Exam 9: Flexible Budgets and Performance Analysis

Dewberry Midwifery's cost formula for its wages and salaries is $1,960 per month plus $429 per birth.For the month of December,the company planned for activity of 128 births,but the actual level of activity was 130 births.The actual wages and salaries for the month was $56,020.The wages and salaries in the flexible budget for December would be closest to:

Bessey Hospital bases its budgets on patient-visits.The hospital's static planning budget for January appears below: -The spending variance for supplies costs in the flexible budget performance report for the month is:

Murphree Clinic uses client-visits as its measure of activity.During April,the clinic budgeted for 3,300 client-visits,but its actual level of activity was 3,350 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for April: -The net operating income in the flexible budget for April 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 planning budget for May would be closest to:

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

Hoeper Clinic uses client-visits as its measure of activity.During January,the clinic budgeted for 2,600 client-visits,but its actual level of activity was 2,570 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:

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 medical supplies in the flexible budget for May would be closest to:

Stent 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 February,the kennel budgeted for 3,000 tenant-days,but its actual level of activity was 2,950 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: -The facility expenses in the flexible budget for February 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:

Domin Corporation bases its budgets on the activity measure customers served.During April,the company planned to serve 31,000 customers,but actually served 35,000 customers.Revenue is $4.80 per customer served.Wages and salaries are $33,000 per month plus $1.60 per customer served.Supplies are $1.00 per customer served.Insurance is $12,200 per month.Miscellaneous expenses are $7,400 per month plus $0.20 per customer served. Required: Prepare a report showing the company's activity variances for April.Indicate in each case whether the variance is favorable (F) or unfavorable (U).

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 activity variance for cleaning equipment and supplies in September would be closest to:

Lauser Clinic uses client-visits as its measure of activity.During July,the clinic budgeted for 3,700 client-visits,but its actual level of activity was 3,690 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July: -The occupancy expenses in the flexible budget for July would be closest to:

Enriques Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During February,the company budgeted for 5,000 units,but its actual level of activity was 4,990 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for February: -The activity variance for direct labor in February would be closest to:

Duell Clinic uses patient-visits as its measure of activity.The following report compares the planning budget to the actual operating results for the month of January: Required: Prepare the clinic's flexible budget performance report for January.Label each variance as favorable (F) or unfavorable (U).

Moorhouse Clinic uses client-visits as its measure of activity.During December,the clinic budgeted for 3,700 client-visits,but its actual level of activity was 3,690 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: -The revenue variance for December would be closest to:

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 wages and salaries in the flexible budget for October would be closest to:

Placek Hospital bases its budgets on patient-visits.The hospital's static budget for October appears below: The total overhead cost at an activity level of 7,700 patient-visits per month should be:

Murphree Clinic uses client-visits as its measure of activity.During April,the clinic budgeted for 3,300 client-visits,but its actual level of activity was 3,350 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its 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:

Gorley 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 February,the kennel budgeted for 3,900 tenant-days,but its actual level of activity was 3,940 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 February would be closest to:

Stent 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 February,the kennel budgeted for 3,000 tenant-days,but its actual level of activity was 2,950 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: -The spending variance for facility expenses in February would be closest to: