349) Mansour Memorial Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for February was based on 3,000 meals, but the diner actually
served 3,400 meals. The diner’s director has provided the following cost formulas to use in
budgets:
Fixed element per
month
Variable element
per meal
Groceries
$
0
$
2.20
Kitchen operations
$
4,100
$
1.90
Administrative expenses
$
3,600
$
0.60
Fundraising expenses
$
1,100
$
0.00
–
Required:
Prepare the diner’s flexible budget for the actual number of meals served in February. The budget
will only contain the costs listed above; no revenues will be on the budget.
Actual meals (q)
Groceries ($2.20q)
$
Kitchen operations ($4,100 + $1.90q)
Administrative expenses ($3,600 + $0.60q)
Fundraising expenses ($1,100)
Total expense
$
–
350) Willow Clinic bases its budgets on patient-visits. During October, the clinic plans for a
level of activity of 2,100 patient-visits. The clinic has provided the following data concerning the
formulas it uses in its budgeting:
Fixed element
per month
Variable element per patient-
visit
Revenue
–
$
38.00
Personnel expenses
$
23,200
$
11.00
Medical supplies
$
700
$
5.90
Occupancy expenses
$
4,800
$
1.70
Administrative expenses
$
4,100
$
0.10
–
Required:
Prepare the clinic’s planning budget for October.
Budgeted patient-visits (q)
2,100
Revenue ($38.00q)
79,800
Personnel expenses ($23,200 + $11.00q)
46,300
Medical supplies ($700 + $5.90q)
13,090
Occupancy expenses ($4,800 + $1.70q)
8,370
Administrative expenses ($4,100 + $0.10q)
4,310
Total expense
72,070
Net operating income
7,730
–
351) During September, Ferman Clinic budgeted for 3,800 patient-visits, but its actual level of
activity was 4,100 patient-visits. The clinic uses the following revenue and cost formulas in its
budgeting, where q is the number of patient-visits:
Revenue: $21.60q
Personnel expenses: $22,600 + $6.60q
Medical supplies: $1,000 + $2.60q
Occupancy expenses: $6,000 + $0.90q
Administrative expenses: $4,300 + $0.30q
Required:
Prepare the clinic’s flexible budget for September based on the actual level of activity for the
month.
352) Muehlberger 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
$4,800
Employee salaries and wages
$58,200
$1,300
Travel expenses
$500
Other expenses
$40,800
A total of 28 customers were actually served during April.
Required:
Prepare a flexible budget for the actual level of activity for April.
Customers served (q)
Revenue ($4,800q)
Expenses:
Employee salaries and wages ($58,200 + $1,300q)
Travel expenses ($500q)
Other expenses ($40,800)
Total expenses
Net operating income
353) Luckman Corporation bases its budgets on the activity measure customers served. During
July, the company plans to serve 32,000 customers. The company has provided the following
data concerning the formulas it uses in its budgeting:
Fixed element
per month
Variable element per
customer
Revenue
–
$
3.70
Wages and salaries
$
29,300
$
1.10
Supplies
$
0
$
0.70
Insurance
$
8,400
$
0.00
Miscellaneous expense
$
4,600
$
0.30
–
Required:
Prepare the company’s planning budget for July.
Budgeted customers served (q)
32,000
Revenue ($3.70q)
118,400
Expenses:
Supplies ($0.70q)
22,400
Insurance ($8,400)
Miscellaneous expense ($4,600 + $0.30q)
14,200
Total expense
109,500
Net operating income
–
354) During June, Tarras Corporation plans to serve 36,000 customers. The company uses the
following revenue and cost formulas in its budgeting, where q is the number of customers
served:
Revenue: $3.50q
Wages and salaries: $35,100 + $0.90q
Supplies: $0.70q
Insurance: $8,500
Miscellaneous expense: $4,100 + $0.30q
Required:
Prepare the company’s planning budget for June.
