Exam 10: Flexible Budgets and Performance Analysis

Higgenbotham Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 3,600 client-visits, but its actual level of activity was 3,580 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for May: -The administrative expenses in the planning budget for May would be closest to:

Tosta 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 2,100 tenant-days, but its actual level of activity was 2,050 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May: -The net operating income in the flexible budget for May would be closest to:

Legard 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 January, 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 January: -The activity variance for wages and salaries in January would be closest to:

Flicker Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for December was based on 2,400 meals, but the diner actually served 2,300 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.00 per meal; kitchen operations, $5,100 per month plus $1.85 per meal; administrative expenses, $2,900 per month plus $0.65 per meal; and fundraising expenses, $1,000 per month. Required: Prepare a report showing the activity variances for each of the expenses and for total expenses for December. Label each variance as favorable (F) or unfavorable (U).

During October, Moceri Clinic budgeted for 3,000 patient-visits, but its actual level of activity was 3,500 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits: Revenue: $41.80q Personnel expenses: $30,900 + $13.70q Medical supplies: $700 + $7.80q Occupancy expenses: $8,900 + $1.50q Administrative expenses: $3,600 + $0.20q Required: Prepare the clinic's flexible budget for October based on the actual level of activity for the month.

Springmeyer Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,940 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August: -The personnel expenses in the planning budget for August would be closest to:

Swader 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 2,900 tenant-days, but its actual level of activity was 2,930 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: -The facility expenses in the flexible budget for March would be closest to:

Swader 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 2,900 tenant-days, but its actual level of activity was 2,930 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: -The net operating income in the flexible budget for March would be closest to:

Ofarrell Snow Removal's cost formula for its vehicle operating cost is $1,840 per month plus $377 per snow-day. For the month of November, the company planned for activity of 14 snow-days, but the actual level of activity was 19 snow-days. The actual vehicle operating cost for the month was $9,280. The vehicle operating cost in the flexible budget for November would be closest to:

Lutts 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 3,800 tenant-days, but its actual level of activity was 3,850 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 November would be closest to:

Brattain Tile Installation Corporation measures its activity in terms of square feet of tile installed. Last month, the budgeted level of activity was 1,230 square feet and the actual level of activity was 1,140 square feet. The company's owner budgets for supply costs, a variable cost, at $2.10 per square foot. The actual supply cost last month was $3,260. In the company's flexible budget performance report for last month, what would have been the spending variance for supply costs?

Lauter 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 $5,300 per month plus $480 per press run plus $1,080 per book set-up. The company expected its activity in October to be 169 press runs and 64 book set-ups, but the actual activity was 167 press runs and 60 book set-ups. The actual cost for wages and salaries in October was $155,690. -The activity variance for wages and salaries in October would be closest to:

Kaaihue Detailing's cost formula for its materials and supplies is $2,750 per month plus $17 per vehicle. For the month of April, the company planned for activity of 95 vehicles, but the actual level of activity was 135 vehicles. The actual materials and supplies for the month was $4,850. -The activity variance for materials and supplies in April would be closest to:

Henkel Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,600 client-visits, but its actual level of activity was 3,550 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November: -The personnel expenses in the planning budget for November would be closest to:

Eisner 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 1,490 students and 85 courses. The school's income statement showing the actual results for the month appears below: Required: Prepare a report showing the school's activity variances for October. Label each variance as favorable (F) or unfavorable (U).

Cotty Clinic uses client-visits as its measure of activity. During March, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 2,970 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for March: -The activity variance for administrative expenses in March would be closest to:

Mulvehill Clinic bases its budgets on the activity measure patient-visits. During June, the clinic planned for 3,000 patient-visits, but the actual level of activity was 3,400 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 June. Indicate in each case whether the variance is favorable (F) or unfavorable (U).

Alarie 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 November, the school budgeted for 1,420 students and 139 courses. The actual activity for the month was 1,220 students and 142 courses. Required: Prepare a report showing the school's activity variances for November. Label each variance as favorable (F) or unfavorable (U).

Which of the following comparisons best isolates the impact that changes in prices of inputs and outputs have on performance?

Baugus 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 6,900 units, but its actual level of activity was 6,950 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August: -The revenue variance for August would be closest to: