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 facility expenses in the flexible budget for November would be closest to:

Brandewie Corporation bases its budgets on the activity measure customers served.During May,the company planned to serve 38,000 customers,but actually served 33,000 customers.Revenue is $2.80 per customer served.Wages and salaries are $28,800 per month plus $0.80 per customer served.Supplies are $0.50 per customer served.Insurance is $6,800 per month.Miscellaneous expenses are $5,800 per month plus $0.30 per customer served. Required: Prepare a report showing the company's activity variances for May.Indicate in each case whether the variance is favorable (F)or unfavorable (U).

The net operating income in the planning budget for May would be closest to: Refer To: 09-199

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

Karmazyn Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below: -The total cost at the activity level of 9,200 patient-visits per month should be:

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 occupancy expenses in the flexible budget for November would be closest to:

Mock Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 3,100 client-visits, but its actual level of activity was 3,150 client-visits. The clinic 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 personnel expenses in the planning budget for August 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 selling and administrative expenses in the planning budget for May would be closest to:

Gotthelf Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,480 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 administrative expenses in the planning budget for December would be closest to:

Doubleday Clinic uses client-visits as its measure of activity. During June, the clinic budgeted for 3,200 client-visits, but its actual level of activity was 3,180 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for June: -The net operating income in the planning budget for June 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 activity variance for wages and salaries in June would be closest to:

When a flexible budget is used in performance evaluation,actual costs are compared to what the costs should have been for the actual level of activity during the period rather than to the static planning budget.

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).

Salyers Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion.The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms.The Inn's overhead budget for the most recent month appears below The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 53 guests?

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 net operating income in the planning budget for October would be closest to:

Wadhams Snow Removal's cost formula for its vehicle operating cost is $1,900 per month plus $430 per snow-day.For the month of December,the company planned for activity of 16 snow-days,but the actual level of activity was 21 snow-days.The actual vehicle operating cost for the month was $11,470.The vehicle operating cost in the planning budget for December would be closest to:

Adeyemo Clinic uses patient-visits as its measure of activity.During July,the clinic budgeted for 2,500 patient-visits,but its actual level of activity was 2,800 patient-visits.The clinic 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: Required: Prepare the clinic's flexible budget performance report for July.Label each variance as favorable (F)or unfavorable (U).

Onofre 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 October,the school budgeted for 1,410 students and 58 courses.The actual activity for the month was 1,310 students and 62 courses. Required: Prepare the school's flexible budget for the actual level of activity in October.

Sroufe Clinic bases its budgets on the activity measure patient-visits.During July,the clinic planned for 3,500 patient-visits,but its actual level of activity was 4,000 patient-visits.The clinic has provided the following data concerning the formulas it uses in its budgeting: Required: Prepare a report showing the clinic's activity variances for July.Indicate in each case whether the variance is favorable (F)or unfavorable (U).

Askland Clinic uses client-visits as its measure of activity. During October, the clinic budgeted for 3,100 client-visits, but its actual level of activity was 3,130 client-visits. The clinic 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 revenue variance for October would be closest to: