Exam 9: Flexible Budgets and Performance Analysis

Burget Clinic uses client-visits as its measure of activity.During July,the clinic budgeted for 2,100 client-visits,but its actual level of activity was 2,110 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July: -The spending variance for medical supplies in July would be closest to:

Werber Clinic uses client-visits as its measure of activity.During January,the clinic budgeted for 2,700 client-visits,but its actual level of activity was 2,730 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: -The activity variance for personnel expenses in January would be closest to:

Woofter Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During January,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 used in its budgeting and its actual results for January: -The net operating income in the planning budget for January would be closest to:

Bures 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 360 guests and 134 jeeps.The actual activity for the month was 335 guests and 136 jeeps. Required: Prepare a report showing the company's activity variances for April.Label each variance as favorable (F) or unfavorable (U).

During July,Bosell Corporation budgeted for 22,000 customers,but actually served 21,000 customers.Revenue should be $6.80 per customer served.Wages and salaries should be $35,900 per month plus $2.40 per customer served.Supplies should be $1.20 per customer served.Insurance should be $12,000 per month.Miscellaneous expenses should be $6,000 per month plus $0.30 per customer served. Required: Prepare the company's flexible budget for July based on the actual level of activity for the month.

Whetstine 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 3,200 tenant-days,but its actual level of activity was 3,180 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 September would be closest to:

Mah Clinic uses client-visits as its measure of activity.During April,the clinic budgeted for 3,800 client-visits,but its actual level of activity was 3,750 client-visits.The clinic has provided the following data concerning the formulas to be used in its budgeting: -The medical supplies in the flexible budget for April would be closest to:

Blackwelder Snow Removal's cost formula for its vehicle operating cost is $1,240 per month plus $348 per snow-day.For the month of December,the company planned for activity of 12 snow-days,but the actual level of activity was 14 snow-days.The actual vehicle operating cost for the month was $6,330.The vehicle operating cost in the planning budget for December would be closest to:

During September,Booker Corporation budgeted for 20,000 customers,but actually served 22,000 customers.The company uses the following revenue and cost formulas in its budgeting,where q is the number of customers served: Revenue: $5.50q Wages and salaries: $28,300 + $1.70q Supplies: $1.00q Insurance: $6,300 Miscellaneous: $5,400 + $0.40q Required: Prepare the company's flexible budget for September based on the actual level of activity for the month.

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 materials and supplies in the flexible budget for April would be closest to:

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.

Dantuono Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During November,the company budgeted for 7,700 units,but its actual level of activity was 7,720 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for November: -The net operating income in the planning budget for November would be closest to:

Deleston Boat Wash's cost formula for its cleaning equipment and supplies is $2,150 per month plus $21 per boat.For the month of September,the company planned for activity of 79 boats,but the actual level of activity was 39 boats.The actual cleaning equipment and supplies for the month was $3,110. -The cleaning equipment and supplies in the flexible budget for September would be closest to:

Weisgarber Clinic uses client-visits as its measure of activity.During August,the clinic budgeted for 3,900 client-visits,but its actual level of activity was 3,850 client-visits.The clinic has provided the following data concerning the formulas to be used in its budgeting for August: -The administrative expenses in the planning budget for August would be closest to: