Exam 8: Flexible Budgets and Performance Analysis

Rubidoux 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 September,the company budgeted for 483 guests and 240 jeeps.The company's income statement showing the actual results for the month appears below: Required: Prepare a report showing the company's revenue and spending variances for September.Label each variance as favorable (F)or unfavorable (U).

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 net operating income in the flexible budget for February would be closest to:

Sissac 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 $470 per month plus $101 per job plus $24 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 May to be 12 jobs and 123 meals,but the actual activity was 9 jobs and 126 meals.The actual cost for catering supplies in May was $4,240.The spending variance for catering supplies in May would be closest to:

Langner Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,740 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 activity variance for administrative expenses in February would be closest to:

Mish Clinic bases its budgets on patient-visits.During November,the clinic plans for a level of activity of 3,200 patient-visits.The clinic has provided the following data concerning the formulas it uses in its budgeting: Required: Prepare the clinic's planning budget for November.

Amadon 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 7,900 units, but its actual level of activity was 7,920 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 July would be closest to:

A flexible budget performance report contains both activity variances and revenue and spending variances.

MacPhail 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 5,600 units, but its actual level of activity was 5,650 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 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 April would be closest to:

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 activity variance for personnel expenses in October would be closest to:

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: -The activity variance for net operating income in October would be closest to:

Chapnick Clinic bases its budgets on the activity measure patient-visits.During September,the clinic planned for 2,800 patient-visits.The clinic has provided the following data concerning the formulas it uses in its budgeting: The clinic has also furnished its income statement for September: Required: Prepare a report showing the clinic's activity variances for September.

During March,Samorano Clinic plans for an activity level of 2,500 patient-visits.Revenue is $42.10 per patient-visit.Personnel expenses are $30,400 per month plus $11.20 per patient-visit.Medical supplies are $1,100 per month plus $6.50 per patient-visit.Occupancy expenses are $6,500 per month plus $1.90 per patient-visit.Administrative expenses are $5,200 per month plus $0.40 per patient-visit. Required: Prepare the clinic's planning budget for March.

Diskind 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 6,650 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:

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

Bamba Corporation's cost formula for its selling and administrative expense is $47,900 per month plus $52 per unit. For the month of April, the company planned for activity of 6,000 units, but the actual level of activity was 5,960 units. The actual selling and administrative expense for the month was $364,490. -The spending variance for selling and administrative expense in April 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 net operating income in the planning budget for May would be closest to:

Ingrum Framing's cost formula for its supplies cost is $1,120 per month plus $11 per frame.For the month of June,the company planned for activity of 611 frames,but the actual level of activity was 607 frames.The actual supplies cost for the month was $8,150.The spending variance for supplies cost in June would be closest to:

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: -The activity variance for personnel expenses in August would be closest to:

Moss Clinic bases its budgets on the activity measure patient-visits.During August,the clinic planned for an activity level of 2,100 patient-visits,but the activity level was actually 2,400 patient-visits.The clinic has provided the following data concerning the formulas it uses in its budgeting: Required: Prepare the clinic's flexible budget for August based on the actual level of activity for the month.