Chapter 09 Flexible Budgets and Performance Analysis
Chapter 09 Flexible Budgets and Performance Analysis
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262. Tsui Clinic uses patient-visits as its measure of activity. During November, the clinic
budgeted for 3,400 patient-visits, but its actual level of activity was 2,900 patient-visits. The
clinic bases its budgets on the following information: Revenue should be $30.00 per patient-visit.
Personnel expenses should be $30,200 per month plus $7.70 per patient-visit. Medical supplies
should be $1,600 per month plus $5.20 per patient-visit. Occupancy expenses should be $7,400
per month plus $1.00 per patient-visit. Administrative expenses should be $3,900 per month plus
$0.20 per patient-visit. The clinic reported the following actual results for November:
Required:
Prepare the clinic’s flexible budget performance report 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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263. Dreyfus Memorial Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for April was based on 2,100 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 flexible budget performance report showing both the activity variances and the
spending variances for each of the expenses and for total expenses for April. 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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264. Akes Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for August was based on 2,200 meals. The diner’s director has
provided the following cost data to use in the budget: groceries, $3.65 per meal; kitchen
operations, $5,400 per month plus $1.85 per meal; administrative expenses, $2,900 per month
plus $0.55 per meal; and fundraising expenses, $1,700 per month. The director has also provided
the diner’s statement of actual expenses for the month:
Required:
Prepare a flexible budget performance report showing both the activity variances and 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
Chapter 09 Flexible Budgets and Performance Analysis
265. Blockmon Hospital bases its budgets on patient-visits. The hospital’s static planning budget
for November appears below:
Required:
Prepare a flexible budget for 8,600 patient-visits per month.
Chapter 09 Flexible Budgets and Performance Analysis
266. Clines Corporation bases its budgets on machine-hours. The company’s static planning
budget for November appears below:
Required:
Prepare a flexible budget for 9,800 machine-hours per month.
Chapter 09 Flexible Budgets and Performance Analysis
267. Meares Corporation bases its budgets on the activity measure customers served. During
May, the company plans to serve 27,000 customers. The company has provided the following
data concerning the formulas it uses in its budgeting:
Required:
Prepare the company’s planning budget for May.
Chapter 09 Flexible Budgets and Performance Analysis
268. During August, Diga Corporation plans to serve 35,000 customers. The company uses the
following revenue and cost formulas in its budgeting, where q is the number of customers
served:
Revenue: $4.20q
Wages and salaries: $33,700 + $1.50q
Supplies: $0.70q
Insurance: $11,000
Miscellaneous: $4,800 + $0.40q
Required:
Prepare the company’s planning budget for August.
Chapter 09 Flexible Budgets and Performance Analysis
269. During September, Kocab Corporation plans to serve 37,000 customers. Revenue is $2.80
per customer served. Wages and salaries are $33,300 per month plus $0.80 per customer served.
Supplies are $0.40 per customer served. Insurance is $9,000 per month. Miscellaneous expenses
are $5,300 per month plus $0.20 per customer served.
Required:
Prepare the company’s planning budget for September.
Chapter 09 Flexible Budgets and Performance Analysis
270. Vera Corporation bases its budgets on the activity measure customers served. During
September, the company planned to serve 28,000 customers, but actually served 27,000
customers. The company has provided the following data concerning the formulas it uses in its
budgeting:
Required:
Prepare the company’s flexible budget for September based on the actual level of activity for the
month.
Chapter 09 Flexible Budgets and Performance Analysis
271. During May, Hiles Corporation budgeted for 31,000 customers, but actually served 29,000
customers. The company uses the following revenue and cost formulas in its budgeting, where q
is the number of customers served:
Revenue: $4.40q
Wages and salaries: $35,800 + $1.70q
Supplies: $0.60q
Insurance: $12,300
Miscellaneous: $5,500 + $0.10q
Required:
Prepare the company’s flexible budget for May based on the actual level of activity for the
month.
Chapter 09 Flexible Budgets and Performance Analysis
272. During February, Poetker Corporation budgeted for 29,000 customers, but actually served
28,000 customers. Revenue should be $4.70 per customer served. Wages and salaries should be
$31,700 per month plus $1.50 per customer served. Supplies should be $0.80 per customer
served. Insurance should be $8,400 per month. Miscellaneous expenses should be $7,400 per
month plus $0.40 per customer served.
Required:
Prepare the company’s flexible budget for February based on the actual level of activity for the
month.
Chapter 09 Flexible Budgets and Performance Analysis
273. Mish Clinic bases its budgets on patient-visits. During November, the clinic plans for a
level of activity of 3,200 patient-visits. The clinic has provided the following data concerning the
formulas it uses in its budgeting:
Required:
Prepare the clinic’s planning budget for November.
Chapter 09 Flexible Budgets and Performance Analysis
274. During January, Agron Clinic plans for an activity level of 2,500 patient-visits. The clinic
uses the following revenue and cost formulas in its budgeting, where q is the number of patient-
visits:
Revenue: $51.50q
Personnel expenses: $33,800 + $16.60q
Medical supplies: $700 + $7.40q
Occupancy expenses: $10,900 + $2.10q
Administrative expenses: $4,300 + $0.40q
Required:
Prepare the clinic’s planning budget for January.
Chapter 09 Flexible Budgets and Performance Analysis
275. During March, Samorano Clinic plans for an activity level of 2,500 patient-visits. Revenue
is $42.10 per patient-visit. Personnel expenses are $30,400 per month plus $11.20 per patient-
visit. Medical supplies are $1,100 per month plus $6.50 per patient-visit. Occupancy expenses
are $6,500 per month plus $1.90 per patient-visit. Administrative expenses are $5,200 per month
plus $0.40 per patient-visit.
Required:
Prepare the clinic’s planning budget for March.
Chapter 09 Flexible Budgets and Performance Analysis
276. Moss Clinic bases its budgets on the activity measure patient-visits. During August, the
clinic planned for an activity level of 2,100 patient-visits, but the activity level was actually
2,400 patient-visits. The clinic has provided the following data concerning the formulas it uses in
its budgeting:
Required:
Prepare the clinic’s flexible budget for August based on the actual level of activity for the
month.
277. During August, Cardenas Clinic budgeted for 3,900 patient-visits, but its actual level of
activity was 3,800 patient-visits. The clinic uses the following revenue and cost formulas in its
budgeting, where q is the number of patient-visits:
Revenue: $27.80q
Personnel expenses: $25,100 + $7.80q
Medical supplies: $1,100 + $5.60q
Occupancy expenses: $7,900 + $1.20q
Administrative expenses: $3,200 + $0.10q
Required:
Prepare the clinic’s flexible budget for August based on the actual level of activity for the
month.