369) Varcoe Corporation bases its budgets on the activity measure customers served. During
September, the company planned to serve 30,000 customers, but actually served 25,000
customers. Revenue is $3.80 per customer served. Wages and salaries are $34,100 per month
plus $1.20 per customer served. Supplies are $0.50 per customer served. Insurance is $8,300 per
month. Miscellaneous expenses are $6,400 per month plus $0.20 per customer served.
Required:
Prepare a report showing the company’s activity variances for September. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
370) Solimini Memorial Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for January was based on 3,900 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
$
4,400
$
1.75
Administrative expenses
$
3,500
$
0.15
Fundraising expenses
$
1,400
$
0.00
–
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses
for January. Label each variance as favorable (F) or unfavorable (U).
Budget
Meals (q)
Groceries ($2.20q)
Kitchen operations ($4,400 + $1.75q)
Administrative expenses ($3,500 + $0.15q)
Fundraising expenses ($1,400)
0
Total expense
–
371) Quesnel Clinic bases its budgets on the activity measure patient-visits. During February, the
clinic planned for 2,800 patient-visits, but its actual level of activity was 3,000 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
–
$
28.00
Personnel expenses
$
21,800
$
8.30
Medical supplies
$
800
$
4.10
Occupancy expenses
$
6,000
$
1.00
Administrative expenses
$
2,800
$
0.10
–
Required:
Prepare a report showing the clinic’s activity variances for February. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
Patient-visits (q)
3,000
2,800
Revenue ($28.00q)
84,000
$
$
5,600
Expenses:
46,700
1,660
U
13,100
U
9,000
8,800
U
$0.10q)
Total expense
71,900
2,700
U
Net operating income
12,100
$
9,200
$
2,900
–
364
372) Chaloux Clinic bases its budgets on the activity measure patient-visits. During July, the
clinic planned for 3,100 patient-visits. The clinic has provided the following data concerning the
formulas it uses in its budgeting:
Fixed element
per month
Variable element per
customer
Revenue
–
$
51.80
Wages and salaries
$
36,300
$
16.20
Supplies
$
1,000
$
9.60
Insurance
$
12,000
$
2.60
Miscellaneous expense
$
5,400
$
0.10
–
The clinic has also furnished its income statement for July:
Chaloux Clinic
Income Statement
For the Month Ended July 31
Actual patient-visits
2,900
Revenue
$
151,280
Expenses:
Personnel expenses
81,630
Medical supplies
28,820
Occupancy expenses
20,160
Administrative expenses
5,910
Total expense
136,520
Net operating income
$
14,760
Required:
Prepare a report showing the clinic’s activity variances for July.
373) Varriano Corporation bases its budgets on the activity measure customers served. During
October, the company planned to serve 31,000 customers, but actually served 34,000 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
–
$
3.60
Wages and salaries
$
35,100
$
1.00
Supplies
$
0
$
0.80
Insurance
$
8,700
$
0.00
Miscellaneous expense
$
4,700
$
0.10
–
Required:
Prepare a report showing the company’s activity variances for October. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
Customers served (q)
31,000
Revenue ($3.60q)
$
$
111,600
10,800
Expenses:
24,800
2,400
U
8,700
0
Total expense
107,400
5,700
U
Net operating income
$
9,300
$
5,100
–
374) Ruge Clinic bases its budgets on the activity measure patient-visits. During November, the
clinic planned for 2,100 patient-visits, but the actual level of activity was 2,300 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
–
$
54.10
Personnel expenses
$
27,100
$
18.00
Medical supplies
$
1,500
$
8.40
Occupancy expenses
$
7,300
$
2.00
Administrative expenses
$
3,500
$
0.10
–
Required:
Prepare a report showing the clinic’s activity variances for November. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
Patient-visits (q)
2,300
Revenue ($54.10q)
$
$
113,610
10,820
Expenses:
20,820
19,140
1,680
U
Total expense
99,250
5,700
U
Net operating income
$
19,480
$
14,360
5,120
368
375) Dukette Memorial Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for August was based on 2,600 meals, but the diner actually served
2,200 meals. The diner’s director has provided the following cost formulas to use in budgets:
Fixed element
per month
Variable element per
customer
Groceries
0
$
3.65
Kitchen operations
$
4,500
$
1.15
Administrative expenses
$
2,900
$
0.55
Fundraising expenses
$
1,300
$
0.00
–
The director has also provided the diner’s statement of actual expenses for the month:
Dukette Memorial Diner
Statement of Expenses
For the Month Ended August 31
Actual meals
2,200
Groceries
$
7,950
Kitchen operations
7,110
Administrative expenses
4,230
Fundraising expenses
1,270
Total expense
$
20,560
–
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses
for August. Label each variance as favorable (F) or unfavorable (U).
