Exam 8: Flexible Budgets and Performance Analysis

Tolentino 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 November, the kennel budgeted for 2,600 tenant-days, but its actual level of activity was 2,620 tenant-days. The kennel 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:

Marsee 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 2,500 tenant-days, but its actual level of activity was 2,510 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 administrative expenses in the planning budget for June would be closest to:

Petersheim Snow Removal's cost formula for its vehicle operating cost is $1,750 per month plus $484 per snow-day.For the month of November,the company planned for activity of 15 snow-days,but the actual level of activity was 14 snow-days.The actual vehicle operating cost for the month was $8,360.The vehicle operating cost in the flexible budget for November would be closest to:

Brothern Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 6,800 units, but its actual level of activity was 6,820 units. The company 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 net operating income in the planning budget for May would be closest to:

Friou Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 6,300 units, but its actual level of activity was 6,250 units. The company 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: -The manufacturing overhead in the flexible budget for July 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 net operating income in the planning budget for December would be closest to:

Hanekamp 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 5,400 units, but its actual level of activity was 5,440 units. The company has provided the following data concerning the formulas to be used in its budgeting: -The manufacturing overhead in the flexible budget for August would be closest to:

Nakhle 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 3,000 tenant-days, but its actual level of activity was 2,960 tenant-days. The kennel 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 administrative expenses in the planning budget for October would be closest to:

Foxworthy 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 July, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 2,050 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: -The wages and salaries in the planning budget for July would be closest to:

Socha Memorial Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for January was based on 3,400 meals,but the diner actually served 3,800 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 activity variances for each of the expenses and for total expenses for January.Label each variance as favorable (F)or unfavorable (U).

Mable Memorial Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for April was based on 3,000 meals,but the diner actually served 3,100 meals.The diner's director has provided the following cost formulas to use in budgets: Required: Prepare a report showing the activity variances for each of the expenses and for total expenses for April.Label each variance as favorable (F)or unfavorable (U).

Clovis Midwifery's cost formula for its wages and salaries is $2,680 per month plus $245 per birth.For the month of September,the company planned for activity of 118 births,but the actual level of activity was 121 births.The actual wages and salaries for the month was $33,290.The wages and salaries in the flexible budget for September 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 direct labor in April 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 flexible budget for August 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 administrative expenses in the planning budget for May would be closest to:

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.

Tuason Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,930 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 activity variance for administrative expenses in May would be closest to:

Dukeman Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During February, the company budgeted for 7,100 units, but its actual level of activity was 7,060 units. The company has provided the following data concerning the formulas to be used in its budgeting: -The net operating income in the planning budget for February would be closest to:

Galante 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 3,400 tenant-days, but its actual level of activity was 3,380 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 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:

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.