164) 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 net operating income in the planning budget for September would be closest to:
A) $9,500
B) $7,259
C) $10,260
D) $7,503
Revenue per client-visit
31.00
Total variable expense per client-visit
Contribution margin per client-visit
$
Total fixed expense
36,100
–
165) Leist Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,170 client-visits. The clinic
has provided the following data concerning the formulas to be used in its budgeting:
Fixed element per
month
Variable
element per
client-visit
Revenue
–
$
50.80
Personnel expenses
$
26,600
$
15.60
Medical supplies
1,400
9.40
Occupancy expenses
7,600
2.40
Administrative expenses
5,300
0.10
Total expenses
$
40,900
$
27.50
The medical supplies in the flexible budget for September would be closest to:
A) $22,080
B) $21,798
C) $21,907
D) $21,313
166) Leist Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,170 client-visits. The clinic
has provided the following data concerning the formulas to be used in its budgeting:
Fixed element
per month
Variable element
per client-visit
Revenue
–
$
50.80
Personnel expenses
$
26,600
$
15.60
Medical supplies
1,400
9.40
Occupancy expenses
7,600
2.40
Administrative expenses
5,300
0.10
Total expenses
$
40,900
$
27.50
The occupancy expenses in the flexible budget for September would be closest to:
A) $13,215
B) $12,808
C) $13,583
D) $12,880
167) Leist Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 2,200 client-visits, but its actual level of activity was 2,170 client-visits. The clinic
has provided the following data concerning the formulas to be used in its budgeting:
Fixed element per
month
Variable
element per
client-visit
Revenue
–
$
50.80
Personnel expenses
$
26,600
$
15.60
Medical supplies
1,400
9.40
Occupancy expenses
7,600
2.40
Administrative expenses
5,300
0.10
Total expenses
$
40,900
$
27.50
The net operating income in the flexible budget for September would be closest to:
A) $9,661
B) $5,367
C) $5,516
D) $10,360
Revenue per client-visit
$
50.80
Total variable expense per client-visit
Contribution margin per client-visit
$
Total fixed expense
$
40,900
–
Schoening 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 and the actual results of operations for
January.
Fixed Element per
Month
Variable Element
per Container
Refurbished
Actual Total
for January
Revenue
$
4,100
$
158,600
Employee salaries and wages
$
50,600
$
1,100
$
92,700
Refurbishing materials
$
700
$
27,000
Other expenses
$
41,200
$
40,800
When the company prepared its planning budget at the beginning of January, it assumed that 40
containers would have been refurbished. However, 38 containers were actually refurbished
during January.
168) The amount shown for revenue in the planning budget for January would have been closest
to:
A) $158,600
B) $166,947
C) $164,000
D) $155,800
Containers refurbished (q)
Revenue ($4,100q)
–
169) The amount shown for “Employee salaries and wages” in the planning budget for January
would have been closest to:
A) $92,400
B) $94,600
C) $97,579
D) $92,700
170) The total expenses in the flexible budget for January would have been closest to:
A) $160,500
B) $160,200
C) $163,800
D) $168,947
171) The activity variance for “Refurbishing materials” for January would have been closest to:
A) $1,400 U
B) $1,000 F
C) $1,000 U
D) $1,400 F
172) The revenue variance in the Revenue and Spending Variances column of a report
comparing actual results to the flexible budget for January would have been closest to:
A) $5,400 U
B) $2,800 U
C) $5,400 F
D) $2,800 F
173) Dubberly Corporation’s cost formula for its manufacturing overhead is $30,600 per month
plus $64 per machine-hour. For the month of March, the company planned for activity of 7,900
machine-hours, but the actual level of activity was 7,880 machine-hours. The actual
manufacturing overhead for the month was $558,610.
The manufacturing overhead in the planning budget for March would be closest to:
A) $534,920
B) $558,610
C) $536,200
D) $560,028
174) Dubberly Corporation’s cost formula for its manufacturing overhead is $30,600 per month
plus $64 per machine-hour. For the month of March, the company planned for activity of 7,900
machine-hours, but the actual level of activity was 7,880 machine-hours. The actual
manufacturing overhead for the month was $558,610.
The manufacturing overhead in the flexible budget for March would be closest to:
A) $558,610
B) $536,200
C) $534,843
D) $534,920
175) Dubberly Corporation’s cost formula for its manufacturing overhead is $30,600 per month
plus $64 per machine-hour. For the month of March, the company planned for activity of 7,900
machine-hours, but the actual level of activity was 7,880 machine-hours. The actual
manufacturing overhead for the month was $558,610.
The activity variance for manufacturing overhead in March would be closest to:
A) $22,410 U
B) $22,410 F
C) $1,280 F
D) $1,280 U
176) Dubberly Corporation’s cost formula for its manufacturing overhead is $30,600 per month
plus $64 per machine-hour. For the month of March, the company planned for activity of 7,900
machine-hours, but the actual level of activity was 7,880 machine-hours. The actual
manufacturing overhead for the month was $558,610.
The spending variance for manufacturing overhead in March would be closest to:
A) $22,410 U
B) $22,410 F
C) $23,690 F
D) $23,690 U
177) Pratte Boat Wash’s cost formula for its cleaning equipment and supplies is $2,460 per
month plus $49 per boat. For the month of April, the company planned for activity of 58 boats,
but the actual level of activity was 18 boats. The actual cleaning equipment and supplies for the
month was $3,470.
The cleaning equipment and supplies in the planning budget for April would be closest to:
A) $3,342
B) $5,302
C) $3,470
D) $11,181
178) Pratte Boat Wash’s cost formula for its cleaning equipment and supplies is $2,460 per
month plus $49 per boat. For the month of April, the company planned for activity of 58 boats,
but the actual level of activity was 18 boats. The actual cleaning equipment and supplies for the
month was $3,470.
The cleaning equipment and supplies in the flexible budget for April would be closest to:
A) $3,342
B) $5,302
C) $3,470
D) $1,645
179) Pratte Boat Wash’s cost formula for its cleaning equipment and supplies is $2,460 per
month plus $49 per boat. For the month of April, the company planned for activity of 58 boats,
but the actual level of activity was 18 boats. The actual cleaning equipment and supplies for the
month was $3,470.
The activity variance for cleaning equipment and supplies in April would be closest to:
A) $1,960 F
B) $1,832 U
C) $1,832 F
D) $1,960 U
180) Pratte Boat Wash’s cost formula for its cleaning equipment and supplies is $2,460 per
month plus $49 per boat. For the month of April, the company planned for activity of 58 boats,
but the actual level of activity was 18 boats. The actual cleaning equipment and supplies for the
month was $3,470.
The spending variance for cleaning equipment and supplies in April would be closest to:
A) $1,832 U
B) $128 F
C) $128 U
D) $1,832 F
181) Stegemann 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 and the actual results of operations
for May.
Fixed Element per
Month
Variable Element
per Container
Refurbished
Actual Total
for May
Revenue
$
5,300
$
156,400
Employee salaries and wages
$
42,900
$
1,300
$
82,300
Refurbishing materials
$
500
$
15,100
Other expenses
$
42,900
$
41,900
–
When the company prepared its planning budget at the beginning of May, it assumed that 27
containers would have been refurbished. However, 29 containers were actually refurbished
during May.
The revenue in the company’s flexible budget for May would have been closest to:
A) $145,614
B) $153,700
C) $143,100
D) $156,400
Flexible
Containers refurbished (q)
Revenue ($5,300q)
153,700
–
182) Stegemann 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 and the actual results of operations
for May.
Fixed Element per
Month
Variable Element
per Container
Refurbished
Actual Total
for May
Revenue
$
5,300
$
156,400
Employee salaries and wages
$
42,900
$
1,300
$
82,300
Refurbishing materials
$
500
$
15,100
Other expenses
$
42,900
$
41,900
–
When the company prepared its planning budget at the beginning of May, it assumed that 27
containers would have been refurbished. However, 29 containers were actually refurbished
during May.
The spending variance for “Employee salaries and wages” for May would have been closest to:
A) $1,700 U
B) $4,300 U
C) $1,700 F
D) $4,300 F
Containers refurbished (q)
29
Employee salaries and wages
($42,900 + $1,300q)
$
82,300
$
1,700
U
–
183) Stegemann 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 and the actual results of operations
for May.
Fixed Element per
Month
Variable Element
per Container
Refurbished
Actual Total
for May
Revenue
$
5,300
$
156,400
Employee salaries and wages
$
42,900
$
1,300
$
82,300
Refurbishing materials
$
500
$
15,100
Other expenses
$
42,900
$
41,900
–
When the company prepared its planning budget at the beginning of May, it assumed that 27
containers would have been refurbished. However, 29 containers were actually refurbished
during May.
The amount shown for “Other expenses” in the planning budget for May would have been
closest to:
A) $42,900
B) $42,400
C) $41,900
D) $39,010
Containers refurbished (q)
Other expenses ($42,900 fixed)
–
184) Stegemann 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 and the actual results of operations
for May.
Fixed Element per
Month
Variable Element
per Container
Refurbished
Actual Total
for May
Revenue
$
5,300
$
156,400
Employee salaries and wages
$
42,900
$
1,300
$
82,300
Refurbishing materials
$
500
$
15,100
Other expenses
$
42,900
$
41,900
–
When the company prepared its planning budget at the beginning of May, it assumed that 27
containers would have been refurbished. However, 29 containers were actually refurbished
during May.
The activity variance for total expenses for May would have been closest to:
A) $3,600 F
B) $3,600 U
C) $4,900 U
D) $4,900 F
Budget
Budget
Containers refurbished (q)
Expenses:
Employee salaries and wages
($42,900 + $1,300q)
Refurbishing materials
($500q)
Other expenses ($42,900)
42,900
Total expenses
$
$
134,400
3,600
U
–
185) Dure Corporation’s cost formula for its selling and administrative expense is $24,500 per
month plus $1 per unit. For the month of July, the company planned for activity of 7,200 units,
but the actual level of activity was 7,160 units. The actual selling and administrative expense for
the month was $31,460.
The selling and administrative expense in the planning budget for July would be closest to:
A) $31,460
B) $31,660
C) $31,700
D) $31,636
186) Dure Corporation’s cost formula for its selling and administrative expense is $24,500 per
month plus $1 per unit. For the month of July, the company planned for activity of 7,200 units,
but the actual level of activity was 7,160 units. The actual selling and administrative expense for
the month was $31,460.
The selling and administrative expense in the flexible budget for July would be closest to:
A) $31,524
B) $31,460
C) $31,660
D) $31,700
187) Dure Corporation’s cost formula for its selling and administrative expense is $24,500 per
month plus $1 per unit. For the month of July, the company planned for activity of 7,200 units,
but the actual level of activity was 7,160 units. The actual selling and administrative expense for
the month was $31,460.
The activity variance for selling and administrative expense in July would be closest to:
A) $240 F
B) $40 F
C) $40 U
D) $240 U