255) Meinke 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 April, the kennel budgeted for 3,700 tenant-
days, but its actual level of activity was 3,680 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for April:
Data used in budgeting:
Fixed element
per month
Variable element
per tenant-day
Revenue
–
$
33.80
Wages and salaries
$
3,100
$
6.40
Food and supplies
1,000
14.40
Facility expenses
9,100
3.40
Administrative expenses
6,500
0.40
Total expenses
$
19,700
$
24.60
Actual results for April:
Revenue
$
118,524
Wages and salaries
$
27,122
Food and supplies
$
51,982
Facility expenses
$
20,852
Administrative expenses
$
8,052
The administrative expenses in the planning budget for April would be closest to:
A) $7,972
B) $8,052
C) $7,980
D) $8,096
256) Meinke 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 April, the kennel budgeted for 3,700 tenant-
days, but its actual level of activity was 3,680 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for April:
Data used in budgeting:
Fixed element
per month
Variable element
per tenant-day
Revenue
–
$
33.80
Wages and salaries
$
3,100
$
6.40
Food and supplies
1,000
14.40
Facility expenses
9,100
3.40
Administrative expenses
6,500
0.40
Total expenses
$
19,700
$
24.60
Actual results for April:
Revenue
$
118,524
Wages and salaries
$
27,122
Food and supplies
$
51,982
Facility expenses
$
20,852
Administrative expenses
$
8,052
The food and supplies in the flexible budget for April would be closest to:
A) $54,280
B) $53,992
C) $52,265
D) $51,701
243
257) Meinke 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 April, the kennel budgeted for 3,700 tenant-
days, but its actual level of activity was 3,680 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for April:
Data used in budgeting:
Fixed element
per month
Variable element
per tenant-day
Revenue
–
$
33.80
Wages and salaries
$
3,100
$
6.40
Food and supplies
1,000
14.40
Facility expenses
9,100
3.40
Administrative expenses
6,500
0.40
Total expenses
$
19,700
$
24.60
Actual results for April:
Revenue
$
118,524
Wages and salaries
$
27,122
Food and supplies
$
51,982
Facility expenses
$
20,852
Administrative expenses
$
8,052
The activity variance for wages and salaries in April would be closest to:
A) $128 U
B) $342 F
C) $128 F
D) $342 U
245
258) Meinke 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 April, the kennel budgeted for 3,700 tenant-
days, but its actual level of activity was 3,680 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for April:
Data used in budgeting:
Fixed element
per month
Variable element
per tenant-day
Revenue
–
$
33.80
Wages and salaries
$
3,100
$
6.40
Food and supplies
1,000
14.40
Facility expenses
9,100
3.40
Administrative expenses
6,500
0.40
Total expenses
$
19,700
$
24.60
Actual results for April:
Revenue
$
118,524
Wages and salaries
$
27,122
Food and supplies
$
51,982
Facility expenses
$
20,852
Administrative expenses
$
8,052
The spending variance for food and supplies in April would be closest to:
A) $2,010 U
B) $2,298 F
C) $2,010 F
D) $2,298 U
259) Fager Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,250 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
–
$
68.20
Personnel expenses
$
32,300
$
21.50
Medical supplies
1,200
12.50
Occupancy expenses
9,700
3.40
Administrative expenses
5,000
0.10
Total expenses
$
48,200
$
37.50
Actual results for February:
Revenue
$
156,210
Personnel expenses
$
80,445
Medical supplies
$
30,105
Occupancy expenses
$
16,800
Administrative expenses
$
5,015
The personnel expenses in the planning budget for February would be closest to:
A) $80,675
B) $80,445
C) $79,600
D) $78,657
260) Fager Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,250 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
–
$
68.20
Personnel expenses
$
32,300
$
21.50
Medical supplies
1,200
12.50
Occupancy expenses
9,700
3.40
Administrative expenses
5,000
0.10
Total expenses
$
48,200
$
37.50
Actual results for February:
Revenue
$
156,210
Personnel expenses
$
80,445
Medical supplies
$
30,105
Occupancy expenses
$
16,800
Administrative expenses
$
5,015
The medical supplies in the flexible budget for February would be closest to:
A) $29,436
B) $30,789
C) $29,325
D) $28,700
261) Fager Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,250 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
–
$
68.20
Personnel expenses
$
32,300
$
21.50
Medical supplies
1,200
12.50
Occupancy expenses
9,700
3.40
Administrative expenses
5,000
0.10
Total expenses
$
48,200
$
37.50
Actual results for February:
Revenue
$
156,210
Personnel expenses
$
80,445
Medical supplies
$
30,105
Occupancy expenses
$
16,800
Administrative expenses
$
5,015
The activity variance for personnel expenses in February would be closest to:
A) $845 U
B) $1,075 F
C) $1,075 U
D) $845 F
Flexible budget [$32,300 + ($21.50 × 2,250)]
$
80,675
Planning budget [$32,300 + ($21.50 × 2,200)]
79,600
Activity variance
$
1,075
262) Fager Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,250 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
–
$
68.20
Personnel expenses
$
32,300
$
21.50
Medical supplies
1,200
12.50
Occupancy expenses
9,700
3.40
Administrative expenses
5,000
0.10
Total expenses
$
48,200
$
37.50
Actual results for February:
Revenue
$
156,210
Personnel expenses
$
80,445
Medical supplies
$
30,105
Occupancy expenses
$
16,800
Administrative expenses
$
5,015
The revenue variance for February would be closest to:
A) $2,760 U
B) $2,760 F
C) $6,170 U
D) $6,170 F
Actual results
$
156,210
Flexible budget ($68.20 × 2,250)
153,450
Revenue variance
$
263) Fager Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,250 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
–
$
68.20
Personnel expenses
$
32,300
$
21.50
Medical supplies
1,200
12.50
Occupancy expenses
9,700
3.40
Administrative expenses
5,000
0.10
Total expenses
$
48,200
$
37.50
Actual results for February:
Revenue
$
156,210
Personnel expenses
$
80,445
Medical supplies
$
30,105
Occupancy expenses
$
16,800
Administrative expenses
$
5,015
The spending variance for medical supplies in February would be closest to:
A) $1,405 F
B) $780 F
C) $780 U
D) $1,405 U
Actual results
$
30,105
Flexible budget [$1,200 + ($12.50 × 2,250)]
29,325
Spending variance
$
Schriever Corporation is an oil well service company that measures its output by the number of
wells serviced. The company has provided the following fixed and variable cost estimates that it
uses for budgeting purposes.
Fixed element per
month
Variable
Element per
Well Serviced
Revenue
$
4,500
Employee salaries and wages
$
57,200
$
1,100
Servicing materials
$
600
Other expenses
$
31,000
The planning budget for May was based on 36 wells serviced, but a total of 31 wells were
actually serviced in May.
264) The activity variance for revenue for May would have been closest to:
A) $22,500 F
B) $20,300 F
C) $22,500 U
D) $20,300 U
Wells serviced (q)
Revenue ($4,500q)
139,500
$
162,000
22,500
U
–
265) The activity variance for “Employee salaries and wages” for May would have been closest
to:
A) $5,500 F
B) $7,500 F
C) $5,500 U
D) $7,500 U
266) The activity variance for “Servicing materials” for May would have been closest to:
A) $2,800 U
B) $3,000 F
C) $2,800 F
D) $3,000 U
267) The activity variance for “Other expenses” for May would have been closest to:
A) $200 U
B) $0
C) $200 F
D) $4,767.74 U
268) The activity variance for total expenses for May would have been closest to:
A) $10,500 F
B) $8,500 F
C) $10,500 U
D) $8,500 U
269) The activity variance for net operating income for May would have been closest to:
A) $9,800 U
B) $9,800 F
C) $14,000 U
D) $14,000 F
270) Bernes 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 October, the kennel budgeted for 2,700 tenant-
days, but its actual level of activity was 2,720 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
–
$
30.80
Wages and salaries
$
3,300
$
6.10
Food and supplies
600
10.10
Facility expenses
8,800
3.60
Administrative expenses
7,600
0.10
Total expenses
$
20,300
$
19.90
The activity variance for wages and salaries in October would be closest to:
A) $298 U
B) $122 F
C) $298 F
D) $122 U
Flexible budget [$3,300 + ($6.10 × 2,720)]
19,892
Planning budget [$3,300 + ($6.10 × 2,700)]
19,770
Activity variance
122
–
271) Bernes 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 October, the kennel budgeted for 2,700 tenant-
days, but its actual level of activity was 2,720 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
–
$
30.80
Wages and salaries
$
3,300
$
6.10
Food and supplies
600
10.10
Facility expenses
8,800
3.60
Administrative expenses
7,600
0.10
Total expenses
$
20,300
$
19.90
The activity variance for administrative expenses in October would be closest to:
A) $2 F
B) $162 F
C) $162 U
D) $2 U
Flexible budget [$7,600 + ($0.10 × 2,720)]
7,872
Planning budget [$7,600 + ($0.10 × 2,700)]
7,870
Activity variance
–
272) Bernes 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 October, the kennel budgeted for 2,700 tenant-
days, but its actual level of activity was 2,720 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
–
$
30.80
Wages and salaries
$
3,300
$
6.10
Food and supplies
600
10.10
Facility expenses
8,800
3.60
Administrative expenses
7,600
0.10
Total expenses
$
20,300
$
19.90
The activity variance for net operating income in October would be closest to:
A) $2,328 F
B) $218 U
C) $218 F
D) $2,328 U
Total variable expense per tenant-day
Contribution margin per tenant-day
$
Total fixed expense
–
9,348
9,130
218
273) Rogstad 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 6,700 units, but its actual level of activity was 6,670 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
–
$
34.00
Direct labor
$
0
$
7.20
Direct materials
0
12.00
Manufacturing overhead
40,500
1.30
Selling and administrative expenses
23,200
0.40
Total expenses
$
63,700
$
20.90
The activity variance for direct labor in March would be closest to:
A) $2,406 U
B) $216 U
C) $216 F
D) $2,406 F
Planning budget [$0 + ($7.20 × 6,700)]
48,240
Activity variance
–
274) Rogstad 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 6,700 units, but its actual level of activity was 6,670 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
–
$
34.00
Direct labor
$
0
$
7.20
Direct materials
0
12.00
Manufacturing overhead
40,500
1.30
Selling and administrative expenses
23,200
0.40
Total expenses
$
63,700
$
20.90
The activity variance for selling and administrative expenses in March would be closest to:
A) $12 U
B) $12 F
C) $38 U
D) $38 F
Flexible budget [$23,200 + ($0.40 × 6,670)]
25,868
Planning budget [$23,200 + ($0.40 × 6,700)]
25,880
Activity variance
–