370
376) Felicetti Corporation bases its budgets on the activity measure customers served. During
November, the company planned to serve 21,000 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
–
$
6.90
Wages and salaries
$
37,700
$
2.70
Supplies
$
0
$
1.10
Insurance
$
9,900
$
0.00
Miscellaneous expense
$
6,600
$
0.20
–
The company has also furnished its income statement for November
Felicetti Corporation
Activity Variances
For the Month Ended November 30
Actual customers served
26,000
Revenue
177,900
Expenses:
Wages and salaries
108,900
Supplies
26,900
Insurance
11,900
Miscellaneous expense
14,200
Total expense
161,900
Net operating income
16,000
–
Required:
Prepare a report showing the company’s activity variances for November. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
377) Adamyan Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for May was based on 3,700 meals, but the diner actually served
3,200 meals. The diner’s director has provided the following cost data to use in the budget:
groceries, $2.10 per meal; kitchen operations, $5,700 per month plus $1.55 per meal;
administrative expenses, $3,800 per month plus $0.35 per meal; and fundraising expenses,
$1,500 per month. The director has also provided the diner’s statement of actual expenses for the
month:
Adamyan Urban Diner
Statement of Expenses
For the Month Ended May 31
Actual meals
3,200
Groceries
$
6,560
Kitchen operations
10,130
Administrative expenses
4,760
Fundraising expenses
1,510
Total expense
$
22,960
equired:
Prepare a report showing the activity variances for each of the expenses and for total expenses
for May.
Variances
Meals (q)
3,700
Groceries ($2.10q)
$
$
7,770
$
1,050
F
Kitchen operations ($5,700 + $1.55q)
10,660
11,435
F
Administrative expenses ($3,800 + $0.35q)
5,095
F
Fundraising expenses ($1,500)
1,500
Total expense
$
23,800
$
25,800
$
2,000
F
378) Ginnings Corporation bases its budgets on the activity measure customers served. During
May, the company planned to serve 38,000 customers, but actually served 37,000 customers. The
company uses the following revenue and cost formulas in its budgeting, where q is the number of
customers served:
Revenue: $2.90q
Wages and salaries: $37,200 + $0.80q
Supplies: $0.40q
Insurance: $8,900
Miscellaneous expense: $6,400 + $0.10q
Required:
Prepare a report showing the company’s activity variances for May. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
379) Poling Clinic bases its budgets on the activity measure patient-visits. During July, the clinic
planned for 3,600 patient-visits, but its actual level of activity was 4,000 patient-visits. Revenue
should be $30.40 per patient-visit. Personnel expenses should be $30,000 per month plus $9.30
per patient-visit. Medical supplies should be $1,000 per month plus $3.70 per patient-visit.
Occupancy expenses should be $9,300 per month plus $0.80 per patient-visit. Administrative
expenses should be $4,300 per month plus $0.30 per patient-visit.
Required:
Prepare a report showing the clinic’s activity variances for July. Indicate in each case whether the
variance is favorable (F) or unfavorable (U).
380) Shevlin Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for July was based on 3,200 meals, but the diner actually served
3,600 meals. The diner’s director has provided the following cost data to use in the budget:
groceries, $3.35 per meal; kitchen operations, $5,800 per month plus $1.25 per meal;
administrative expenses, $3,400 per month plus $0.40 per meal; and fundraising expenses,
$1,400 per month.
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses
for July. Label each variance as favorable (F) or unfavorable (U).
376
381) Furney Clinic uses patient-visits as its measure of activity. During May, the clinic budgeted
for 3,400 patient-visits, but its actual level of activity was 3,000 patient-visits. The clinic bases
its budgets on the following information: Revenue should be $38.00 per patient-visit. Personnel
expenses should be $36,000 per month plus $10.80 per patient-visit. Medical supplies should be
$1,000 per month plus $6.00 per patient-visit. Occupancy expenses should be $9,300 per month
plus $2.00 per patient-visit. Administrative expenses should be $5,500 per month plus $0.30 per
patient-visit. The clinic reported the following actual results for May:
Revenue
113,640
Personnel expenses
71,090
Medical supplies
18,070
Occupancy expenses
14,550
Administrative expenses
6,190
–
Required:
Prepare the clinic’s flexible budget performance report for May. Label each variance as favorable
(F) or unfavorable (U).
379
382) Vondran Clinic uses patient-visits as its measure of activity. During December, the clinic
budgeted for 3,600 patient-visits, but its actual level of activity was 3,100 patient-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
Variable element per
customer
Revenue
–
$
48.50
Personnel expenses
$
38,300
$
14.90
Medical supplies
$
1,500
$
9.20
Occupancy expenses
$
12,900
$
2.40
Administrative expenses
$
8,300
$
0.20
–
Actual results for December:
Revenue
154,250
Personnel expenses
86,500
Medical supplies
29,230
Occupancy expenses
20,530
Administrative expenses
9,010
–
Required:
Prepare the clinic’s flexible budget performance report for December. Label each variance as
favorable (F) or unfavorable (U).