Accounting Chapter 9 5 Virgen Kennel uses tenant-days as its measure of activity; an animal housed

104) Hubbard 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 January, the kennel budgeted for 2,100 tenant-

days, but its actual level of activity was 2,060 tenant-days. The kennel has provided the

following data concerning the formulas used in its budgeting and its actual results for January:

Data used in budgeting:

Fixed Element

per Month

Variable element

per tenant-day

Revenue

–

$

31.10

Wages and salaries

$

2,300

$

7.20

Food and supplies

1,000

8.10

Facility expenses

9,500

2.70

Administrative expenses

7,000

0.30

Total expenses

$

19,800

$

18.30

Actual results for January:

Revenue

$

63,606

Wages and salaries

$

17,282

Food and supplies

$

18,346

Facility expenses

$

14,432

Administrative expenses

$

7,408

The facility expenses in the flexible budget for January would be closest to:

A) $14,157

B) $14,712

C) $15,170

D) $15,062

82

105) Hubbard 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 January, the kennel budgeted for 2,100 tenant-

days, but its actual level of activity was 2,060 tenant-days. The kennel has provided the

following data concerning the formulas used in its budgeting and its actual results for January:

Data used in budgeting:

Fixed Element

per Month

Variable element

per tenant-day

Revenue

–

$

31.10

Wages and salaries

$

2,300

$

7.20

Food and supplies

1,000

8.10

Facility expenses

9,500

2.70

Administrative expenses

7,000

0.30

Total expenses

$

19,800

$

18.30

Actual results for January:

Revenue

$

63,606

Wages and salaries

$

17,282

Food and supplies

$

18,346

Facility expenses

$

14,432

Administrative expenses

$

7,408

The net operating income in the flexible budget for January would be closest to:

A) $6,568

B) $6,021

C) $6,257

D) $7,080

106) Virgen 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 May, the kennel budgeted for 3,700 tenant-

days, but its actual level of activity was 3,690 tenant-days. The kennel 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 tenant-day

Revenue

–

$

26.40

Wages and salaries

$

2,500

$

6.10

Food and supplies

1,300

9.70

Facility expenses

8,600

2.60

Administrative expenses

6,800

0.40

Total expenses

$

19,200

$

18.80

Actual results for May:

Revenue

$

92,626

Wages and salaries

$

23,919

Food and supplies

$

37,833

Facility expenses

$

18,594

Administrative expenses

$

8,386

The wages and salaries in the planning budget for May would be closest to:

A) $25,070

B) $25,009

C) $23,919

D) $23,984

107) Virgen 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 May, the kennel budgeted for 3,700 tenant-

days, but its actual level of activity was 3,690 tenant-days. The kennel 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 tenant-day

Revenue

–

$

26.40

Wages and salaries

$

2,500

$

6.10

Food and supplies

1,300

9.70

Facility expenses

8,600

2.60

Administrative expenses

6,800

0.40

Total expenses

$

19,200

$

18.80

Actual results for May:

Revenue

$

92,626

Wages and salaries

$

23,919

Food and supplies

$

37,833

Facility expenses

$

18,594

Administrative expenses

$

8,386

The administrative expenses in the planning budget for May would be closest to:

A) $8,409

B) $8,386

C) $8,280

D) $8,276

108) Virgen 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 May, the kennel budgeted for 3,700 tenant-

days, but its actual level of activity was 3,690 tenant-days. The kennel 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 tenant-day

Revenue

–

$

26.40

Wages and salaries

$

2,500

$

6.10

Food and supplies

1,300

9.70

Facility expenses

8,600

2.60

Administrative expenses

6,800

0.40

Total expenses

$

19,200

$

18.80

Actual results for May:

Revenue

$

92,626

Wages and salaries

$

23,919

Food and supplies

$

37,833

Facility expenses

$

18,594

Administrative expenses

$

8,386

The net operating income in the planning budget for May would be closest to:

A) $3,905

B) $3,883

C) $8,844

D) $8,920

Revenue per tenant-day

$

26.40

Total variable expense per tenant-day

Contribution margin per tenant-day

$

Total fixed expense

$

19,200

109) Duprey Clinic uses client-visits as its measure of activity. During January, the clinic

budgeted for 2,200 client-visits, but its actual level of activity was 2,150 client-visits. The clinic

has provided the following data concerning the formulas used in its budgeting and its actual

results for January:

Data used in budgeting:

Fixed Element

per Month

Variable element

per client-visit

Revenue

–

$

58.40

Personnel expenses

$

33,500

$

18.00

Medical supplies

1,000

9.90

Occupancy expenses

9,300

2.20

Administrative expenses

5,300

0.40

Total expenses

$

49,100

$

30.50

Actual results for January:

Revenue

$

127,950

Personnel expenses

$

69,720

Medical supplies

$

23,125

Occupancy expenses

$

14,290

Administrative expenses

$

5,930

The personnel expenses in the planning budget for January would be closest to:

A) $73,100

B) $72,200

C) $69,720

D) $71,341

110) Duprey Clinic uses client-visits as its measure of activity. During January, the clinic

budgeted for 2,200 client-visits, but its actual level of activity was 2,150 client-visits. The clinic

has provided the following data concerning the formulas used in its budgeting and its actual

results for January:

Data used in budgeting:

Fixed Element

per Month

Variable element

per client-visit

Revenue

–

$

58.40

Personnel expenses

$

33,500

$

18.00

Medical supplies

1,000

9.90

Occupancy expenses

9,300

2.20

Administrative expenses

5,300

0.40

Total expenses

$

49,100

$

30.50

Actual results for January:

Revenue

$

127,950

Personnel expenses

$

69,720

Medical supplies

$

23,125

Occupancy expenses

$

14,290

Administrative expenses

$

5,930

The administrative expenses in the planning budget for January would be closest to:

A) $6,160

B) $6,068

C) $5,930

D) $6,180

111) Duprey Clinic uses client-visits as its measure of activity. During January, the clinic

budgeted for 2,200 client-visits, but its actual level of activity was 2,150 client-visits. The clinic

has provided the following data concerning the formulas used in its budgeting and its actual

results for January:

Data used in budgeting:

Fixed Element

per Month

Variable element

per client-visit

Revenue

–

$

58.40

Personnel expenses

$

33,500

$

18.00

Medical supplies

1,000

9.90

Occupancy expenses

9,300

2.20

Administrative expenses

5,300

0.40

Total expenses

$

49,100

$

30.50

Actual results for January:

Revenue

$

127,950

Personnel expenses

$

69,720

Medical supplies

$

23,125

Occupancy expenses

$

14,290

Administrative expenses

$

5,930

The net operating income in the planning budget for January would be closest to:

A) $15,231

B) $10,885

C) $14,547

D) $12,280

Revenue per client-visit

$

58.40

Total variable expense per client-visit

Contribution margin per client-visit

$

Total fixed expense

$

49,100

112) Chimilio Clinic uses client-visits as its measure of activity. During June, the clinic budgeted

for 3,400 client-visits, but its actual level of activity was 3,360 client-visits. The clinic has

provided the following data concerning the formulas used in its budgeting and its actual results

for June:

Data used in budgeting:

Fixed Element

per Month

Variable element

per client-visit

Revenue

–

$

33.70

Personnel expenses

$

27,300

$

10.70

Medical supplies

1,200

5.50

Occupancy expenses

9,000

1.50

Administrative expenses

4,100

0.30

Total expenses

$

41,600

$

18.00

Actual results for January:

Revenue

$

112,062

Personnel expenses

$

64,602

Medical supplies

$

19,900

Occupancy expenses

$

13,640

Administrative expenses

$

5,068

The medical supplies in the flexible budget for June would be closest to:

A) $19,680

B) $19,666

C) $20,137

D) $19,900

113) Chimilio Clinic uses client-visits as its measure of activity. During June, the clinic budgeted

for 3,400 client-visits, but its actual level of activity was 3,360 client-visits. The clinic has

provided the following data concerning the formulas used in its budgeting and its actual results

for June:

Data used in budgeting:

Fixed Element

per Month

Variable element

per client-visit

Revenue

–

$

33.70

Personnel expenses

$

27,300

$

10.70

Medical supplies

1,200

5.50

Occupancy expenses

9,000

1.50

Administrative expenses

4,100

0.30

Total expenses

$

41,600

$

18.00

Actual results for January:

Revenue

$

112,062

Personnel expenses

$

64,602

Medical supplies

$

19,900

Occupancy expenses

$

13,640

Administrative expenses

$

5,068

The occupancy expenses in the flexible budget for June would be closest to:

A) $13,802

B) $14,100

C) $14,040

D) $13,480

114) Chimilio Clinic uses client-visits as its measure of activity. During June, the clinic budgeted

for 3,400 client-visits, but its actual level of activity was 3,360 client-visits. The clinic has

provided the following data concerning the formulas used in its budgeting and its actual results

for June:

Data used in budgeting:

Fixed Element

per Month

Variable element

per client-visit

Revenue

–

$

33.70

Personnel expenses

$

27,300

$

10.70

Medical supplies

1,200

5.50

Occupancy expenses

9,000

1.50

Administrative expenses

4,100

0.30

Total expenses

$

41,600

$

18.00

Actual results for January:

Revenue

$

112,062

Personnel expenses

$

64,602

Medical supplies

$

19,900

Occupancy expenses

$

13,640

Administrative expenses

$

5,068

The net operating income in the flexible budget for June would be closest to:

A) $8,957

B) $11,152

C) $11,780

D) $8,748

Revenue per client-visit

$

33.70

Total variable expense per client-visit

Contribution margin per client-visit

$

Total fixed expense

$

41,600

115) Spohn Clinic uses client-visits as its measure of activity. During February, the clinic

budgeted for 3,400 client-visits, but its actual level of activity was 3,370 client-visits. The clinic

has provided the following data concerning the formulas to be used in its budgeting for February:

Fixed Element

per Month

Variable element

per client-visit

Revenue

–

$

28.10

Personnel expenses

$

26,100

$

7.70

Medical supplies

900

5.10

Occupancy expenses

5,600

0.80

Administrative expenses

4,300

0.40

Total expenses

$

36,900

$

14.00

The administrative expenses in the planning budget for February would be closest to:

A) $5,648

B) $5,418

C) $5,466

D) $5,660

116) Spohn Clinic uses client-visits as its measure of activity. During February, the clinic

budgeted for 3,400 client-visits, but its actual level of activity was 3,370 client-visits. The clinic

has provided the following data concerning the formulas to be used in its budgeting for February:

Fixed Element

per Month

Variable element

per client-visit

Revenue

–

$

28.10

Personnel expenses

$

26,100

$

7.70

Medical supplies

900

5.10

Occupancy expenses

5,600

0.80

Administrative expenses

4,300

0.40

Total expenses

$

36,900

$

14.00

The net operating income in the planning budget for February would be closest to:

A) $11,862

B) $11,653

C) $11,040

D) $10,617

Revenue per client-visit

28.10

Contribution margin per client-visit

Total fixed expense

36,900

117) Spohn Clinic uses client-visits as its measure of activity. During February, the clinic

budgeted for 3,400 client-visits, but its actual level of activity was 3,370 client-visits. The clinic

has provided the following data concerning the formulas to be used in its budgeting for February:

Fixed Element

per Month

Variable element

per client-visit

Revenue

–

$

28.10

Personnel expenses

$

26,100

$

7.70

Medical supplies

900

5.10

Occupancy expenses

5,600

0.80

Administrative expenses

4,300

0.40

Total expenses

$

36,900

$

14.00

The medical supplies in the flexible budget for February would be closest to:

A) $17,512

B) $17,204

C) $18,087

D) $18,240

118) Neubert Corporation manufactures and sells a single product. The company uses units as

the measure of activity in its budgets and performance reports. During December, the company

budgeted for 5,300 units, but its actual level of activity was 5,340 units. The company 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 unit

Revenue

–

$

30.00

Direct labor

$

0

$

3.50

Direct materials

0

10.40

Manufacturing overhead

33,300

1.50

Selling and administrative expenses

25,000

0.50

Total expenses

$

58,300

$

15.90

Actual results for December:

Revenue

$

156,340

Direct labor

$

17,980

Direct materials

$

56,566

Manufacturing overhead

$

41,040

Selling and administrative expenses

$

28,870

The direct labor in the planning budget for December would be closest to:

A) $18,550

B) $17,980

C) $18,690

D) $17,845

119) Neubert Corporation manufactures and sells a single product. The company uses units as

the measure of activity in its budgets and performance reports. During December, the company

budgeted for 5,300 units, but its actual level of activity was 5,340 units. The company 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 unit

Revenue

–

$

30.00

Direct labor

$

0

$

3.50

Direct materials

0

10.40

Manufacturing overhead

33,300

1.50

Selling and administrative expenses

25,000

0.50

Total expenses

$

58,300

$

15.90

Actual results for December:

Revenue

$

156,340

Direct labor

$

17,980

Direct materials

$

56,566

Manufacturing overhead

$

41,040

Selling and administrative expenses

$

28,870

The manufacturing overhead in the flexible budget for December would be closest to:

A) $41,350

B) $40,733

C) $41,250

D) $41,310

98

120) Neubert Corporation manufactures and sells a single product. The company uses units as

the measure of activity in its budgets and performance reports. During December, the company

budgeted for 5,300 units, but its actual level of activity was 5,340 units. The company 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 unit

Revenue

–

$

30.00

Direct labor

$

0

$

3.50

Direct materials

0

10.40

Manufacturing overhead

33,300

1.50

Selling and administrative expenses

25,000

0.50

Total expenses

$

58,300

$

15.90

Actual results for December:

Revenue

$

156,340

Direct labor

$

17,980

Direct materials

$

56,566

Manufacturing overhead

$

41,040

Selling and administrative expenses

$

28,870

The net operating income in the flexible budget for December would be closest to:

A) $16,430

B) $16,994

C) $11,795

D) $11,974

121) Kekiwi Corporation manufactures and sells a single product. The company uses units as the

measure of activity in its budgets and performance reports. During January, the company

budgeted for 6,900 units, but its actual level of activity was 6,910 units. The company has

provided the following data concerning the formulas used in its budgeting and its actual results

for January:

Data used in budgeting:

Fixed Element

per Month

Variable element

per unit

Revenue

–

$

39.30

Direct labor

$

0

$

3.10

Direct materials

0

18.90

Manufacturing overhead

45,900

1.70

Selling and administrative expenses

27,000

0.30

Total expenses

$

72,900

$

24.00

Actual results for January:

Revenue

$

281,473

Direct labor

$

20,591

Direct materials

$

134,889

Manufacturing overhead

$

57,087

Selling and administrative expenses

$

28,063

The direct materials in the flexible budget for January would be closest to:

A) $130,599

B) $134,694

C) $130,410

D) $135,084