Chapter 09 Flexible Budgets and Performance Analysis
278. During October, Keliihoomalu Clinic budgeted for 2,700 patient-visits, but its actual level
of activity was 2,200 patient-visits. Revenue should be $27.30 per patient-visit. Personnel
expenses should be $21,100 per month plus $6.80 per patient-visit. Medical supplies should be
$500 per month plus $4.90 per patient-visit. Occupancy expenses should be $5,700 per month
plus $0.90 per patient-visit. Administrative expenses should be $3,700 per month plus $0.40 per
patient-visit.
Required:
Prepare the clinic’s flexible budget for October based on the actual level of activity for the
month.
Chapter 09 Flexible Budgets and Performance Analysis
279. Poch Memorial Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for September is to be based on 2,700 meals. The diner’s director
has provided the following cost formulas to use in the budget:
Required:
Prepare the diner’s budget for the month of September. The budget will only contain the costs
listed above; no revenues will be on the budget.
Chapter 09 Flexible Budgets and Performance Analysis
280. Barona Memorial Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for March was based on 2,900 meals, but the diner actually served
3,000 meals. The diner’s director has provided the following cost formulas to use in budgets:
Required:
Prepare the diner’s flexible budget for the actual number of meals served in March. The budget
will only contain the costs listed above; no revenues will be on the budget.
Chapter 09 Flexible Budgets and Performance Analysis
281. Hilario Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for September is to be based on 2,600 meals. The diner’s director
has provided the following cost data to use in the budget: groceries, $2.10 per meal; kitchen
operations, $5,600 per month plus $1.80 per meal; administrative expenses, $3,700 per month
plus $0.55 per meal; and fundraising expenses, $1,400 per month.
Required:
Prepare the diner’s budget for the month of September. The budget will only contain the costs
listed above; no revenues will be on the budget.
Chapter 09 Flexible Budgets and Performance Analysis
282. Marchant Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for June was based on 2,200 meals, but the diner actually served
1,800 meals. The diner’s director has provided the following cost data to use in the budget:
groceries, $3.85 per meal; kitchen operations, $4,300 per month plus $1.70 per meal;
administrative expenses, $2,000 per month plus $0.45 per meal; and fundraising expenses,
$1,100 per month.
Required:
Prepare the diner’s flexible budget for the actual number of meals served in June. The budget will
only contain the costs listed above; no revenues will be on the budget.
Chapter 09 Flexible Budgets and Performance Analysis
9-252
283. Carnes Tech is a for-profit vocational school. The school bases its budgets on two measures
of activity (i.e., cost drivers), namely student and course. The school uses the following data in
its budgeting:
In February, the school budgeted for 1,570 students and 143 courses. The actual activity for the
month was 1,370 students and 145 courses.
Required:
Prepare a report showing the school’s activity variances for February. Label each variance as
favorable (F) or unfavorable (U).
Chapter 09 Flexible Budgets and Performance Analysis
Chapter 09 Flexible Budgets and Performance Analysis
9-254
284. Heitkamp Tech is a for-profit vocational school. The school bases its budgets on two
measures of activity (i.e., cost drivers), namely student and course. The school uses the following
data in its budgeting:
In July, the school budgeted for 1,530 students and 58 courses. The school’s income statement
showing the actual results for the month appears below:
Required:
Prepare a report showing the school’s activity variances for July. Label each variance as
favorable (F) or unfavorable (U).
Chapter 09 Flexible Budgets and Performance Analysis
Chapter 09 Flexible Budgets and Performance Analysis
285. Nield Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company
bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One
vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company
uses the following data in its budgeting:
In July, the company budgeted for 430 guests and 210 jeeps. The actual activity for the month
was 415 guests and 205 jeeps.
Required:
Prepare a report showing the company’s activity variances for July. Label each variance as
favorable (F) or unfavorable (U).
Chapter 09 Flexible Budgets and Performance Analysis
9-257
286. Velazques Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The
company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and
jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide.
The company uses the following data in its budgeting:
In March, the company budgeted for 356 guests and 129 jeeps. The company’s income statement
showing the actual results for the month appears below:
Required:
Prepare a report showing the company’s activity variances for March. Label each variance as
favorable (F) or unfavorable (U).
Chapter 09 Flexible Budgets and Performance Analysis
Chapter 09 Flexible Budgets and Performance Analysis
9-259
287. Rizza Tech is a for-profit vocational school. The school bases its budgets on two measures
of activity (i.e., cost drivers), namely student and course. The school uses the following data in
its budgeting:
In April, the school budgeted for 1,350 students and 45 courses. The school’s income statement
showing the actual results for the month appears below:
Required:
Prepare a report showing the school’s revenue and spending variances for April. Label each
variance as favorable (F) or unfavorable (U).