Chapter 09 Flexible Budgets and Performance Analysis
237. Zindell Corporation bases its budgets on the activity measure customers served. During
December, the company planned to serve 21,000 customers, but actually served 19,000
customers. The company uses the following revenue and cost formulas in its budgeting, where q
is the number of customers served:
Revenue: $3.60q
Wages and salaries: $21,300 + $1.10q
Supplies: $0.70q
Insurance: $6,400
Miscellaneous: $3,200 + $0.20q
Required:
Prepare a report showing the company’s activity variances for December. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
Chapter 09 Flexible Budgets and Performance Analysis
238. Brandewie Corporation bases its budgets on the activity measure customers served. During
May, the company planned to serve 38,000 customers, but actually served 33,000 customers.
Revenue is $2.80 per customer served. Wages and salaries are $28,800 per month plus $0.80 per
customer served. Supplies are $0.50 per customer served. Insurance is $6,800 per month.
Miscellaneous expenses are $5,800 per month plus $0.30 per customer served.
Required:
Prepare a report showing the company’s activity variances for May. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
Chapter 09 Flexible Budgets and Performance Analysis
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239. Chapnick Clinic bases its budgets on the activity measure patient-visits. During September,
the clinic planned for 2,800 patient-visits. The clinic has provided the following data concerning
the formulas it uses in its budgeting:
The clinic has also furnished its income statement for September:
Required:
Prepare a report showing the clinic’s activity variances for September.
Chapter 09 Flexible Budgets and Performance Analysis
Chapter 09 Flexible Budgets and Performance Analysis
240. Filkins Clinic bases its budgets on the activity measure patient-visits. During February, the
clinic planned for 3,900 patient-visits, but the actual level of activity was 4,100 patient-visits.
The clinic has provided the following data concerning the formulas it uses in its budgeting:
Required:
Prepare a report showing the clinic’s activity variances for February. Indicate in each case
whether the variance is favorable (F) or unfavorable (U).
Chapter 09 Flexible Budgets and Performance Analysis
241. Sroufe Clinic bases its budgets on the activity measure patient-visits. During July, the clinic
planned for 3,500 patient-visits, but its actual level of activity was 4,000 patient-visits. The clinic
has provided the following data concerning the formulas it uses in its budgeting:
Required:
Prepare a report showing the clinic’s activity variances for July. Indicate in each case whether the
variance is favorable (F) or unfavorable (U).
Chapter 09 Flexible Budgets and Performance Analysis
242. Fongeallaz Clinic bases its budgets on the activity measure patient-visits. During January,
the clinic planned for 2,300 patient-visits, but its actual level of activity was 2,100 patient-visits.
Revenue should be $52.50 per patient-visit. Personnel expenses should be $34,100 per month
plus $15.10 per patient-visit. Medical supplies should be $1,600 per month plus $8.40 per
patient-visit. Occupancy expenses should be $9,400 per month plus $1.90 per patient-visit.
Administrative expenses should be $3,500 per month plus $0.10 per patient-visit.
Required:
Prepare a report showing the clinic’s activity variances for January. Indicate in each case whether
the variance is favorable (F) or unfavorable (U).
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243. Socha Memorial Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for January was based on 3,400 meals, but the diner actually served
3,800 meals. The diner’s director has provided the following cost formulas to use in budgets:
The director has also provided the diner’s statement of actual expenses for the month:
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses
for January. Label each variance as favorable (F) or unfavorable (U).
Chapter 09 Flexible Budgets and Performance Analysis
Chapter 09 Flexible Budgets and Performance Analysis
244. Mable Memorial Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for April was based on 3,000 meals, but the diner actually served
3,100 meals. The diner’s director has provided the following cost formulas to use in budgets:
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses
for April. Label each variance as favorable (F) or unfavorable (U).
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245. Zuehlke Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for September was based on 2,800 meals, but the diner actually
served 3,000 meals. The diner’s director has provided the following cost data to use in the
budget: groceries, $3.85 per meal; kitchen operations, $4,500 per month plus $1.65 per meal;
administrative expenses, $3,300 per month plus $0.30 per meal; and fundraising expenses,
$1,200 per month. The director has also provided the diner’s statement of actual expenses for the
month:
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses
for September.
Chapter 09 Flexible Budgets and Performance Analysis
246. Aubuchon Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for March was based on 3,400 meals, but the diner actually served
3,100 meals. The diner’s director has provided the following cost data to use in the budget:
groceries, $2.90 per meal; kitchen operations, $4,900 per month plus $1.05 per meal;
administrative expenses, $3,600 per month plus $0.25 per meal; and fundraising expenses,
$1,700 per month.
Required:
Prepare a report showing the activity variances for each of the expenses and for total expenses
for March. Label each variance as favorable (F) or unfavorable (U).
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247. Crovo Corporation uses customers served as its measure of activity. During December, the
company budgeted for 38,000 customers, but actually served 40,000 customers. The company
has provided the following data concerning the formulas used in its budgeting and its actual
results for December:
Data used in budgeting:
Actual results for December:
Required:
Prepare a report showing the company’s revenue and spending variances for December. Label
each variance as favorable (F) or unfavorable (U).
Chapter 09 Flexible Budgets and Performance Analysis
Chapter 09 Flexible Budgets and Performance Analysis
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248. Hertzler Corporation uses customers served as its measure of activity. During November,
the company budgeted for 33,000 customers, but actually served 34,000 customers. The
company uses the following revenue and cost formulas in its budgeting, where q is the number of
customers served:
Revenue: $3.20q
Wages and salaries: $26,600 + $1.20q
Supplies: $0.40q
Insurance: $7,900
Miscellaneous: $6,400 + $0.10q
The company reported the following actual results for November:
Required:
Prepare a report showing the company’s revenue and spending variances for November. Label
each variance as favorable (F) or unfavorable (U).
Chapter 09 Flexible Budgets and Performance Analysis
Chapter 09 Flexible Budgets and Performance Analysis
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249. Wartenberg Corporation uses customers served as its measure of activity. The company
bases its budgets on the following information: Revenue should be $3.80 per customer served.
Wages and salaries should be $38,800 per month plus $1.00 per customer served. Supplies
should be $0.60 per customer served. Insurance should be $7,100 per month. Miscellaneous
expenses should be $5,100 per month plus $0.30 per customer served.
The company reported the following actual results for January:
Required:
Prepare a report showing the company’s revenue and spending variances for January. Label each
variance as favorable (F) or unfavorable (U).
Chapter 09 Flexible Budgets and Performance Analysis
Chapter 09 Flexible Budgets and Performance Analysis
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250. Carlisle Clinic uses patient-visits as its measure of activity. During December, the clinic
budgeted for 2,500 patient-visits, but its actual level of activity was 2,100 patient-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:
Actual results for December:
Required:
Prepare a report showing the clinic’s revenue and spending variances for December. Label each
variance as favorable (F) or unfavorable (U).
Chapter 09 Flexible Budgets and Performance Analysis