355) During September, Clendennen Corporation budgeted for 24,000 customers, but actually
served 27,000 customers. The company uses the following revenue and cost formulas in its
budgeting, where q is the number of customers served:
Revenue: $6.00q
Wages and salaries: $36,700 + $2.10q
Supplies: $1.10q
Insurance: $12,600
Miscellaneous expense: $4,600 + $0.30q
Required:
Prepare the company’s flexible budget for September based on the actual level of activity for the
month.
356) Rameriz 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
$4,900
Employee salaries and wages
$42,800
$1,200
Refurbishing materials
$700
Other expenses
$38,200
A total of 34 containers were actually refurbished during May.
Required:
Prepare a flexible budget for the actual level of activity for May.
Containers refurbished (q)
Revenue ($4,900q)
Expenses:
Employee salaries and wages ($42,800 + $1,200q)
Refurbishing materials ($700q)
Other expenses ($38,200)
Total expenses
145,600
Net operating income
$21,000
357) During December, Hynes Corporation plans to serve 35,000 customers. Revenue is $2.00
per customer served. Wages and salaries are $24,600 per month plus $0.50 per customer served.
Supplies are $0.30 per customer served. Insurance is $5,400 per month. Miscellaneous expenses
are $4,100 per month plus $0.10 per customer served.
Required:
Prepare the company’s planning budget for December.
358) During October, Fryer Corporation budgeted for 30,000 customers, but actually served
33,000 customers. Revenue should be $2.90 per customer served. Wages and salaries should be
$27,200 per month plus $0.80 per customer served. Supplies should be $0.60 per customer
served. Insurance should be $6,700 per month. Miscellaneous expenses should be $3,100 per
month plus $0.10 per customer served.
Required:
Prepare the company’s flexible budget for October based on the actual level of activity for the
month.
359) During April, Shvey Clinic plans for an activity level of 2,100 patient-visits. Revenue is
$48.10 per patient-visit. Personnel expenses are $28,800 per month plus $12.30 per patient-visit.
Medical supplies are $1,300 per month plus $8.10 per patient-visit. Occupancy expenses are
$8,100 per month plus $2.00 per patient-visit. Administrative expenses are $2,900 per month
plus $0.20 per patient-visit.
Required:
Prepare the clinic’s planning budget for April.
360) Pargo Corporation bases its budgets on the activity measure customers served. During May,
the company planned to serve 29,000 customers, but actually served 30,000 customers. The
company has provided the following data concerning the formulas it uses in its budgeting:
Fixed element
per month
Variable element per
customer
Revenue
–
$
4.30
Wages and salaries
$
32,700
$
1.50
Supplies
$
0
$
0.70
Insurance
$
7,600
$
0.00
Miscellaneous expense
$
7,100
$
0.30
–
Required:
Prepare the company’s flexible budget for May based on the actual level of activity for the
month.
Actual customers served (q)
30,000
Revenue ($4.30q)
129,000
Wages and salaries ($32,700 + $1.50q)
77,700
Supplies ($0.70q)
21,000
Insurance ($7,600)
Miscellaneous expense ($7,100 + $0.30q)
16,100
Total expense
122,400
Net operating income
–
361) Brookings 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
$48,100
$1,000
Servicing materials
$600
Other expenses
$38,700
When the company prepared its planning budget at the beginning of August, it assumed that 34
wells would have been serviced.
Required:
Prepare the company’s planning budget for August.
Wells serviced (q)
Revenue ($4,500q)
Expenses:
Employee salaries and wages ($48,100 + $1,000q)
Servicing materials ($600q)
Other expenses ($38,700)
Total expenses
141,200
Net operating income
$11,800
362) Elvin Hospital bases its budgets on patient-visits. The hospital’s static planning budget for
May appears below:
Budgeted number of patient-visits
5,100
Budgeted variable costs:
Supplies (@ $2.70 per patient-visit)
$
13,770
Laundry (@ $3.00 per patient-visit)
15,300
Budgeted fixed costs:
Wages and salaries
16,830
Occupancy costs
16,890
Total expense
$
62,790
–
Required:
Prepare a flexible budget for 5,300 patient-visits per month.
Actual patient-visits (q)
Supplies ($2.70q)
$
14,310
Laundry ($3.00q)
15,900
Wages and salaries ($16,830)
Occupancy costs ($16,890)
16,890
Total expense
$
63,930
–
363) Ruiz Clinic bases its budgets on the activity measure patient-visits. During July, the clinic
planned for an activity level of 3,700 patient-visits, but the activity level was actually 3,600
patient-visits. The clinic has provided the following data concerning the formulas it uses in its
budgeting:
Fixed element per month
Variable element per patient-
visit
Revenue
–
$
22.80
Personnel expenses
$
24,200
$
6.80
Medical supplies
$
1,200
$
3.30
Occupancy expenses
$
5,000
$
0.80
Administrative expenses
$
3,100
$
0.30
–
Required:
Prepare the clinic’s flexible budget for July based on the actual level of activity for the month.
Actual patient-visits (q)
3,600
Revenue ($22.80q)
82,080
48,680
13,080
7,880
4,180
Total expense
73,820
Net operating income
8,260
–
364) Westby Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for February was based on 3,900 meals, but the diner actually
served 4,400 meals. The diner’s director has provided the following cost data to use in the
budget: groceries, $3.05 per meal; kitchen operations, $5,500 per month plus $1.40 per meal;
administrative expenses, $3,300 per month plus $0.80 per meal; and fundraising expenses,
$1,500 per month.
Required:
Prepare the diner’s flexible budget for the actual number of meals served in February. The budget
will only contain the costs listed above; no revenues will be on the budget.
365) Wytch Corporation bases its budgets on machine-hours. The company’s static planning
budget for February appears below:
Budgeted number of machine-hours
6,000
Budgeted variable costs:
Supplies (@ $6.90 per machine-hour)
$
41,400
Power (@ $3.70 per machine-hour)
22,200
Budgeted fixed costs:
Salaries
51,600
Equipment depreciation
26,400
Total expense
$
141,600
–
Required:
Prepare a flexible budget for 6,400 machine-hours per month.
Actual machine-hours (q)
Supplies ($6.90q)
$
Power ($3.70q)
Salaries ($51,600)
Equipment depreciation ($26,400)
26,400
Total expense
$
145,840
–
366) Barrom Memorial Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for July is to be based on 2,000 meals. The diner’s director has
provided the following cost formulas to use in the budget:
Fixed element
per month
Variable element per
customer
Groceries
$
0
$
2.50
Kitchen operations
$
5,200
$
1.40
Administrative expenses
$
2,900
$
0.75
Fundraising expenses
$
1,100
$
0.00
–
Required:
Prepare the diner’s budget for the month of July. The budget will only contain the costs listed
above; no revenues will be on the budget.
Budgeted meals (q)
Groceries ($2.50q)
Kitchen operations ($5,200 + $1.40q)
Administrative expenses ($2,900 + $0.75q)
Fundraising expenses ($1,100)
Total expense
–
367) During February, Barreca Clinic plans for an activity level of 2,700 patient-visits. The
clinic uses the following revenue and cost formulas in its budgeting, where q is the number of
patient-visits:
Revenue: $49.10q
Personnel expenses: $34,100 + $13.20q
Medical supplies: $1,300 + $9.40q
Occupancy expenses: $8,300 + $1.40q
Administrative expenses: $6,100 + $0.30q
Required:
Prepare the clinic’s planning budget for February.
368) During June, Montera Clinic budgeted for 3,800 patient-visits, but its actual level of activity
was 3,400 patient-visits. Revenue should be $25.20 per patient-visit. Personnel expenses should
be $22,600 per month plus $7.00 per patient-visit. Medical supplies should be $800 per month
plus $4.80 per patient-visit. Occupancy expenses should be $6,900 per month plus $0.90 per
patient-visit. Administrative expenses should be $4,800 per month plus $0.40 per patient-visit.
Required:
Prepare the clinic’s flexible budget for June based on the actual level of activity for the month.