331) Dinham 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 March, the kennel budgeted for 2,000 tenant-
days, but its actual level of activity was 2,040 tenant-days. The kennel 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 tenant-day
Revenue
–
$
35.40
Wages and salaries
$
3,000
$
6.60
Food and supplies
400
12.20
Facility expenses
9,600
2.30
Administrative expenses
7,800
0.20
Total expenses
$
20,800
$
21.30
Actual results for March:
$
69,576
$
16,204
$
25,008
$
14,122
$
8,238
The revenue variance for March would be closest to:
A) $2,640 U
B) $2,640 F
C) $1,224 U
D) $1,224 F
Actual results
$
Flexible budget ($35.40 × 2,040)
Revenue variance
$
332) Dinham 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 March, the kennel budgeted for 2,000 tenant-
days, but its actual level of activity was 2,040 tenant-days. The kennel 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 tenant-day
Revenue
–
$
35.40
Wages and salaries
$
3,000
$
6.60
Food and supplies
400
12.20
Facility expenses
9,600
2.30
Administrative expenses
7,800
0.20
Total expenses
$
20,800
$
21.30
Actual results for March:
$
69,576
$
16,204
$
25,008
$
14,122
$
8,238
The spending variance for food and supplies in March would be closest to:
A) $208 F
B) $280 U
C) $208 U
D) $280 F
Actual results
$
Flexible budget [$400 + ($12.20 × 2,040)]
Spending variance
$
333) Dinham 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 March, the kennel budgeted for 2,000 tenant-
days, but its actual level of activity was 2,040 tenant-days. The kennel 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 tenant-day
Revenue
$
35.40
Wages and salaries
$
3,000
$
6.60
Food and supplies
400
12.20
Facility expenses
9,600
2.30
Administrative expenses
7,800
0.20
Total expenses
$
20,800
$
21.30
Actual results for March:
$
69,576
$
16,204
$
25,008
$
14,122
$
8,238
The spending variance for facility expenses in March would be closest to:
A) $78 F
B) $170 U
C) $78 U
D) $170 F
Actual results
$
Flexible budget [$9,600 + ($2.30 × 2,040)]
$
Spending variance
$
324
334) Dinham 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 March, the kennel budgeted for 2,000 tenant-
days, but its actual level of activity was 2,040 tenant-days. The kennel 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 tenant-day
Revenue
$
35.40
Wages and salaries
$
3,000
$
6.60
Food and supplies
400
12.20
Facility expenses
9,600
2.30
Administrative expenses
7,800
0.20
Total expenses
$
20,800
$
21.30
Actual results for March:
$
69,576
$
16,204
$
25,008
$
14,122
$
8,238
–
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 March
would be closest to:
A) $1,960 F
B) $1,960 U
C) $1,396 U
D) $1,396 F
335) Bracken Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 2,100 client-visits, but its actual level of activity was 2,140 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for September:
Data used in budgeting:
Fixed element
per month
Variable element
per client-visit
Revenue
$
44.50
Personnel expenses
$
26,100
$
12.60
Medical supplies
600
7.20
Occupancy expenses
6,500
2.40
Administrative expenses
3,100
0.10
Total expenses
$
36,300
$
22.30
Actual results for September:
$
93,240
$
50,754
$
15,328
$
11,646
$
3,394
The revenue variance for September would be closest to:
A) $210 U
B) $1,990 F
C) $1,990 U
D) $210 F
Actual results
$
Flexible budget ($44.50 × 2,140)
$
Revenue variance
$
336) Bracken Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 2,100 client-visits, but its actual level of activity was 2,140 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for September:
Data used in budgeting:
Fixed element
per month
Variable element
per client-visit
Revenue
$
44.50
Personnel expenses
$
26,100
$
12.60
Medical supplies
600
7.20
Occupancy expenses
6,500
2.40
Administrative expenses
3,100
0.10
Total expenses
$
36,300
$
22.30
Actual results for September:
$
93,240
$
50,754
$
15,328
$
11,646
$
3,394
The spending variance for medical supplies in September would be closest to:
A) $392 F
B) $680 U
C) $680 F
D) $392 U
Actual results
$
Flexible budget [$600 + ($7.20 × 2,140)]
$
Spending variance
$
337) Bracken Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 2,100 client-visits, but its actual level of activity was 2,140 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for September:
Data used in budgeting:
Fixed element
per month
Variable element
per client-visit
Revenue
$
44.50
Personnel expenses
$
26,100
$
12.60
Medical supplies
600
7.20
Occupancy expenses
6,500
2.40
Administrative expenses
3,100
0.10
Total expenses
$
36,300
$
22.30
Actual results for September:
$
93,240
$
50,754
$
15,328
$
11,646
$
3,394
The spending variance for occupancy expenses in September would be closest to:
A) $10 F
B) $106 F
C) $10 U
D) $106 U
Actual results
$
Flexible budget [$6,500 + ($2.40 × 2,140)]
$
Spending variance
$
329
338) Bracken Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 2,100 client-visits, but its actual level of activity was 2,140 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for September:
Data used in budgeting:
Fixed element
per month
Variable element
per client-visit
Revenue
$
44.50
Personnel expenses
$
26,100
$
12.60
Medical supplies
600
7.20
Occupancy expenses
6,500
2.40
Administrative expenses
3,100
0.10
Total expenses
$
36,300
$
22.30
Actual results for September:
$
93,240
$
50,754
$
15,328
$
11,646
$
3,394
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 September
would be closest to:
A) $1,798 U
B) $1,798 F
C) $910 U
D) $910 F
331
339) Teel Printing uses two measures of activity, press runs and book set-ups, in the cost
formulas in its budgets and performance reports. The cost formula for wages and salaries is
$8,850 per month plus $400 per press run plus $950 per book set-up. The company expected its
activity in July to be 204 press runs and 111 book set-ups, but the actual activity was 201 press
runs and 110 book set-ups. The actual cost for wages and salaries in July was $193,780.
The wages and salaries in the planning budget for July would be closest to:
A) $193,750
B) $196,672
C) $195,900
D) $193,780
332
340) Teel Printing uses two measures of activity, press runs and book set-ups, in the cost
formulas in its budgets and performance reports. The cost formula for wages and salaries is
$8,850 per month plus $400 per press run plus $950 per book set-up. The company expected its
activity in July to be 204 press runs and 111 book set-ups, but the actual activity was 201 press
runs and 110 book set-ups. The actual cost for wages and salaries in July was $193,780.
The wages and salaries in the flexible budget for July would be closest to:
A) $193,019
B) $195,900
C) $193,780
D) $193,750
341) Teel Printing uses two measures of activity, press runs and book set-ups, in the cost
formulas in its budgets and performance reports. The cost formula for wages and salaries is
$8,850 per month plus $400 per press run plus $950 per book set-up. The company expected its
activity in July to be 204 press runs and 111 book set-ups, but the actual activity was 201 press
runs and 110 book set-ups. The actual cost for wages and salaries in July was $193,780.
The activity variance for wages and salaries in July would be closest to:
A) $2,150 F
B) $2,120 F
C) $2,150 U
D) $2,120 U
342) Teel Printing uses two measures of activity, press runs and book set-ups, in the cost
formulas in its budgets and performance reports. The cost formula for wages and salaries is
$8,850 per month plus $400 per press run plus $950 per book set-up. The company expected its
activity in July to be 204 press runs and 111 book set-ups, but the actual activity was 201 press
runs and 110 book set-ups. The actual cost for wages and salaries in July was $193,780.
The spending variance for wages and salaries in July would be closest to:
A) $30 U
B) $2,120 F
C) $30 F
D) $2,120 U
343) Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in
its budgets and performance reports. The cost formula for plane operating costs is $39,590 per
month plus $2,649 per flight plus $4 per passenger. The company expected its activity in August
to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers.
The actual cost for plane operating costs in August was $255,690.
The plane operating costs in the planning budget for August would be closest to:
A) $255,690
B) $257,984
C) $265,943
D) $246,666
344) Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in
its budgets and performance reports. The cost formula for plane operating costs is $39,590 per
month plus $2,649 per flight plus $4 per passenger. The company expected its activity in August
to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers.
The actual cost for plane operating costs in August was $255,690.
The plane operating costs in the flexible budget for August would be closest to:
A) $265,943
B) $255,690
C) $267,422
D) $257,984
345) Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in
its budgets and performance reports. The cost formula for plane operating costs is $39,590 per
month plus $2,649 per flight plus $4 per passenger. The company expected its activity in August
to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers.
The actual cost for plane operating costs in August was $255,690.
The activity variance for plane operating costs in August would be closest to:
A) $2,294 F
B) $7,959 U
C) $7,959 F
D) $2,294 U
346) Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in
its budgets and performance reports. The cost formula for plane operating costs is $39,590 per
month plus $2,649 per flight plus $4 per passenger. The company expected its activity in August
to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers.
The actual cost for plane operating costs in August was $255,690.
The spending variance for plane operating costs in August would be closest to:
A) $2,294 U
B) $10,253 U
C) $2,294 F
D) $10,253 F
347) Shiigi Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for May is to be based on 3,300 meals. The diner’s director has
provided the following cost data to use in the budget: groceries, $3.80 per meal; kitchen
operations, $4,600 per month plus $1.25 per meal; administrative expenses, $3,800 per month
plus $0.40 per meal; and fundraising expenses, $1,700 per month.
Required:
Prepare the diner’s budget for the month of May. The budget will only contain the costs listed
above; no revenues will be on the budget.
348) Rivero Corporation is a shipping container refurbishment company that measures its output
by the number of containers refurbished. The company has provided the following fixed and
variable cost estimates that it uses for budgeting purposes.
Fixed Element
per Month
Variable Element per
Container Refurbished
Revenue
$5,700
Employee salaries and wages
$48,300
$900
Refurbishing materials
$700
Other expenses
$36,300
When the company prepared its planning budget at the beginning of September, it assumed that
22 containers would have been refurbished.
Required:
Prepare the company’s planning budget for September.
Containers refurbished (q)
Revenue ($5,700q)
Expenses:
Employee salaries and wages ($48,300 + $900q)
Refurbishing materials ($700q)
Other expenses ($36,300)
Total expenses
119,800
Net operating income