Accounting Chapter 9 10 Rhed Kennel uses tenant-days as its measure of activity;

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