275) 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 net operating income in March would be closest to:
A) $393 U
B) $2,963 U
C) $2,963 F
D) $393 F
Total variable expense per unit
Contribution margin per unit
$
Total fixed expense
–
23,677
24,070
Activity variance
276) Feemster Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During October, the company
budgeted for 5,900 units, but its actual level of activity was 5,850 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for October:
Data used in budgeting:
Fixed element
per month
Variable element
per unit
Revenue
–
$
29.90
Direct labor
$
0
$
5.60
Direct materials
0
8.60
Manufacturing overhead
37,000
1.30
Selling and administrative expenses
27,200
0.80
Total expenses
$
64,200
$
16.30
Actual results for October:
Revenue
$
176,095
Direct labor
$
31,510
Direct materials
$
49,800
Manufacturing overhead
$
45,775
Selling and administrative expenses
$
31,670
The activity variance for direct labor in October would be closest to:
A) $280 U
B) $280 F
C) $1,530 U
D) $1,530 F
Flexible budget [$0 + ($5.60 × 5,850)]
$
32,760
Planning budget [$0 + ($5.60 × 5,900)]
33,040
Activity variance
$
277) Feemster Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During October, the company
budgeted for 5,900 units, but its actual level of activity was 5,850 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for October:
Data used in budgeting:
Fixed element
per month
Variable element
per unit
Revenue
–
$
29.90
Direct labor
$
0
$
5.60
Direct materials
0
8.60
Manufacturing overhead
37,000
1.30
Selling and administrative expenses
27,200
0.80
Total expenses
$
64,200
$
16.30
Actual results for October:
Revenue
$
176,095
Direct labor
$
31,510
Direct materials
$
49,800
Manufacturing overhead
$
45,775
Selling and administrative expenses
$
31,670
The activity variance for selling and administrative expenses in October would be closest to:
A) $250 F
B) $40 U
C) $250 U
D) $40 F
Flexible budget [$27,200 + ($0.80 × 5,850)]
$
31,880
Planning budget [$27,200 + ($0.80 × 5,900)]
31,920
Activity variance
$
40
264
278) Feemster Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During October, the company
budgeted for 5,900 units, but its actual level of activity was 5,850 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual results
for October:
Data used in budgeting:
Fixed element
per month
Variable element
per unit
Revenue
–
$
29.90
Direct labor
$
0
$
5.60
Direct materials
0
8.60
Manufacturing overhead
37,000
1.30
Selling and administrative expenses
27,200
0.80
Total expenses
$
64,200
$
16.30
Actual results for October:
Revenue
$
176,095
Direct labor
$
31,510
Direct materials
$
49,800
Manufacturing overhead
$
45,775
Selling and administrative expenses
$
31,670
The activity variance for net operating income in October would be closest to:
A) $680 U
B) $680 F
C) $1,300 F
D) $1,300 U
279) Kaina Clinic uses client-visits as its measure of activity. During May, the clinic budgeted
for 3,000 client-visits, but its actual level of activity was 2,970 client-visits. The clinic 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 client-visit
Revenue
–
$
25.80
Personnel expenses
$
20,200
$
7.10
Medical supplies
900
4.60
Occupancy expenses
5,500
0.70
Administrative expenses
3,500
0.20
Total expenses
$
30,100
$
12.60
Actual results for May:
Revenue
$
78,246
Personnel expenses
$
42,647
Medical supplies
$
15,002
Occupancy expenses
$
7,289
Administrative expenses
$
4,294
The activity variance for personnel expenses in May would be closest to:
A) $213 U
B) $213 F
C) $1,147 U
D) $1,147 F
Flexible budget [$20,200 + ($7.10 × 2,970)]
$
41,287
Planning budget [$20,200 + ($7.10 × 3,000)]
41,500
Activity variance
$
213
280) Kaina Clinic uses client-visits as its measure of activity. During May, the clinic budgeted
for 3,000 client-visits, but its actual level of activity was 2,970 client-visits. The clinic 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 client-visit
Revenue
–
$
25.80
Personnel expenses
$
20,200
$
7.10
Medical supplies
900
4.60
Occupancy expenses
5,500
0.70
Administrative expenses
3,500
0.20
Total expenses
$
30,100
$
12.60
Actual results for May:
Revenue
$
78,246
Personnel expenses
$
42,647
Medical supplies
$
15,002
Occupancy expenses
$
7,289
Administrative expenses
$
4,294
The activity variance for administrative expenses in May would be closest to:
A) $6 U
B) $6 F
C) $194 U
D) $194 F
Flexible budget [$3,500 + ($0.20 × 2,970)]
$
4,094
Planning budget [$3,500 + ($0.20 × 3,000)]
4,100
Activity variance
$
268
281) Kaina Clinic uses client-visits as its measure of activity. During May, the clinic budgeted
for 3,000 client-visits, but its actual level of activity was 2,970 client-visits. The clinic 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 client-visit
Revenue
–
$
25.80
Personnel expenses
$
20,200
$
7.10
Medical supplies
900
4.60
Occupancy expenses
5,500
0.70
Administrative expenses
3,500
0.20
Total expenses
$
30,100
$
12.60
Actual results for May:
Revenue
$
78,246
Personnel expenses
$
42,647
Medical supplies
$
15,002
Occupancy expenses
$
7,289
Administrative expenses
$
4,294
The activity variance for net operating income in May would be closest to:
A) $396 F
B) $396 U
C) $486 F
D) $486 U
Korsak Corporation is a service company that measures its output by the number of customers
served. The company has provided the following fixed and variable cost estimates that it uses for
budgeting purposes.
Fixed Element per
Month
Variable
Element per
Customer Served
Revenue
$
5,500
Employee salaries and wages
$
43,700
$
1,100
Travel expenses
$
500
Other expenses
$
43,200
The planning budget for October was based on serving 23 customers, but a total of 19 customers
were actually served during October.
282) The activity variance for revenue for October would have been closest to:
A) $22,000 U
B) $20,400 U
C) $22,000 F
D) $20,400 F
Customers served (q)
Revenue ($5,500q)
104,500
$
126,500
22,000
U
–
283) The activity variance for “Employee salaries and wages” for October would have been
closest to:
A) $4,800 U
B) $4,800 F
C) $4,400 U
D) $4,400 F
284) The activity variance for “Travel expenses” for October would have been closest to:
A) $2,300 F
B) $2,300 U
C) $2,000 U
D) $2,000 F
285) The activity variance for “Other expenses” for October would have been closest to:
A) $8,126.32 U
B) $800 U
C) $800 F
D) $0
273
286) The activity variance for total expenses for October would have been closest to:
A) $6,400 F
B) $6,400 U
C) $7,900 U
D) $7,900 F
287) The activity variance for net operating income for October would have been closest to:
A) $15,600 U
B) $12,500 F
C) $15,600 F
D) $12,500 U
288) Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 2,000 client-visits, but its actual level of activity was 2,010 client-visits. The clinic has
provided the following data concerning the formulas to be used in its budgeting:
Fixed element
per month
Variable element
per client-visit
Revenue
–
$
43.70
Personnel expenses
$
26,100
$
12.10
Medical supplies
1,000
6.30
Occupancy expenses
6,800
1.60
Administrative expenses
3,000
0.20
Total expenses
$
36,900
$
20.20
–
The activity variance for personnel expenses in July would be closest to:
A) $901 F
B) $901 U
C) $121 F
D) $121 U
Planning budget [$26,100 + ($12.10 × 2,000)]
50,300
Activity variance
–
289) Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 2,000 client-visits, but its actual level of activity was 2,010 client-visits. The clinic has
provided the following data concerning the formulas to be used in its budgeting:
Fixed element
per month
Variable element
per client-visit
Revenue
–
$
43.70
Personnel expenses
$
26,100
$
12.10
Medical supplies
1,000
6.30
Occupancy expenses
6,800
1.60
Administrative expenses
3,000
0.20
Total expenses
$
36,900
$
20.20
–
The activity variance for administrative expenses in July would be closest to:
A) $2 U
B) $162 F
C) $2 F
D) $162 U
Planning budget [$3,000 + ($0.20 × 2,000)]
3,400
Activity variance
–
290) Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 2,000 client-visits, but its actual level of activity was 2,010 client-visits. The clinic has
provided the following data concerning the formulas to be used in its budgeting:
Fixed element
per month
Variable element
per client-visit
Revenue
–
$
43.70
Personnel expenses
$
26,100
$
12.10
Medical supplies
1,000
6.30
Occupancy expenses
6,800
1.60
Administrative expenses
3,000
0.20
Total expenses
$
36,900
$
20.20
The activity variance for net operating income in July would be closest to:
A) $235 F
B) $235 U
C) $2,825 F
D) $2,825 U
Revenue per client-visit
Contribution margin per client-visit
$
Total fixed expense
–
10,335
10,100
Activity variance
–
291) Neighbors 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 3,000
tenant-days, but its actual level of activity was 2,960 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
–
$
27.30
Wages and salaries
$
2,900
$
5.70
Food and supplies
400
8.30
Facility expenses
9,500
3.80
Administrative expenses
6,700
0.40
Total expenses
$
19,700
$
18.20
Actual results for April:
Revenue
$
82,088
Wages and salaries
$
20,112
Food and supplies
$
24,418
Facility expenses
$
21,538
Administrative expenses
$
8,094
The activity variance for wages and salaries in April would be closest to:
A) $228 F
B) $112 F
C) $228 U
D) $112 U
Flexible budget [$2,900 + ($5.70 × 2,960)]
$
19,772
Planning budget [$2,900 + ($5.70 × 3,000)]
20,000
Activity variance
$
228
292) Neighbors 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 3,000
tenant-days, but its actual level of activity was 2,960 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
–
$
27.30
Wages and salaries
$
2,900
$
5.70
Food and supplies
400
8.30
Facility expenses
9,500
3.80
Administrative expenses
6,700
0.40
Total expenses
$
19,700
$
18.20
Actual results for April:
Revenue
$
82,088
Wages and salaries
$
20,112
Food and supplies
$
24,418
Facility expenses
$
21,538
Administrative expenses
$
8,094
The activity variance for administrative expenses in April would be closest to:
A) $194 U
B) $16 U
C) $16 F
D) $194 F
Flexible budget [$6,700 + ($0.40 × 2,960)]
$
7,884
Planning budget [$6,700 + ($0.40 × 3,000)]
7,900
Activity variance
$
16
280
293) Neighbors 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 3,000
tenant-days, but its actual level of activity was 2,960 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
–
$
27.30
Wages and salaries
$
2,900
$
5.70
Food and supplies
400
8.30
Facility expenses
9,500
3.80
Administrative expenses
6,700
0.40
Total expenses
$
19,500
$
18.20
Actual results for April:
Revenue
$
82,088
Wages and salaries
$
20,112
Food and supplies
$
24,418
Facility expenses
$
21,538
Administrative expenses
$
8,094
The activity variance for net operating income in April would be closest to:
A) $126 F
B) $126 U
C) $364 F
D) $364 U