222
238) Trevorrow Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During June, the company
budgeted for 6,200 units, but its actual level of activity was 6,160 units. The company 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
Revenue
–
$
27.80
Direct labor
$
0
$
3.10
Direct materials
0
10.20
Manufacturing overhead
37,200
1.10
Selling and administrative expenses
22,800
0.30
Total expenses
$
60,000
$
14.70
–
Actual results for June:
Revenue
$
178,318
Direct labor
$
18,606
Direct materials
$
60,652
Manufacturing overhead
$
43,896
Selling and administrative expenses
$
24,688
–
The overall revenue and spending variance (i.e., the variance for net operating income in the
revenue and spending variance column on the flexible budget performance report) for June
would be closest to:
A) $9,256 U
B) $9,256 F
C) $9,780 U
D) $9,780 F
239) Guareno Clinic uses client-visits as its measure of activity. During December, the clinic
budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic
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
Revenue
–
$
45.20
Personnel expenses
$
34,300
$
13.30
Medical supplies
1,600
5.40
Occupancy expenses
10,000
1.80
Administrative expenses
3,800
0.20
Total expenses
$
49,700
$
20.70
Actual results for December:
Revenue
$
108,650
Personnel expenses
$
65,755
Medical supplies
$
14,380
Occupancy expenses
$
14,000
Administrative expenses
$
4,210
The administrative expenses in the planning budget for December would be closest to:
A) $4,210
B) $4,290
C) $4,300
D) $4,296
240) Guareno Clinic uses client-visits as its measure of activity. During December, the clinic
budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic
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
Revenue
–
$
45.20
Personnel expenses
$
34,300
$
13.30
Medical supplies
1,600
5.40
Occupancy expenses
10,000
1.80
Administrative expenses
3,800
0.20
Total expenses
$
49,700
$
20.70
Actual results for December:
Revenue
$
108,650
Personnel expenses
$
65,755
Medical supplies
$
14,380
Occupancy expenses
$
14,000
Administrative expenses
$
4,210
The occupancy expenses in the flexible budget for December would be closest to:
A) $13,720
B) $14,410
C) $14,500
D) $14,286
241) Guareno Clinic uses client-visits as its measure of activity. During December, the clinic
budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic
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
Revenue
–
$
45.20
Personnel expenses
$
34,300
$
13.30
Medical supplies
1,600
5.40
Occupancy expenses
10,000
1.80
Administrative expenses
3,800
0.20
Total expenses
$
49,700
$
20.70
Actual results for December:
Revenue
$
108,650
Personnel expenses
$
65,755
Medical supplies
$
14,380
Occupancy expenses
$
14,000
Administrative expenses
$
4,210
The activity variance for administrative expenses in December would be closest to:
A) $10 U
B) $90 F
C) $90 U
D) $10 F
Flexible budget [$3,800 + ($0.20 × 2,450)]
$
4,290
Planning budget [$3,800 + ($0.20 × 2,500)]
4,300
Activity variance
$
242) Guareno Clinic uses client-visits as its measure of activity. During December, the clinic
budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic
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
Revenue
–
$
45.20
Personnel expenses
$
34,300
$
13.30
Medical supplies
1,600
5.40
Occupancy expenses
10,000
1.80
Administrative expenses
3,800
0.20
Total expenses
$
49,700
$
20.70
Actual results for December:
Revenue
$
108,650
Personnel expenses
$
65,755
Medical supplies
$
14,380
Occupancy expenses
$
14,000
Administrative expenses
$
4,210
The spending variance for medical supplies in December would be closest to:
A) $720 F
B) $450 U
C) $720 U
D) $450 F
Actual results
$
14,380
Flexible budget [$1,600 + ($5.40 × 2,450)]
14,830
Spending variance
$
243) Keisker Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,190 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
Revenue
–
$
54.10
Personnel expenses
$
29,200
$
17.50
Medical supplies
700
8.70
Occupancy expenses
7,100
2.00
Administrative expenses
4,800
0.10
Total expenses
$
