Malander 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 November, the kennel budgeted for 3,400
tenant-days, but its actual level of activity was 3,390 tenant-days. The kennel has provided the
following data concerning the formulas used in its budgeting and its actual results for November:
Data used in budgeting:
Fixed element
per month
Variable element
per tenant-day
Revenue
–
$
28.00
Wages and salaries
$
2,700
$
5.40
Food and supplies
500
10.20
Facility expenses
9,600
3.30
Administrative expenses
6,600
0.20
Total expenses
$
19,400
$
19.10
Actual results for November:
$
90,470
$
20,606
$
35,838
$
20,857
$
7,518
–
222) The wages and salaries in the planning budget for November would be closest to:
A) $21,006
B) $20,667
C) $20,606
D) $21,060
223) The food and supplies in the flexible budget for November would be closest to:
A) $35,180
B) $35,078
C) $35,944
D) $35,733
224) The activity variance for wages and salaries in November would be closest to:
A) $454 F
B) $454 U
C) $54 F
D) $54 U
225) The revenue variance for November would be closest to:
A) $4,450 F
B) $4,730 U
C) $4,730 F
D) $4,450 U
226) The spending variance for food and supplies in November would be closest to:
A) $760 F
B) $658 U
C) $760 U
D) $658 F
227) Gordin 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 3,000 tenant-days, but
its actual level of activity was 3,020 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
–
$
27.60
Wages and salaries
$
2,000
$
5.20
Food and supplies
800
10.20
Facility expenses
8,500
3.70
Administrative expenses
6,000
0.10
Total expenses
$
17,300
$
19.20
Actual results for May:
$
86,322
$
17,984
$
32,444
$
19,554
$
6,162
The administrative expenses in the planning budget for May would be closest to:
A) $6,300
B) $6,302
C) $6,121
D) $6,162
228) Gordin 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 3,000 tenant-days, but
its actual level of activity was 3,020 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
–
$
27.60
Wages and salaries
$
2,000
$
5.20
Food and supplies
800
10.20
Facility expenses
8,500
3.70
Administrative expenses
6,000
0.10
Total expenses
$
17,300
$
19.20
Actual results for May:
$
86,322
$
17,984
$
32,444
$
19,554
$
6,162
The facility expenses in the flexible budget for May would be closest to:
A) $19,425
B) $19,600
C) $19,674
D) $19,684
229) Gordin 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 3,000 tenant-days, but
its actual level of activity was 3,020 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
–
$
27.60
Wages and salaries
$
2,000
$
5.20
Food and supplies
800
10.20
Facility expenses
8,500
3.70
Administrative expenses
6,000
0.10
Total expenses
$
17,300
$
19.20
Actual results for May:
$
86,322
$
17,984
$
32,444
$
19,554
$
6,162
The activity variance for administrative expenses in May would be closest to:
A) $2 F
B) $2 U
C) $138 U
D) $138 F
Flexible budget [$6,000 + ($0.10 × 3,020)]
$
6,302
Planning budget [$6,000 + ($0.10 × 3,000)]
6,300
Activity variance
$
208
230) Gordin 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 3,000 tenant-days, but
its actual level of activity was 3,020 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
–
$
27.60
Wages and salaries
$
2,000
$
5.20
Food and supplies
800
10.20
Facility expenses
8,500
3.70
Administrative expenses
6,000
0.10
Total expenses
$
17,300
$
19.20
–
Actual results for May:
$
86,322
$
17,984
$
32,444
$
19,554
$
6,162
–
The spending variance for food and supplies in May would be closest to:
A) $840 U
B) $840 F
C) $1,044 F
D) $1,044 U
231) Paulis 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 February, the kennel budgeted for 2,500 tenant-days,
but its actual level of activity was 2,480 tenant-days. The kennel has provided the following data
concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Fixed element
per month
Variable element
per tenant-day
Revenue
–
$
35.30
Wages and salaries
$
2,500
$
5.90
Food and supplies
400
13.80
Facility expenses
8,900
3.40
Administrative expenses
7,800
0.40
Total expenses
$
19,600
$
23.50
Actual results for February:
$
85,654
$
16,992
$
33,084
$
16,682
$
8,732
The net operating income in the planning budget for February would be closest to:
A) $9,664
B) $10,246
C) $10,083
D) $9,900
Revenue per tenant-day
$
35.30
Total variable expense per tenant-day
23.50
Contribution margin per tenant-day
$
11.80
Total fixed expense
$
19,600
232) Paulis 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 February, the kennel budgeted for 2,500 tenant-days,
but its actual level of activity was 2,480 tenant-days. The kennel has provided the following data
concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Fixed element
per month
Variable element
per tenant-day
Revenue
–
$
35.30
Wages and salaries
$
2,500
$
5.90
Food and supplies
400
13.80
Facility expenses
8,900
3.40
Administrative expenses
7,800
0.40
Total expenses
$
19,600
$
23.50
Actual results for February:
$
85,654
$
16,992
$
33,084
$
16,682
$
8,732
The net operating income in the flexible budget for February would be closest to:
A) $9,900
B) $10,083
C) $9,664
D) $10,246
Revenue per tenant-day
$
35.30
Total variable expense per tenant-day
23.50
Contribution margin per tenant-day
$
11.80
Total fixed expense
$
19,600
212
233) Paulis 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 February, the kennel budgeted for 2,500 tenant-days,
but its actual level of activity was 2,480 tenant-days. The kennel has provided the following data
concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Fixed element
per month
Variable element
per tenant-day
Revenue
–
$
35.30
Wages and salaries
$
2,500
$
5.90
Food and supplies
400
13.80
Facility expenses
8,900
3.40
Administrative expenses
7,800
0.40
Total expenses
$
19,600
$
23.50
–
Actual results for February:
$
85,654
$
16,992
$
33,084
$
16,682
$
8,732
–
The activity variance for net operating income in February would be closest to:
A) $264 F
B) $264 U
C) $236 F
D) $236 U
214
234) Paulis 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 February, the kennel budgeted for 2,500 tenant-days,
but its actual level of activity was 2,480 tenant-days. The kennel has provided the following data
concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Fixed element
per month
Variable element
per tenant-day
Revenue
–
$
35.30
Wages and salaries
$
2,500
$
5.90
Food and supplies
400
13.80
Facility expenses
8,900
3.40
Administrative expenses
7,800
0.40
Total expenses
$
19,600
$
23.50
–
Actual results for February:
$
85,654
$
16,992
$
33,084
$
16,682
$
8,732
–
The overall revenue and spending variance (i.e., the variance for net operating income in the
revenue and spending variance column on the flexible budget performance report) for February
would be closest to:
A) $500 F
B) $500 U
C) $264 F
D) $264 U
216
235) Trevorrow Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During June, the company
budgeted for 6,200 units, but its actual level of activity was 6,160 units. The company 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 unit
Revenue
–
$
27.80
Direct labor
$
0
$
3.10
Direct materials
0
10.20
Manufacturing overhead
37,200
1.10
Selling and administrative expenses
22,800
0.30
Total expenses
$
60,000
$
14.70
–
Actual results for June:
Revenue
$
178,318
Direct labor
$
18,606
Direct materials
$
60,652
Manufacturing overhead
$
43,896
Selling and administrative expenses
$
24,688
–
The net operating income in the planning budget for June would be closest to:
A) $21,220
B) $20,696
C) $30,674
D) $30,279
218
236) Trevorrow Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During June, the company
budgeted for 6,200 units, but its actual level of activity was 6,160 units. The company 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 unit
Revenue
–
$
27.80
Direct labor
$
0
$
3.10
Direct materials
0
10.20
Manufacturing overhead
37,200
1.10
Selling and administrative expenses
22,800
0.30
Total expenses
$
60,000
$
14.70
–
Actual results for June:
Revenue
$
178,318
Direct labor
$
18,606
Direct materials
$
60,652
Manufacturing overhead
$
43,896
Selling and administrative expenses
$
24,688
–
The net operating income in the flexible budget for June would be closest to:
A) $20,696
B) $30,279
C) $30,674
D) $21,220
220
237) Trevorrow Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During June, the company
budgeted for 6,200 units, but its actual level of activity was 6,160 units. The company 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 unit
Revenue
–
$
27.80
Direct labor
$
0
$
3.10
Direct materials
0
10.20
Manufacturing overhead
37,200
1.10
Selling and administrative expenses
22,800
0.30
Total expenses
$
60,000
$
14.70
–
Actual results for June:
Revenue
$
178,318
Direct labor
$
18,606
Direct materials
$
60,652
Manufacturing overhead
$
43,896
Selling and administrative expenses
$
24,688
–
The activity variance for net operating income in June would be closest to:
A) $524 F
B) $524 U
C) $9,256 U
D) $9,256 F