Chapter 9 11 November required prepare The Clinics Flexible Budget Performance Report

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Chapter 09 Flexible Budgets and Performance Analysis

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251. Stailey Clinic uses patient-visits as its measure of activity. During September, the clinic

budgeted for 3,200 patient-visits, but its actual level of activity was 2,800 patient-visits. The

clinic uses the following revenue and cost formulas in its budgeting, where q is the number of

patient-visits:

Revenue: $34.90q

Personnel expenses: $27,300 + $10.30q

Medical supplies: $1,400 + $6.50q

Occupancy expenses: $6,000 + $1.80q

Administrative expenses: $5,300 + $0.40q

The clinic reported the following actual results for September:

Required:

Prepare a report showing the clinic’s revenue and spending variances for September. Label each

variance as favorable (F) or unfavorable (U).

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252. Glassey Clinic uses patient-visits as its measure of activity. The clinic bases its budgets on

the following information: Revenue should be $41.80 per patient-visit. Personnel expenses

should be $35,400 per month plus $10.60 per patient-visit. Medical supplies should be $700 per

month plus $7.90 per patient-visit. Occupancy expenses should be $8,800 per month plus $1.30

per patient-visit. Administrative expenses should be $5,600 per month plus $0.40 per patient-

visit.

The clinic reported the following actual results for February:

Required:

Prepare a report showing the clinic’s revenue and spending variances for February. Label each

variance as favorable (F) or unfavorable (U).

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253. Pinion Memorial Diner is a charity supported by donations that provides free meals to the

homeless. The diner’s budget for August was based on 2,700 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 spending variances for each of the expenses and for total expenses

for August. Label each variance as favorable (F) or unfavorable (U).

Chapter 09 Flexible Budgets and Performance Analysis

254. Hernande Urban Diner is a charity supported by donations that provides free meals to the

homeless. The diner’s budget for October was based on 2,800 meals. The diner’s director has

provided the following cost data to use in the budget: groceries, $2.45 per meal; kitchen

operations, $5,200 per month plus $1.70 per meal; administrative expenses, $2,600 per month

plus $0.65 per meal; and fundraising expenses, $1,100 per month. The director has also provided

the diner’s statement of actual expenses for the month:

Required:

Prepare a report showing the diner’s spending variances for each of the expenses and for total

expenses for October. Label each variance as favorable (F) or unfavorable (U).

Chapter 09 Flexible Budgets and Performance Analysis

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255. Tajiri Corporation uses customers served as its measure of activity. The following report

compares the planning budget to the actual operating results for the month of May:

Required:

Prepare the company’s flexible budget performance report for May. Label each variance as

favorable (F) or unfavorable (U).

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256. Sammartino Clinic uses patient-visits as its measure of activity. The following report

compares the planning budget to the actual operating results for the month of November:

Required:

Prepare the clinic’s flexible budget performance report for November. Label each variance as

favorable (F) or unfavorable (U).

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257. Hemphill Corporation uses customers served as its measure of activity. During June, the

company budgeted for 20,000 customers, but actually served 19,000 customers. The company

has provided the following data concerning the formulas used in its budgeting and its actual

results for June:

Data used in budgeting:

Actual results for June:

Required:

Prepare the company’s flexible budget performance report for June. Label each variance as

favorable (F) or unfavorable (U).

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258. Vieyra Corporation uses customers served as its measure of activity. During November, the

company budgeted for 36,000 customers, but actually served 39,000 customers. The company

uses the following revenue and cost formulas in its budgeting, where q is the number of

customers served:

Revenue: $2.50q

Wages and salaries: $21,500 + $0.70q

Supplies: $0.40q

Insurance: $6,100

Miscellaneous: $3,700 + $0.40q

The company reported the following actual results for November:

Required:

Prepare the company’s flexible budget performance report for November. Label each variance as

favorable (F) or unfavorable (U).

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259. Schoeppner Corporation uses customers served as its measure of activity. During October,

the company budgeted for 39,000 customers, but actually served 42,000 customers. The

company bases its budgets on the following information: Revenue should be $3.10 per customer

served. Wages and salaries should be $38,100 per month plus $0.80 per customer served.

Supplies should be $0.40 per customer served. Insurance should be $9,600 per month.

Miscellaneous expenses should be $3,400 per month plus $0.40 per customer served. The

company reported the following actual results for October:

Required:

Prepare the company’s flexible budget performance report for October. Label each variance as

favorable (F) or unfavorable (U).

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260. Adeyemo Clinic uses patient-visits as its measure of activity. During July, the clinic

budgeted for 2,500 patient-visits, but its actual level of activity was 2,800 patient-visits. The

clinic has provided the following data concerning the formulas used in its budgeting and its

actual results for July:

Data used in budgeting:

Actual results for July:

Required:

Prepare the clinic’s flexible budget performance report for July. Label each variance as favorable

(F) or unfavorable (U).

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261. Cayouette Clinic uses patient-visits as its measure of activity. During February, the clinic

budgeted for 2,400 patient-visits, but its actual level of activity was 2,700 patient-visits. The

clinic uses the following revenue and cost formulas in its budgeting, where q is the number of

patient-visits:

Revenue: $53.80q

Personnel expenses: $32,000 + $16.60q

Medical supplies: $700 + $8.80q

Occupancy expenses: $10,400 + $1.90q

Administrative expenses: $5,500 + $0.20q

The clinic reported the following actual results for February:

Required:

Prepare the clinic’s flexible budget performance report for February. Label each variance as

favorable (F) or unfavorable (U).