41,800
$
28.30
Actual results for November:
Revenue
$
120,989
Personnel expenses
$
66,265
Medical supplies
$
19,223
Occupancy expenses
$
10,970
Administrative expenses
$
5,059
The personnel expenses in the planning budget for November would be closest to:
A) $67,700
B) $66,568
C) $66,265
D) $67,525
244) Keisker Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,190 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
Revenue
–
$
54.10
Personnel expenses
$
29,200
$
17.50
Medical supplies
700
8.70
Occupancy expenses
7,100
2.00
Administrative expenses
4,800
0.10
Total expenses
$
41,800
$
28.30
Actual results for November:
Revenue
$
120,989
Personnel expenses
$
66,265
Medical supplies
$
19,223
Occupancy expenses
$
10,970
Administrative expenses
$
5,059
The occupancy expenses in the flexible budget for November would be closest to:
A) $11,500
B) $10,920
C) $11,020
D) $11,480
245) Keisker Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,190 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
Revenue
–
$
54.10
Personnel expenses
$
29,200
$
17.50
Medical supplies
700
8.70
Occupancy expenses
7,100
2.00
Administrative expenses
4,800
0.10
Total expenses
$
41,800
$
28.30
Actual results for November:
Revenue
$
120,989
Personnel expenses
$
66,265
Medical supplies
$
19,223
Occupancy expenses
$
10,970
Administrative expenses
$
5,059
The activity variance for administrative expenses in November would be closest to:
A) $1 F
B) $39 F
C) $39 U
D) $1 U
Flexible budget [$4,800 + ($0.10 × 2,190)]
$
5,019
Planning budget [$4,800 + ($0.10 × 2,200)]
5,020
Activity variance
$
1
246) Keisker Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,190 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
Revenue
–
$
54.10
Personnel expenses
$
29,200
$
17.50
Medical supplies
700
8.70
Occupancy expenses
7,100
2.00
Administrative expenses
4,800
0.10
Total expenses
$
41,800
$
28.30
Actual results for November:
Revenue
$
120,989
Personnel expenses
$
66,265
Medical supplies
$
19,223
Occupancy expenses
$
10,970
Administrative expenses
$
5,059
The spending variance for occupancy expenses in November would be closest to:
A) $530 U
B) $510 F
C) $510 U
D) $530 F
Actual results
$
10,970
Flexible budget [$7,100 + ($2 × 2,190)]
11,480
Spending variance
$
510
247) Manter Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During June, the company budgeted
for 6,900 units, but its actual level of activity was 6,940 units. The company 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
Revenue
–
$
32.10
Direct labor
$
0
$
5.00
Direct materials
0
13.60
Manufacturing overhead
31,500
1.20
Selling and administrative expenses
23,700
0.70
Total expenses
$
55,200
$
20.50
Actual results for June:
Revenue
$
219,604
Direct labor
$
34,990
Direct materials
$
94,364
Manufacturing overhead
$
39,668
Selling and administrative expenses
$
29,888
The selling and administrative expenses in the planning budget for June would be closest to:
A) $29,716
B) $28,530
C) $29,888
D) $28,558
248) Manter Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During June, the company budgeted
for 6,900 units, but its actual level of activity was 6,940 units. The company 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
Revenue
–
$
32.10
Direct labor
$
0
$
5.00
Direct materials
0
13.60
Manufacturing overhead
31,500
1.20
Selling and administrative expenses
23,700
0.70
Total expenses
$
55,200
$
20.50
Actual results for June:
Revenue
$
219,604
Direct labor
$
34,990
Direct materials
$
94,364
Manufacturing overhead
$
39,668
Selling and administrative expenses
$
29,888
–
The direct materials in the flexible budget for June would be closest to:
A) $94,384
B) $93,840
C) $93,820
D) $94,911
249) Manter Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During June, the company budgeted
for 6,900 units, but its actual level of activity was 6,940 units. The company 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
Revenue
–
$
32.10
Direct labor
$
0
$
5.00
Direct materials
0
13.60
Manufacturing overhead
31,500
1.20
Selling and administrative expenses
23,700
0.70
Total expenses
$
55,200
$
20.50
Actual results for June:
Revenue
$
219,604
Direct labor
$
34,990
Direct materials
$
94,364
Manufacturing overhead
$
39,668
Selling and administrative expenses
$
29,888
The activity variance for direct labor in June would be closest to:
A) $200 U
B) $200 F
C) $490 U
D) $490 F
Flexible budget [$0 + ($5 × 6,940)]
$
34,700
Planning budget [$0 + ($5 × 6,900)]
34,500
Activity variance
$
250) Manter Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During June, the company budgeted
for 6,900 units, but its actual level of activity was 6,940 units. The company 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
Revenue
–
$
32.10
Direct labor
$
0
$
5.00
Direct materials
0
13.60
Manufacturing overhead
31,500
1.20
Selling and administrative expenses
23,700
0.70
Total expenses
$
55,200
$
20.50
Actual results for June:
Revenue
$
219,604
Direct labor
$
34,990
Direct materials
$
94,364
Manufacturing overhead
$
39,668
Selling and administrative expenses
$
29,888
The spending variance for direct materials in June would be closest to:
A) $524 F
B) $20 F
C) $20 U
D) $524 U
Actual results
$
94,364
Flexible budget [$0 + ($13.60 × 6,940)]
94,384
Spending variance
$
20
251) Neeb 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 7,040 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for January:
Data used in budgeting:
Fixed element
per month
Revenue
–
$
27.20
Direct labor
$
0
$
3.20
Direct materials
0
9.70
Manufacturing overhead
44,300
1.10
Selling and administrative expenses
27,000
0.40
Total expenses
$
71,300
$
14.40
Actual results for January:
Revenue
$
183,448
Direct labor
$
23,178
Direct materials
$
68,808
Manufacturing overhead
$
49,784
Selling and administrative expenses
$
30,246
The direct labor in the planning budget for January would be closest to:
A) $22,400
B) $23,178
C) $22,528
D) $23,046
252) Neeb 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 7,040 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for January:
Data used in budgeting:
Fixed element
per month
Revenue
–
$
27.20
Direct labor
$
0
$
3.20
Direct materials
0
9.70
Manufacturing overhead
44,300
1.10
Selling and administrative expenses
27,000
0.40
Total expenses
$
71,300
$
14.40
Actual results for January:
Revenue
$
183,448
Direct labor
$
23,178
Direct materials
$
68,808
Manufacturing overhead
$
49,784
Selling and administrative expenses
$
30,246
The manufacturing overhead in the flexible budget for January would be closest to:
A) $49,501
B) $52,000
C) $52,044
D) $50,068
253) Neeb 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 7,040 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for January:
Data used in budgeting:
Fixed element
per month
Revenue
–
$
27.20
Direct labor
$
0
$
3.20
Direct materials
0
9.70
Manufacturing overhead
44,300
1.10
Selling and administrative expenses
27,000
0.40
Total expenses
$
71,300
$
14.40
Actual results for January:
Revenue
$
183,448
Direct labor
$
23,178
Direct materials
$
68,808
Manufacturing overhead
$
49,784
Selling and administrative expenses
$
30,246
The activity variance for selling and administrative expenses in January would be closest to:
A) $446 U
B) $16 U
C) $446 F
D) $16 F
Flexible budget [$27,000 + ($0.40 × 7,040)]
$
29,816
Planning budget [$27,000 + ($0.40 × 7,000)]
29,800
Activity variance
$
16
239
254) Neeb 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 7,040 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for January:
Data used in budgeting:
Fixed element
per month
Revenue
–
$
27.20
Direct labor
$
0
$
3.20
Direct materials
0
9.70
Manufacturing overhead
44,300
1.10
Selling and administrative expenses
27,000
0.40
Total expenses
$
71,300
$
14.40
–
Actual results for January:
Revenue
$
183,448
Direct labor
$
23,178
Direct materials
$
68,808
Manufacturing overhead
$
49,784
Selling and administrative expenses
$
30,246
–
The spending variance for manufacturing overhead in January would be closest to:
A) $2,216 U
B) $2,260 F
C) $2,260 U
D) $2,216 F