Exam 9: Flexible Budgets and Performance Analysis

Tennies Clinic uses client-visits as its measure of activity. During November, 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 November: Data used in budgeting: Actual results for November: -The activity variance for personnel expenses in November would be closest to:

Mansour Memorial Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for February was based on 3,000 meals,but the diner actually served 3,400 meals.The diner's director has provided the following cost formulas to use in budgets: Required: Prepare the diner's flexible budget for the actual number of meals served in February.The budget will only contain the costs listed above; no revenues will be on the budget.

Witten Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. A total of 27 customers were actually served during January. -The "Employee salaries and wages" in the flexible budget for January would have been closest to:

Speyer Medical Clinic measures its activity in terms of patient-visits.Last month,the budgeted level of activity was 1,530 patient-visits and the actual level of activity was 1,490 patient-visits.The cost formula for administrative expenses is $4.00 per patient-visit plus $15,300 per month.The actual administrative expense was $19,810.In the clinic's flexible budget performance report for last month,the spending variance for administrative expenses was:

Chaudhuri Memorial Diner is a charity supported by donations that provides free meals to the homeless.The diner's budget for April was based on 2,700 meals.The diner's director has provided the following cost formulas to use in budgets: The director has also provided the diner's statement of actual expenses for the month: Required: Prepare a flexible budget performance report showing both the activity variances and the spending variances for each of the expenses and for total expenses for April.Label each variance as favorable (F)or unfavorable (U).

Kawamura 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 2,300 tenant-days, but its actual level of activity was 2,320 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: -The administrative expenses in the planning budget for December would be closest to:

Pickrel Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. When the company prepared its planning budget at the beginning of November, it assumed that 27 wells would have been serviced. However, 31 wells were actually serviced during November. -The amount shown for revenue in the planning budget for November would have been closest to:

Manter Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 6,900 units, but its actual level of activity was 6,940 units. The company 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 selling and administrative expenses in the planning budget for June would be closest to:

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

Hubbard 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 2,100 tenant-days, but its actual level of activity was 2,060 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Please keep the heads "Data usd in budgeting:" This makes it absolutely clear that the table immediately below the head is for budgeting and the table that follows are actual results. Actual results for January: -The wages and salaries in the planning budget for January would be closest to:

Sharifi 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 9,200 patient-visits per month should be:

Rients Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for October. When the company prepared its planning budget at the beginning of October, it assumed that 39 customers would have been served. However, 44 customers were actually served during October. -The spending variance for "Other expenses" for October would have been closest to:

Blakesley Corporation is a service company that measures its output by the number of customers served.The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. When the company prepared its planning budget at the beginning of January,it assumed that 38 customers would have been served.However,42 customers were actually served during January. Required: Prepare a report showing the company's activity variances for January.Indicate in each case whether the variance is favorable (F)or unfavorable (U).

Kekiwi 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 6,900 units, but its actual level of activity was 6,910 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Actual results for January: -The direct materials in the flexible budget for January would be closest to:

Rhed 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 3,700 tenant-days, but its actual level of activity was 3,650 tenant-days. The kennel 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: -The wages and salaries in the planning budget for December would be closest to:

Bade Midwifery's cost formula for its wages and salaries is $1,220 per month plus $246 per birth.For the month of October,the company planned for activity of 106 births,but the actual level of activity was 102 births.The actual wages and salaries for the month was $27,250.The activity variance for wages and salaries in October would be closest to:

Benjamin Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. When the company prepared its planning budget at the beginning of March, it assumed that 26 containers would have been refurbished. However, 23 containers were actually refurbished during March. -The amount shown for "Refurbishing materials" in the planning budget for March would have been closest to:

Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,900 units, but its actual level of activity was 5,940 units. The company 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 direct labor in the planning budget for May would be closest to:

Milot Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for April. When the company prepared its planning budget at the beginning of April, it assumed that 32 wells would have been serviced. However, 29 wells were actually serviced during April. -The activity variance for total expenses for April would have been closest to:

Capelli Hospital bases its budgets on patient-visits. The hospital's static budget for August appears below: -The total fixed cost at the activity level of 9,600 patient-visits per month should be: