
1.50
Selling and administrative expenses
27,400
0.50
Total expenses
$
65,600
$
27.70
-
Actual results for March:
Revenue
$
297,318
Direct labor
$
59,962
Direct materials
$
135,850
Manufacturing overhead
$
51,370
Selling and administrative expenses
$
31,950
-
The spending variance for direct materials in March would be closest to:
A) $5,630 F
B) $6,350 F
C) $5,630 U
D) $6,350 U
Piechocki Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During May, the company budgeted
for 5,900 units, but its actual level of activity was 5,940 units. The company has provided the
following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Fixed element
per month
Variable element
per unit
Revenue
-
$
32.60
Direct labor
$
0
$
3.90
Direct materials
0
12.10
Manufacturing overhead
33,400
1.80
Selling and administrative expenses
28,300
0.40
Total expenses
$
61,700
$
18.20
Actual results for May:
Revenue
$
200,564
Direct labor
$
22,786
Direct materials
$
73,824
Manufacturing overhead
$
43,922
Selling and administrative expenses
$
31,896
217) The direct labor in the planning budget for May would be closest to:
A) $22,786
B) $23,010
C) $22,633
D) $23,166
218) The direct materials in the flexible budget for May would be closest to:
A) $73,327
B) $71,874
C) $71,390
D) $74,325
219) The activity variance for direct labor in May would be closest to:
A) $156 U
B) $156 F
C) $224 F
D) $224 U
220) The revenue variance for May would be closest to:
A) $6,920 F
B) $6,920 U
C) $8,224 U
D) $8,224 F
221) The spending variance for direct materials in May would be closest to:
A) $2,434 U
B) $1,950 U
C) $2,434 F
D) $1,950 F
