Exam 8: Flexible Budgets and Performance Analysis

Celius Midwifery's cost formula for its wages and salaries is $2,410 per month plus $292 per birth.For the month of March,the company planned for activity of 113 births,but the actual level of activity was 116 births.The actual wages and salaries for the month was $35,340.The spending variance for wages and salaries in March would be closest to:

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: -The activity variance for personnel expenses in September 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 administrative expenses in the planning budget for September would be closest to:

Carlisle Clinic uses patient-visits as its measure of activity.During December,the clinic budgeted for 2,500 patient-visits,but its actual level of activity was 2,100 patient-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: Required: Prepare a report showing the clinic's revenue and spending variances for December.Label each variance as favorable (F)or unfavorable (U).

Fullagar Corporation's cost formula for its manufacturing overhead is $15,400 per month plus $11 per machine-hour. For the month of May, the company planned for activity of 7,500 machine-hours, but the actual level of activity was 7,540 machine-hours. The actual manufacturing overhead for the month was $102,710. -The manufacturing overhead in the flexible budget for May would be closest to:

Roye 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 September, the kennel budgeted for 3,300 tenant-days, but its actual level of activity was 3,330 tenant-days. The kennel 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: -The spending variance for facility expenses in September would be closest to:

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 activity variance for direct labor in October would be closest to:

Turnner 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 April,the company budgeted for 374 guests and 166 jeeps.The actual activity for the month was 364 guests and 167 jeeps. Required: Prepare the company's planning budget for April.

Rushton Hospital bases its budgets on patient-visits. The hospital's static planning budget for May appears below: Actual results for the month were: -The spending variance for occupancy costs in the flexible budget performance report for the month is:

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 expendables in the flexible budget for December would be closest to:

Zylka Air uses two measures of activity,flights and passengers,in the cost formulas in its budgets and performance reports.The cost formula for plane operating costs is $47,400 per month plus $2,337 per flight plus $3 per passenger.The company expected its activity in April to be 67 flights and 263 passengers,but the actual activity was 62 flights and 267 passengers.The actual cost for plane operating costs in April was $189,760.The plane operating costs in the planning budget for April would be closest to:

Yewston Hotel bases its budgets on guest-days. The hotel's static budget for April appears below: -The total cost at the activity level of 3,300 guest-days per month should be:

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 activity variance for net operating income in August would be closest to:

Vieyra Corporation uses customers served as its measure of activity.During November,the company budgeted for 36,000 customers,but actually served 39,000 customers.The company uses the following revenue and cost formulas in its budgeting,where q is the number of customers served: Revenue: $2.50q Wages and salaries: $21,500 + $0.70q Supplies: $0.40q Insurance: $6,100 Miscellaneous: $3,700 + $0.40q The company reported the following actual results for November: Required: Prepare the company's flexible budget performance report for November.Label each variance as favorable (F)or unfavorable (U).

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

Wartenberg Corporation uses customers served as its measure of activity.The company bases its budgets on the following information: Revenue should be $3.80 per customer served.Wages and salaries should be $38,800 per month plus $1.00 per customer served.Supplies should be $0.60 per customer served.Insurance should be $7,100 per month.Miscellaneous expenses should be $5,100 per month plus $0.30 per customer served. The company reported the following actual results for January: Required: Prepare a report showing the company's revenue and spending variances for January.Label each variance as favorable (F)or unfavorable (U).

Ehrler 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 March,the company budgeted for 328 guests and 143 jeeps.The actual activity for the month was 338 guests and 147 jeeps. Required: Prepare the company's flexible budget for the actual level of activity in March.

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 wages and salaries in October 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 administrative expenses in the planning budget for February would be closest to:

Maliszewski 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 March, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,410 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: -The facility expenses in the flexible budget for March would be closest to: