Exam 9: Flexible Budgets and Performance Analysis

During November, Guerreiro Clinic budgeted for 2, 200 patient-visits, but its actual level of activity was 2, 500 patient-visits.Revenue should be $49.00 per patient-visit.Personnel expenses should be $30, 700 per month plus $14.70 per patient-visit.Medical supplies should be $1, 800 per month plus $6.50 per patient-visit.Occupancy expenses should be $7, 600 per month plus $1.40 per patient-visit.Administrative expenses should be $4, 700 per month plus $0.10 per patient-visit. Required: Prepare the clinic's flexible budget for November based on the actual level of activity for the month.

Gilson Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During April, the company budgeted for 5, 100 units, but its actual level of activity was 5, 060 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for April: Data used in budgeting: 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:

During April, Cheatam Corporation budgeted for 27, 000 customers, but actually served 23, 000 customers.The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.10q Wages and salaries: $33, 300 + $1.10q Supplies: $0.70q Insurance: $8, 600 Miscellaneous expense: $3, 700 + $0.40q Required: Prepare the company's flexible budget for April based on the actual level of activity for the month.

Sekuterski 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 $45, 700 per month plus $2, 892 per flight plus $4 per passenger.The company expected its activity in November to be 81 flights and 283 passengers, but the actual activity was 80 flights and 282 passengers.The actual cost for plane operating costs in November was $286, 360.The plane operating costs in the flexible budget for November would be closest to:

Papenfuss Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion.The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms.The Inn's overhead budget for the most recent month appears below: The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 76 guests?

Juenemann 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, 800 tenant-days, but its actual level of activity was 3, 770 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 spending variance for facility expenses in December would be closest to:

Eberley Corporation's cost formula for its manufacturing overhead is $25, 700 per month plus $10 per machine-hour.For the month of July, the company planned for activity of 5, 900 machine-hours, but the actual level of activity was 5, 920 machine-hours.The actual manufacturing overhead for the month was $86, 800. The spending variance for manufacturing overhead in July would be closest to:

During October, Haubold Corporation budgeted for 30, 000 customers, but actually served 29, 000 customers.Revenue should be $3.80 per customer served.Wages and salaries should be $31, 200 per month plus $1.40 per customer served.Supplies should be $0.70 per customer served.Insurance should be $8, 500 per month.Miscellaneous expenses should be $3, 700 per month plus $0.10 per customer served. Required: Prepare the company's flexible budget for October based on the actual level of activity for the month.

Larance Detailing's cost formula for its materials and supplies is $2, 230 per month plus $1 per vehicle.For the month of November, the company planned for activity of 75 vehicles, but the actual level of activity was 25 vehicles.The actual materials and supplies for the month was $2, 160. The materials and supplies in the planning budget for November would be closest to:

Perla 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, 200 tenant-days, but its actual level of activity was 2, 160 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Actual results for March: The food and supplies in the flexible budget for March would be closest to:

Olivera Corporation's flexible budget performance report for last month shows that actual indirect materials cost, a variable cost, was $31, 178 and that the spending variance for indirect materials cost was $2, 261 unfavorable.During that month, the company worked 11, 900 machine-hours.Budgeted activity for the month had been 12, 200 machine-hours.The cost formula per machine-hour for indirect materials cost must have been closest to:

Danoff Midwifery's cost formula for its wages and salaries is $1, 540 per month plus $497 per birth.For the month of March, the company planned for activity of 112 births, but the actual level of activity was 107 births.The actual wages and salaries for the month was $56, 850.The activity variance for wages and salaries in March would be closest to:

Coderre Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During July, the company budgeted for 7, 800 units, but its actual level of activity was 7, 780 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for July: Data used in budgeting: Actual results for July: The direct labor in the planning budget for July would be closest to:

Wales 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 2, 700 tenant-days, but its actual level of activity was 2, 730 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 February would be closest to:

Wales 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 2, 700 tenant-days, but its actual level of activity was 2, 730 tenant-days.The kennel has provided the following data concerning the formulas to be used in its budgeting: The food and supplies in the flexible budget for February would be closest to:

Jiminian Clinic uses client-visits as its measure of activity.During March, the clinic budgeted for 3, 700 client-visits, but its actual level of activity was 3, 660 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Actual results for March: The net operating income in the flexible budget for March would be closest to:

Petroski Natural Dying Corporation measures its activity in terms of skeins of yarn dyed.Last month, the budgeted level of activity was 19, 700 skeins and the actual level of activity was 19, 900 skeins.The company's owner budgets for dye costs, a variable cost, at $0.67 per skein.The actual dye cost last month was $13, 910.In the company's flexible budget performance report for last month, what would have been the spending variance for dye costs?

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

Fuhrer Hotel bases its budgets on guest-days.The hotel's static budget for December appears below: The total overhead cost at an activity level of 7, 500 guest-days per month should be:

Coody Clinic uses patient-visits as its measure of activity.The clinic has provided the following report: Required: Prepare the clinic's flexible budget performance report for July.Label each variance as favorable (F)or unfavorable (U).