146) Grohs 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 December, the kennel budgeted for 2,500
tenant-days, but its actual level of activity was 2,530 tenant-days. The kennel has provided the
following data concerning the formulas to be used in its budgeting:
Fixed Element
per Month
Variable element
per tenant-day
Revenue
–
$
33.00
Wages and salaries
$
3,800
$
7.90
Food and supplies
1,000
11.60
Facility expenses
8,600
2.20
Administrative expenses
6,200
0.20
Total expenses
$
19,600
$
21.90
The food and supplies in the flexible budget for December would be closest to:
A) $30,000
B) $30,348
C) $29,791
D) $30,510
147) Ibsen Clinic uses client-visits as its measure of activity. During December, the clinic
budgeted for 3,300 client-visits, but its actual level of activity was 3,340 client-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 client-visit
Revenue
–
$
40.00
Personnel expenses
$
32,400
$
13.40
Medical supplies
1,500
4.80
Occupancy expenses
9,100
2.10
Administrative expenses
6,700
0.40
Total expenses
$
49,700
$
20.70
Actual results for December:
Revenue
$
134,170
Personnel expenses
$
80,776
Medical supplies
$
17,302
Occupancy expenses
$
15,754
Administrative expenses
$
8,296
The personnel expenses in the planning budget for December would be closest to:
A) $76,620
B) $77,156
C) $79,809
D) $80,776
148) Ibsen Clinic uses client-visits as its measure of activity. During December, the clinic
budgeted for 3,300 client-visits, but its actual level of activity was 3,340 client-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 client-visit
Revenue
–
$
40.00
Personnel expenses
$
32,400
$
13.40
Medical supplies
1,500
4.80
Occupancy expenses
9,100
2.10
Administrative expenses
6,700
0.40
Total expenses
$
49,700
$
20.70
Actual results for December:
Revenue
$
134,170
Personnel expenses
$
80,776
Medical supplies
$
17,302
Occupancy expenses
$
15,754
Administrative expenses
$
8,296
The occupancy expenses in the flexible budget for December would be closest to:
A) $15,565
B) $16,114
C) $15,945
D) $16,030
124
149) Ibsen Clinic uses client-visits as its measure of activity. During December, the clinic
budgeted for 3,300 client-visits, but its actual level of activity was 3,340 client-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 client-visit
Revenue
–
$
40.00
Personnel expenses
$
32,400
$
13.40
Medical supplies
1,500
4.80
Occupancy expenses
9,100
2.10
Administrative expenses
6,700
0.40
Total expenses
$
49,700
$
20.70
Actual results for December:
Revenue
$
134,170
Personnel expenses
$
80,776
Medical supplies
$
17,302
Occupancy expenses
$
15,754
Administrative expenses
$
8,296
The net operating income in the flexible budget for December would be closest to:
A) $13,990
B) $14,762
C) $11,898
D) $12,188
150) Tessmer 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 3,100 tenant-
days, but its actual level of activity was 3,090 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
–
$
33.60
Wages and salaries
$
3,500
$
7.40
Food and supplies
500
10.50
Facility expenses
9,500
4.70
Administrative expenses
6,600
0.30
Total expenses
$
20,100
$
22.90
Actual results for January:
Revenue
$
105,934
Wages and salaries
$
27,186
Food and supplies
$
32,485
Facility expenses
$
24,873
Administrative expenses
$
7,557
The food and supplies in the flexible budget for January would be closest to:
A) $32,945
B) $32,590
C) $32,380
D) $33,050
151) Tessmer 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 3,100 tenant-
days, but its actual level of activity was 3,090 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
–
$
33.60
Wages and salaries
$
3,500
$
7.40
Food and supplies
500
10.50
Facility expenses
9,500
4.70
Administrative expenses
6,600
0.30
Total expenses
$
20,100
$
22.90
Actual results for January:
Revenue
$
105,934
Wages and salaries
$
27,186
Food and supplies
$
32,485
Facility expenses
$
24,873
Administrative expenses
$
7,557
The facility expenses in the flexible budget for January would be closest to:
A) $24,793
B) $24,023
C) $24,070
D) $24,953
152) Tessmer 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 3,100 tenant-
days, but its actual level of activity was 3,090 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
–
$
33.60
Wages and salaries
$
3,500
$
7.40
Food and supplies
500
10.50
Facility expenses
9,500
4.70
Administrative expenses
6,600
0.30
Total expenses
$
20,100
$
22.90
Actual results for January:
Revenue
$
105,934
Wages and salaries
$
27,186
Food and supplies
$
32,485
Facility expenses
$
24,873
Administrative expenses
$
7,557
The net operating income in the flexible budget for January would be closest to:
A) $13,878
B) $13,788
C) $12,963
D) $13,070
Revenue per tenant-day
$
33.60
Total variable expense per tenant-day
Contribution margin per tenant-day
$
Total fixed expense
$
20,100
153) Lawes Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During July, the company budgeted
for 5,000 units, but its actual level of activity was 5,050 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
–
$
34.70
Direct labor
$
0
$
6.00
Direct materials
0
13.20
Manufacturing overhead
31,000
1.90
Selling and administrative expenses
20,300
0.10
Total expenses
$
51,300
$
21.20
The direct labor in the planning budget for July would be closest to:
A) $30,574
B) $30,880
C) $30,300
D) $30,000
154) Lawes Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During July, the company budgeted
for 5,000 units, but its actual level of activity was 5,050 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
–
$
34.70
Direct labor
$
0
$
6.00
Direct materials
0
13.20
Manufacturing overhead
31,000
1.90
Selling and administrative expenses
20,300
0.10
Total expenses
$
51,300
$
21.20
The selling and administrative expenses in the planning budget for July would be closest to:
A) $20,800
B) $20,805
C) $20,705
D) $20,500
155) Lawes Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During July, the company budgeted
for 5,000 units, but its actual level of activity was 5,050 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
–
$
34.70
Direct labor
$
0
$
6.00
Direct materials
0
13.20
Manufacturing overhead
31,000
1.90
Selling and administrative expenses
20,300
0.10
Total expenses
$
51,300
$
21.20
The net operating income in the planning budget for July would be closest to:
A) $23,668
B) $16,200
C) $16,875
D) $24,144
Revenue per unit
$
34.70
Total variable expense per unit
Contribution margin per unit
$
Total fixed expense
$
51,300
156) Capelli Hospital bases its budgets on patient-visits. The hospital’s static budget for August
appears below:
Budgeted number of patient-visits
8,300
Budgeted variable costs:
Supplies (@$5.00 per patient-visit)
$
41,500
Laundry (@$7.30 per patient-visit)
60,590
Total variable cost
102,090
Budgeted fixed costs:
Wages and salaries
60,590
Occupancy costs
73,040
Total fixed cost
133,630
Total cost
$
235,720
The total variable cost at the activity level of 9,300 patient-visits per month should be:
A) $114,390
B) $149,730
C) $102,090
D) $133,630
Budgeted number of patient-visits
Budgeted variable costs:
Supplies (@$5.00 per patient-visit)
$
46,500
Laundry (@$7.30 per patient-visit)
67,890
Total variable cost
$
114,390
157) Capelli Hospital bases its budgets on patient-visits. The hospital’s static budget for August
appears below:
Budgeted number of patient-visits
8,300
Budgeted variable costs:
Supplies (@$5.00 per patient-visit)
$
41,500
Laundry (@$7.30 per patient-visit)
60,590
Total variable cost
102,090
Budgeted fixed costs:
Wages and salaries
60,590
Occupancy costs
73,040
Total fixed cost
133,630
Total cost
$
235,720
The total fixed cost at the activity level of 9,600 patient-visits per month should be:
A) $133,630
B) $154,560
C) $235,720
D) $272,640
Budgeted number of patient-visits
Budgeted fixed costs:
Wages and salaries
$
60,590
Occupancy costs
73,040
Total fixed cost
$
133,630
158) Capelli Hospital bases its budgets on patient-visits. The hospital’s static budget for August
appears below:
Budgeted number of patient-visits
8,300
Budgeted variable costs:
Supplies (@$5.00 per patient-visit)
$
41,500
Laundry (@$7.30 per patient-visit)
60,590
Total variable cost
102,090
Budgeted fixed costs:
Wages and salaries
60,590
Occupancy costs
73,040
Total fixed cost
133,630
Total cost
$
235,720
The total cost at the activity level of 9,400 patient-visits per month should be:
A) $235,720
B) $249,250
C) $266,960
D) $250,640
Budgeted number of patient-visits
Budgeted variable costs:
Supplies (@$5.00 per patient-visit)
$
47,000
Laundry (@$7.30 per patient-visit)
68,620
Total variable cost
115,620
Budgeted fixed costs:
Wages and salaries
60,590
Occupancy costs
73,040
Total fixed cost
133,630
Total cost
$
249,250
159) Hallet Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During May, the company budgeted
for 5,800 units, but its actual level of activity was 5,830 units. The company 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
unit
Revenue
–
$
32.30
Direct labor
$
0
$
3.40
Direct materials
0
10.40
Manufacturing overhead
46,700
1.10
Selling and administrative expenses
26,200
0.80
Total expenses
$
72,900
$
15.70
Actual results for May:
Revenue
$
191,229
Direct labor
$
19,872
Direct materials
$
60,622
Manufacturing overhead
$
50,523
Selling and administrative expenses
$
30,654
The direct labor in the planning budget for May would be closest to:
A) $19,720
B) $19,770
C) $19,872
D) $19,822
160) Hallet Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During May, the company budgeted
for 5,800 units, but its actual level of activity was 5,830 units. The company 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
unit
Revenue
–
$
32.30
Direct labor
$
0
$
3.40
Direct materials
0
10.40
Manufacturing overhead
46,700
1.10
Selling and administrative expenses
26,200
0.80
Total expenses
$
72,900
$
15.70
Actual results for May:
Revenue
$
191,229
Direct labor
$
19,872
Direct materials
$
60,622
Manufacturing overhead
$
50,523
Selling and administrative expenses
$
30,654
The selling and administrative expenses in the planning budget for May would be closest to:
A) $30,840
B) $30,654
C) $30,864
D) $30,496
137
161) Hallet Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During May, the company budgeted
for 5,800 units, but its actual level of activity was 5,830 units. The company 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
unit
Revenue
–
$
32.30
Direct labor
$
0
$
3.40
Direct materials
0
10.40
Manufacturing overhead
46,700
1.10
Selling and administrative expenses
26,200
0.80
Total expenses
$
72,900
$
15.70
Actual results for May:
Revenue
$
191,229
Direct labor
$
19,872
Direct materials
$
60,622
Manufacturing overhead
$
50,523
Selling and administrative expenses
$
30,654
The net operating income in the planning budget for May would be closest to:
A) $23,380
B) $23,878
C) $29,711
D) $29,406
162) Leven Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 3,000 client-visits, but its actual level of activity was 3,050 client-visits. The clinic
has provided the following data concerning the formulas to be used in its budgeting for
September:
Fixed element
per month
Variable element
per client-visit
Revenue
–
$
31.00
Personnel expenses
$
23,900
$
10.70
Medical supplies
1,400
3.90
Occupancy expenses
5,700
1.10
Administrative expenses
5,100
0.10
Total expenses
$
36,100
$
15.80
–
The personnel expenses in the planning budget for September would be closest to:
A) $56,535
B) $54,575
C) $55,485
D) $56,000
163) Leven Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 3,000 client-visits, but its actual level of activity was 3,050 client-visits. The clinic
has provided the following data concerning the formulas to be used in its budgeting for
September:
Fixed element
per month
Variable element
per client-visit
Revenue
–
$
31.00
Personnel expenses
$
23,900
$
10.70
Medical supplies
1,400
3.90
Occupancy expenses
5,700
1.10
Administrative expenses
5,100
0.10
Total expenses
$
36,100
$
15.80
–
The administrative expenses in the planning budget for September would be closest to:
A) $5,400
B) $5,346
C) $5,405
D) $5,435