Exam 8: Flexible Budgets and Performance Analysis

Caballes Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,100 client-visits, but its actual level of activity was 3,070 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting: Actual results for November: -The net operating income in the flexible budget for November would be closest to:

Arkin 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 May, the kennel budgeted for 3,100 tenant-days, but its actual level of activity was 3,070 tenant-days. The kennel 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: -The activity variance for wages and salaries in May would be closest to:

Wohner Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 5,000 units, but its actual level of activity was 5,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August: Data used in budgeting: Actual results for August: -The net operating income in the planning budget for August would be closest to:

Newsom Footwear Corporation's flexible budget cost formula for supplies,a variable cost,is $2.61 per unit of output.The company's flexible budget performance report for last month showed a $6,840 unfavorable spending variance for supplies.During that month,17,100 units were produced.Budgeted activity for the month had been 16,700 units.The actual cost per unit for indirect materials must have been closest to:

Arkin 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 May, the kennel budgeted for 3,100 tenant-days, but its actual level of activity was 3,070 tenant-days. The kennel 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: -The spending variance for expendables in May would be closest to:

Wayland Corporation's static planning budget for April appears below. The company bases its budgets on machine-hours. In April, the actual number of machine-hours was 6,600, the actual supplies cost was $64,040, the actual power cost was $7,070, the actual salaries cost was $88,300, and the actual equipment depreciation was $7,430. -The spending variance for equipment depreciation in the flexible budget performance report for the month should be:

Cadavieco Detailing's cost formula for its materials and supplies is $1,990 per month plus $8 per vehicle. For the month of November, the company planned for activity of 92 vehicles, but the actual level of activity was 52 vehicles. The actual materials and supplies for the month was $2,440. -The activity variance for materials and supplies in November would be closest to:

Karmazyn Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below: -The total fixed cost at the activity level of 9,300 patient-visits per month should be:

Kara Catering uses two measures of activity,jobs and meals,in the cost formulas in its budgets and performance reports.The cost formula for catering supplies is $310 per month plus $84 per job plus $17 per meal.A typical job involves serving a number of meals to guests at a corporate function or at a host's home.The company expected its activity in July to be 15 jobs and 127 meals,but the actual activity was 14 jobs and 126 meals.The actual cost for catering supplies in July was $3,620.The activity variance for catering supplies in July would be closest to:

Hamp 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 December, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 3,050 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: -The administrative expenses in the planning budget for December would be closest to:

Privitera Printing uses two measures of activity, press runs and book set-ups, in the cost formulas in its budgets and performance reports. The cost formula for wages and salaries is $7,220 per month plus $650 per press run plus $1,110 per book set-up. The company expected its activity in January to be 188 press runs and 117 book set-ups, but the actual activity was 191 press runs and 114 book set-ups. The actual cost for wages and salaries in January was $269,270. -The spending variance for wages and salaries in January would be closest to:

Lizana Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,680 client-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: -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 December would be closest to:

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: -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:

Edington Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,800 client-visits, but its actual level of activity was 2,850 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for September: -The personnel expenses in the planning budget for September would be closest to:

Goodfriend 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 June, the kennel budgeted for 2,800 tenant-days, but its actual level of activity was 2,840 tenant-days. The kennel 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: -The spending variance for expendables in June would be closest to:

Directly comparing static budget costs to actual costs only makes sense if the costs are fixed.

Diiorio Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,700 client-visits, but its actual level of activity was 2,750 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting: Actual results for February: -The occupancy expenses in the flexible budget for February would be closest to:

Figliola Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 6,700 units, but its actual level of activity was 6,680 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Actual results for October: -The spending variance for direct materials in October would be closest to:

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: -The activity variance for selling and administrative expenses in April would be closest to:

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.