83) Herrod Catering uses two measures of activity, jobs and meals, in the cost formulas in its
budgets and performance reports. The cost formula for catering supplies is $570 per month plus
$98 per job plus $24 per meal. A typical job involves serving a number of meals to guests at a
corporate function or at a host’s home. The company expected its activity in December to be 11
jobs and 98 meals, but the actual activity was 14 jobs and 102 meals. The actual cost for catering
supplies in December was $4,500. The spending variance for catering supplies in December would
be closest to:
A) $110 F
B) $110 U
C) $500 F
D) $500 U
84) Bluemel Air uses two measures of activity, flights and passengers, in the cost formulas in its
budgets and performance reports. The cost formula for plane operating costs is $43,670 per month
plus $2,879 per flight plus $10 per passenger. The company expected its activity in December to
be 85 flights and 281 passengers, but the actual activity was 90 flights and 278 passengers. The
actual cost for plane operating costs in December was $314,740. The plane operating costs in the
flexible budget for December would be closest to:
A) $308,324
B) $314,740
C) $291,195
D) $305,560
85) Canniff Air uses two measures of activity, flights and passengers, in the cost formulas in its
budgets and performance reports. The cost formula for plane operating costs is $56,560 per month
plus $2,618 per flight plus $5 per passenger. The company expected its activity in February to be
63 flights and 254 passengers, but the actual activity was 62 flights and 255 passengers. The actual
cost for plane operating costs in February was $218,820. The plane operating costs in the planning
budget for February would be closest to:
A) $222,764
B) $222,349
C) $220,151
D) $218,820
86) Knapper 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 2,700 tenant-days,
but its actual level of activity was 2,740 tenant-days. The kennel has provided the following data
concerning the formulas to be used in its budgeting:
Fixed Element
per Month
Revenue
–
$
37.00
Wages and salaries
$
3,800
$
6.10
Food and supplies
900
14.90
Facility expenses
9,700
4.80
Administrative expenses
6,600
0.10
Total expenses
$
21,000
$
25.90
–
The food and supplies in the flexible budget for January would be closest to:
A) $41,726
B) $42,243
C) $41,018
D) $41,130
87) Knapper 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 2,700 tenant-days,
but its actual level of activity was 2,740 tenant-days. The kennel has provided the following data
concerning the formulas to be used in its budgeting:
Fixed Element
per Month
Revenue
–
$
37.00
Wages and salaries
$
3,800
$
6.10
Food and supplies
900
14.90
Facility expenses
9,700
4.80
Administrative expenses
6,600
0.10
Total expenses
$
21,000
$
25.90
–
The facility expenses in the flexible budget for January would be closest to:
A) $22,660
B) $21,996
C) $22,653
D) $22,852
88) Knapper 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 2,700 tenant-days,
but its actual level of activity was 2,740 tenant-days. The kennel has provided the following data
concerning the formulas to be used in its budgeting:
Fixed Element
per Month
Revenue
–
$
37.00
Wages and salaries
$
3,800
$
6.10
Food and supplies
900
14.90
Facility expenses
9,700
4.80
Administrative expenses
6,600
0.10
Total expenses
$
21,000
$
25.90
–
The net operating income in the flexible budget for January would be closest to:
A) $9,414
B) $8,350
C) $8,600
D) $8,970
Revenue per tenant-day
$
Total variable expense per tenant-day
Contribution margin per tenant-day
$
Total fixed expense
$
21,000
–
89) Witten Corporation is a service company that measures its output by the number of customers
served. The company has provided the following fixed and variable cost estimates that it uses for
budgeting purposes.
Fixed Element per
Month
Variable Element
per Customer
Served
Revenue
$
6,600
Employee salaries and wages
$
55,100
$
1,000
Travel expenses
$
600
Other expenses
$
43,100
–
A total of 27 customers were actually served during January.
The revenue in the company’s flexible budget for January would have been closest to:
A) $178,200
B) $180,900
C) $147,400
D) $145,200
Customers served (q)
Revenue ($6,600q)
$
–
90) Witten Corporation is a service company that measures its output by the number of customers
served. The company has provided the following fixed and variable cost estimates that it uses for
budgeting purposes.
Fixed Element per
Month
Variable Element
per Customer
Served
Revenue
$
6,600
Employee salaries and wages
$
55,100
$
1,000
Travel expenses
$
600
Other expenses
$
43,100
–
A total of 27 customers were actually served during January.
The “Employee salaries and wages” in the flexible budget for January would have been closest to:
A) $77,100
B) $65,348
C) $80,200
D) $82,100
Customers served (q)
Employee salaries and wages ($55,100 + $1,000q)
82,100
–
91) Witten Corporation is a service company that measures its output by the number of customers
served. The company has provided the following fixed and variable cost estimates that it uses for
budgeting purposes.
Fixed Element
per Month
Variable Element
per Customer
Served
Revenue
$
6,600
Employee salaries and wages
$
55,100
$
1,000
Travel expenses
$
600
Other expenses
$
43,100
–
A total of 27 customers were actually served during January.
The “Travel expenses” in the flexible budget for January would have been closest to:
A) $13,200
B) $16,200
C) $13,444
D) $16,500
Customers served (q)
Travel expenses ($600q)
16,200
–
92) Witten Corporation is a service company that measures its output by the number of customers
served. The company has provided the following fixed and variable cost estimates that it uses for
budgeting purposes.
Fixed Element per
Month
Variable Element
per Customer
Served
Revenue
$
6,600
Employee salaries and wages
$
55,100
$
1,000
Travel expenses
$
600
Other expenses
$
43,100
–
A total of 27 customers were actually served during January.
The “Other expenses” in the flexible budget for January would have been closest to:
A) $42,900
B) $52,650
C) $43,100
D) $34,956
Customers served (q)
Other expenses ($43,100 fixed)
43,100
–
93) Witten Corporation is a service company that measures its output by the number of customers
served. The company has provided the following fixed and variable cost estimates that it uses for
budgeting purposes.
Fixed Element per
Month
Variable Element
per Customer
Served
Revenue
$
6,600
Employee salaries and wages
$
55,100
$
1,000
Travel expenses
$
600
Other expenses
$
43,100
–
A total of 27 customers were actually servedduring January.
The total expenses in the flexible budget for Januarywould have been closest to:
A) $113,748
B) $133,400
C) $141,400
D) $139,600
Customers served (q)
Expenses:
Employee salaries and wages ($55,100 + $1,000q)
82,100
Travel expenses ($600q)
16,200
Other expenses ($43,100)
43,100
Total expenses
–
94) Kawamura 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 2,300
tenant-days, but its actual level of activity was 2,320 tenant-days. The kennel has provided the
following data concerning the formulas to be used in its budgeting:
Fixed Element
per Month
Revenue
–
$
37.70
Wages and salaries
$
3,000
$
6.10
Food and supplies
800
13.40
Facility expenses
9,800
4.70
Administrative expenses
7,100
0.20
Total expenses
$
20,700
$
24.40
–
The wages and salaries in the planning budget for December would be closest to:
A) $17,787
B) $17,942
C) $17,152
D) $17,030
95) Kawamura 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 2,300
tenant-days, but its actual level of activity was 2,320 tenant-days. The kennel has provided the
following data concerning the formulas to be used in its budgeting:
Fixed Element
per Month
Revenue
–
$
37.70
Wages and salaries
$
3,000
$
6.10
Food and supplies
800
13.40
Facility expenses
9,800
4.70
Administrative expenses
7,100
0.20
Total expenses
$
20,700
$
24.40
–
The administrative expenses in the planning budget for December would be closest to:
A) $7,754
B) $7,560
C) $7,564
D) $7,687
96) Kawamura 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 2,300
tenant-days, but its actual level of activity was 2,320 tenant-days. The kennel has provided the
following data concerning the formulas to be used in its budgeting:
Fixed Element
per Month
Revenue
–
$
37.70
Wages and salaries
$
3,000
$
6.10
Food and supplies
800
13.40
Facility expenses
9,800
4.70
Administrative expenses
7,100
0.20
Total expenses
$
20,700
$
24.40
–
The net operating income in the planning budget for December would be closest to:
A) $10,156
B) $9,890
C) $7,309
D) $7,184
Revenue per tenant-day
$
Total variable expense per tenant-day
Contribution margin per tenant-day
$
Total fixed expense
$
20,700
–
97) Sunn Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During November, the company
budgeted for 6,100 units, but its actual level of activity was 6,050 units. The company has provided
the following data concerning the formulas to be used in its budgeting:
Fixed Element
per Month
Revenue
–
$
33.70
Direct labor
$
0
$
5.90
Direct materials
0
10.90
Manufacturing overhead
48,400
1.20
Selling and administrative expenses
24,800
0.50
Total expenses
$
73,200
$
18.50
–
The direct materials in the flexible budget for November would be closest to:
A) $65,945
B) $67,720
C) $66,614
D) $66,490
98) Sunn Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During November, the company
budgeted for 6,100 units, but its actual level of activity was 6,050 units. The company has provided
the following data concerning the formulas to be used in its budgeting:
Fixed Element
per Month
Revenue
–
$
33.70
Direct labor
$
0
$
5.90
Direct materials
0
10.90
Manufacturing overhead
48,400
1.20
Selling and administrative expenses
24,800
0.50
Total expenses
$
73,200
$
18.50
–
The manufacturing overhead in the flexible budget for November would be closest to:
A) $55,511
B) $56,433
C) $55,720
D) $55,660
99) Sunn Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During November, the company
budgeted for 6,100 units, but its actual level of activity was 6,050 units. The company has provided
the following data concerning the formulas to be used in its budgeting:
Fixed Element
per Month
Revenue
–
$
33.70
Direct labor
$
0
$
5.90
Direct materials
0
10.90
Manufacturing overhead
48,400
1.20
Selling and administrative expenses
24,800
0.50
Total expenses
$
73,200
$
18.50
–
The net operating income in the flexible budget for November would be closest to:
A) $16,494
B) $19,520
C) $18,760
D) $16,767
Revenue per unit
$
Total variable expense per unit
Contribution margin per unit
$
Total fixed expense
$
73,200
–
100) Tomlison Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During October, the company budgeted
for 5,100 units, but its actual level of activity was 5,150 units. The company has provided the
following data concerning the formulas to be used in its budgeting:
Fixed Element
per Month
Revenue
–
$
42.40
Direct labor
$
0
$
7.70
Direct materials
0
15.40
Manufacturing overhead
46,800
1.20
Selling and administrative expenses
21,000
0.40
Total expenses
$
67,800
$
24.70
–
The selling and administrative expenses in the planning budget for October would be closest to:
A) $23,330
B) $23,103
C) $23,060
D) $23,040
101) Tomlison Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During October, the company budgeted
for 5,100 units, but its actual level of activity was 5,150 units. The company has provided the
following data concerning the formulas to be used in its budgeting:
Fixed Element
per Month
Revenue
–
$
42.40
Direct labor
$
0
$
7.70
Direct materials
0
15.40
Manufacturing overhead
46,800
1.20
Selling and administrative expenses
21,000
0.40
Total expenses
$
67,800
$
24.70
–
The net operating income in the planning budget for October would be closest to:
A) $22,470
B) $23,355
C) $28,108
D) $27,565
Revenue per unit
$
Total variable expense per unit
Contribution margin per unit
$
Total fixed expense
$
67,800
–
102) Tomlison Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During October, the company budgeted
for 5,100 units, but its actual level of activity was 5,150 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
–
$
42.40
Direct labor
$
0
$
7.70
Direct materials
0
15.40
Manufacturing overhead
46,800
1.20
Selling and administrative expenses
21,000
0.40
Total expenses
$
67,800
$
24.70
–
The direct materials in the flexible budget for October would be closest to:
A) $79,310
B) $78,540
C) $79,239
D) $77,708
103) 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 wages and salaries in the planning budget for January would be closest to:
A) $17,282
B) $17,618
C) $17,420
D) $17,132