Chapter 09 Flexible Budgets and Performance Analysis
65. The activity variance for cleaning equipment and supplies in June would be closest to:
66. The spending variance for cleaning equipment and supplies in June would be closest to:
Chapter 09 Flexible Budgets and Performance Analysis
9-48
Stivason Clinic uses client-visits as its measure of activity. During September, the clinic
budgeted for 3,300 client-visits, but its actual level of activity was 3,290 client-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for September:
Data used in budgeting:
Actual results for September:
Chapter 09 Flexible Budgets and Performance Analysis
67. The activity variance for personnel expenses in September would be closest to:
68. The activity variance for administrative expenses in September would be closest to:
Chapter 09 Flexible Budgets and Performance Analysis
69. The activity variance for net operating income in September would be closest to:
Chapter 09 Flexible Budgets and Performance Analysis
Gourley Clinic uses client-visits as its measure of activity. During August, the clinic budgeted
for 3,200 client-visits, but its actual level of activity was 3,160 client-visits. The clinic has
provided the following data concerning the formulas to be used in its budgeting:
70. The activity variance for personnel expenses in August would be closest to:
Chapter 09 Flexible Budgets and Performance Analysis
71. The activity variance for administrative expenses in August would be closest to:
Chapter 09 Flexible Budgets and Performance Analysis
72. The activity variance for net operating income in August would be closest to:
Chapter 09 Flexible Budgets and Performance Analysis
Snyders 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 October, the kennel budgeted for 2,600 tenant-
days, but its actual level of activity was 2,610 tenant-days. The kennel has provided the
following data concerning the formulas to be used in its budgeting:
73. The activity variance for wages and salaries in October would be closest to:
Chapter 09 Flexible Budgets and Performance Analysis
74. The activity variance for administrative expenses in October would be closest to:
Chapter 09 Flexible Budgets and Performance Analysis
75. The activity variance for net operating income in October would be closest to:
Chapter 09 Flexible Budgets and Performance Analysis
9-57
Albers Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During April, the company budgeted
for 7,600 units, but its actual level of activity was 7,570 units. The company has provided the
following data concerning the formulas used in its budgeting and its actual results for April:
Data used in budgeting:
Actual results for April:
Chapter 09 Flexible Budgets and Performance Analysis
76. The activity variance for direct labor in April would be closest to:
77. The activity variance for selling and administrative expenses in April would be closest to:
Chapter 09 Flexible Budgets and Performance Analysis
78. The activity variance for net operating income in April would be closest to:
Chapter 09 Flexible Budgets and Performance Analysis
Kuramoto Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During June, the company budgeted
for 7,600 units, but its actual level of activity was 7,560 units. The company has provided the
following data concerning the formulas to be used in its budgeting:
79. The activity variance for direct labor in June would be closest to:
Chapter 09 Flexible Budgets and Performance Analysis
80. The activity variance for selling and administrative expenses in June would be closest to:
Chapter 09 Flexible Budgets and Performance Analysis
81. The activity variance for net operating income in June would be closest to:
Chapter 09 Flexible Budgets and Performance Analysis
9-63
Nussey Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for
2,100 client-visits, but its actual level of activity was 2,050 client-visits. The clinic has provided
the following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Actual results for May:
Chapter 09 Flexible Budgets and Performance Analysis
82. The revenue variance for May would be closest to:
83. The spending variance for medical supplies in May would be closest to:
Chapter 09 Flexible Budgets and Performance Analysis
84. The spending variance for occupancy expenses in May would be closest to:
Chapter 09 Flexible Budgets and Performance Analysis
85. The overall revenue and spending variance (i.e., the variance for net operating income in the
revenue and spending variance column on the flexible budget performance report) for May
would be closest to: