1.Schlick Framing’s cost formula for its supplies cost is $1,720 per month plus $10 per frame. For the month of August, the company planned for activity of 612 frames, but the actual level of activity was 616 frames. The actual supplies cost for the month was $8,050. The activity variance for supplies cost in August would be closest to:o $40 Uo $40 Fo $210 Fo $210 U 2.Thomasson 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 $36,300 per month plus $2,070 per flight plus $1 per passenger. The company expected its activity in April to be 90 flights and 240 passengers, but the actual activity was 89 flights and 245 passengers. The actual cost for plane operating costs in April was $218,320. The activity variance for plane operating costs in April would be closest to:o $4,520 Fo $4,520 Uo $2,065 Uo $2,065 F 3.Ingrum Framing’s cost formula for its supplies cost is $1,020 per month plus $12 per frame. For the month of June, the company planned for activity of 612 frames, but the actual level of activity was 602 frames. The actual supplies cost for the month was $8,100. The spending variance for supplies cost in June would be closest to:o $264 Uo $264 Fo $144 Uo $144 F 4.Sissac Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $530 per month plus $102 per job plus $33 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host’s home. The company expected its activity in May to be 10 jobs and 133 meals, but the actual activity was 5 jobs and 140 meals. The actual cost for catering supplies in May was $5,350. The spending variance for catering supplies in May would be closest to:o $589 Fo $310 Uo $310 Fo $589 U 5.Karmazyn Hospital bases its budgets on patient-visits. The hospital’s static budget for October appears below: Budgeted number of patient-visits8,400 Budgeted variable costs: Supplies (@ $8.50 per patient-visit)$ 71,400 Laundry (@ $8.20 per patient-visit)68,880 Total variable cost140,280 Budgeted fixed costs: Wages and salaries99,640 Occupancy costs107,640 Total fixed cost207,280 Total cost$347,560 The total variable cost at the activity level of 8,500 patient-visits per month should be:o $140,280o $141,950o $207,280o $209,610 6.Cadavieco Detailing’s cost formula for its materials and supplies is $1,860 per month plus $5 per vehicle. For the month of November, the company planned for activity of 81 vehicles, but the actual level of activity was 46 vehicles. The actual materials and supplies for the month was $2,150.The materials and supplies in the planning budget for November would be closest to:o $2,265o $2,150o $3,856o $2,090 7.Cadavieco Detailing’s cost formula for its materials and supplies is $1,960 per month plus $15 per vehicle. For the month of November, the company planned for activity of 91 vehicles, but the actual level of activity was 56 vehicles. The actual materials and supplies for the month was $2,580.The materials and supplies in the flexible budget for November would be closest to:o $3,325o $2,800o $1,935o $2,580 8.Cadavieco Detailing’s cost formula for its materials and supplies is $2,060 per month plus $12 per vehicle. For the month of November, the company planned for activity of 86 vehicles, but the actual level of activity was 46 vehicles. The actual materials and supplies for the month was $2,350.The activity variance for materials and supplies in November would be closest to:o $480 Fo $742 Uo $742 Fo $480 U 9.value:2.00 pointsCadavieco Detailing’s cost formula for its materials and supplies is $1,980 per month plus $10 per vehicle. For the month of November, the company planned for activity of 93 vehicles, but the actual level of activity was 53 vehicles. The actual materials and supplies for the month was $2,820.The spending variance for materials and supplies in November would be closest to:o $310 Fo $90 Uo $90 Fo $310 U 10.Galante 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, Kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,380 tenant-days. Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:Data used in budgeting:Fixed elementper monthVariable element per tenant-day Revenueâ$29.90 Wages and salaries$2,400 $5.90 Food and supplies600 10.70 Facility expenses7,400 2.90 Administrative expenses 7,200 0.50 Total expenses$17,600 $20.00 Actual results for May: Revenue$107,180 Wages and salaries$23,440 Food and supplies$36,784 Facility expenses$19,190 Administrative expenses$9,128 The net operating income in the planning budget for May would be closest to:o $15,862o $18,638o $18,544o $16,060 11.Galante 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, Kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,380 tenant-days. Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:Data used in budgeting:Fixed elementper monthVariable element per tenant-day Revenueâ$29.90 Wages and salaries$2,400 $5.90 Food and supplies600 10.70 Facility expenses7,400 2.90 Administrative expenses 7,200 0.50 Total expenses$17,600 $20.00 Actual results for May: Revenue$107,180 Wages and salaries$23,440 Food and supplies$36,784 Facility expenses$19,190 Administrative expenses$9,128 The net operating income in the flexible budget for May would be closest to:o $15,862o $18,544o $18,638o $16,060 12.Galante 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, Kennel budgeted for 3,200 tenant-days, but its actual level of activity was 3,180 tenant-days. Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:Data used in budgeting:Fixed elementper monthVariable element per tenant-day Revenueâ$29.70 Wages and salaries$2,200 $5.70 Food and supplies400 10.50 Facility expenses7,200 2.70 Administrative expenses 7,000 0.10 Total expenses$16,800 $19.00 Actual results for May: Revenue$106,980 Wages and salaries$23,420 Food and supplies$36,782 Facility expenses$19,170 Administrative expenses$9,124 The activity variance for net operating income in May would be closest to:o $1,044 Fo $1,044 Uo $214 Fo $214 U 13.Galante 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, Kennel budgeted for 3,900 tenant-days, but its actual level of activity was 3,880 tenant-days. Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:Data used in budgeting:Fixed elementper monthVariable element per tenant-day Revenueâ$30.40 Wages and salaries$2,900 $6.40 Food and supplies300 11.20 Facility expenses7,900 3.40 Administrative expenses 7,700 0.40 Total expenses$18,800 $21.40 Actual results for May: Revenue$107,680 Wages and salaries$23,490 Food and supplies$36,789 Facility expenses$19,240 Administrative expenses$9,138 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 May would be closest to:o $2,903 Fo $2,903 Uo $2,723 Uo $2,723 F 14.Lizana Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 4,300 client-visits, but its actual level of activity was 4,280 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for DecemberData used in budgeting:Fixed elementper monthVariable element per client visit Revenueâ$36.30 Personnel expenses$28,300 $12.30 Medical supplies1,200 6.30 Occupancy expenses10,200 1.00 Administrative expenses 7,300 0.40 Total expenses$47,000 $20.00 Actual results for December: Revenue$127,220 Personnel expenses$70,130 Medical supplies$21,114 Occupancy expenses$14,200 Administrative expenses$7,880 The activity variance for net operating income in December would be closest to:o $326 Uo $9,194 Fo $9,194 Uo $326 F 15.Lizana Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 3,200 client-visits, but its actual level of activity was 3,180 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for DecemberData used in budgeting:Fixed elementper monthVariable element per client-visit Revenueâ$35.20 Personnel expenses$27,200 $11.20 Medical supplies1,200 5.20 Occupancy expenses10,200 1.00 Administrative expenses 6,200 0.30 Total expenses$44,800 $17.70 Actual results for December: Revenue$124,670 Personnel expenses$72,020 Medical supplies$22,704 Occupancy expenses$14,620 Administrative expenses$8,125 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 December would be closest to:o $3,999 Uo $3,649 Uo $3,649 Fo $3,999 F 16.Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 7,500 units, but its actual level of activity was 7,450 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:Data used in budgeting:Fixedelementper monthVariable element per unit Revenueâ$35.00 Direct labor$0 $5.60 Direct materials0 13.00 Manufacturing overhead32,000 2.50 Selling and administrative expenses26,300 0.30 Total expenses$58,300 $21.40 Actual results for October: Revenue$261,850 Direct labor$41,800 Direct materials$99,895 Manufacturing overhead$47,500 Selling and administrative expenses$30,550 The direct labor in the planning budget for October would be closest to:o $41,800o $41,970o $41,720o $42,000 17.Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 7,400 units, but its actual level of activity was 7,350 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:Data used in budgeting:Fixed elementper monthVariable element per unit Revenueâ$34.90 Direct labor$0 $5.50 Direct materials0 13.40 Manufacturing overhead31,000 2.40 Selling and administrative expenses26,200 0.20 Total expenses$57,200 $21.50 Actual results for October: Revenue$257,800 Direct labor$39,870 Direct materials$99,890 Manufacturing overhead$47,000 Selling and administrative expenses$30,540 The direct materials in the flexible budget for October would be closest to:o $99,775o $100,620o $99,160o $98,490 18.Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 8,100 units, but its actual level of activity was 8,150 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:Data used in budgeting:Fixed elementper monthVariable element per unit Revenueâ$35.60 Direct labor$0 $6.20 Direct materials0 12.20 Manufacturing overhead38,000 1.90 Selling and administrative expenses26,900 0.20 Total expenses$64,900 $20.50 Actual results for October: Revenue$288,600 Direct labor$49,990 Direct materials$92,335 Manufacturing overhead$50,500 Selling and administrative expenses$30,610 The activity variance for direct labor in October would be closest to:o $230 Uo $310 Uo $230 Fo $310 F 19.Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 8,000 units, but its actual level of activity was 8,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:Data used in budgeting:Fixed elementper monthVariable element per unit Revenueâ$35.50 Direct labor$0 $6.10 Direct materials0 12.10 Manufacturing overhead37,000 1.80 Selling and administrative expenses26,800 0.80 Total expenses$63,800 $20.80 Actual results for October: Revenue$284,500 Direct labor$48,530 Direct materials$92,330 Manufacturing overhead$50,000 Selling and administrative expenses$30,600 The revenue variance in October would be closest to:o $1,275 Fo $1,275 Uo $500 Fo $500 U 20.Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 8,400 units, but its actual level of activity was 8,450 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:Data used in budgeting:Fixed elementper monthVariable elementper unit Revenue$35.90 Direct labor$0 $6.50 Direct materials0 11.90 Manufacturing overhead41,000 2.20 Selling and administrative expenses27,200 .50 Total expenses$ 68,200 $21.10 Actual results for October: Revenue$302,100 Direct labor$54,310 Direct materials$99,230 Manufacturing overhead$52,000 Selling and administrative expenses$30,640 The spending variance for direct materials in October would be closest to:o $730 Fo $1,325 Fo $1,325 Uo $730 U 21.Gourley Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,210 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:Fixed element per monthVariable element per client-visit Revenueâ$39.20 Personnel expenses$35,200 $10.40 Medical supplies1,200 7.20 Occupancy expenses8,200 1.20 Administrative expenses5,200 .30 Total expenses$49,800 $19.10 The activity variance for personnel expenses in August would be closest to:o $936 Fo $936 Uo $3,376 Fo $3,376 U22.Gourley Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 3,600 client-visits, but its actual level of activity was 3,520 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:Fixed element per monthVariable element per client-visit Revenueâ$39.80 Personnel expenses$35,800 $11.00 Medical supplies1,800 7.80 Occupancy expenses8,800 1.80 Administrative expenses5,800 0.9 Total expenses$52,200 $21.50 The activity variance for administrative expenses in August would be closest to:o $72 Uo $132 Uo $132 Fo $72 F 23.Gourley Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 4,050 client-visits, but its actual level of activity was 3,970 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:Fixed element per monthVariable element per client-visit Revenueâ$40.70 Personnel expenses$36,700 $11.90 Medical supplies2,700 8.70 Occupancy expenses9,700 2.70 Administrative expenses6,700 .90 Total expenses$55,800 $24.20 The activity variance for net operating income in August would be closest to:o $1,320 Uo $570 Uo $1,320 Fo $570 F24.Roye 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, Kennel budgeted for 4,300 tenant-days, but its actual level of activity was 4,340 tenant-days. Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for September:Data used in budgeting:Fixed elementper monthVariable element per tenant-day Revenueâ$35.20 Wages and salaries$3,200 $8.20 Food and supplies2,200 14.70 Facility expenses8,700 3.70 Administrative expenses 7,200 0.10 Total expenses$21,300 $26.70 Actual results for September: Revenue$140,230 Wages and salaries$28,620 Food and supplies$66,350 Facility expenses$24,110 Administrative expenses$7,102 The revenue variance for September would be closest to:o $12,538 Uo $12,538 Fo $11,130 Fo $11,130 U25.Roye 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, Kennel budgeted for 4,800 tenant-days, but its actual level of activity was 4,820 tenant-days. Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for September:Data used in budgeting:Fixed elementper monthVariable element per tenant-day Revenueâ$35.30 Wages and salaries$2,000 $8.70 Food and supplies1,200 15.20 Facility expenses7,600 4.20 Administrative expenses 7,700 0.60 Total expenses$18,500 $28.70 Actual results for September: Revenue$145,135 Wages and salaries$28,670 Food and supplies$75,065 Facility expenses$27,230 Administrative expenses$7,107 The spending variance for Food and supplies in September would be closest to:o $905 Fo $601 Fo $905 Uo $601 U26.Roye 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, Kennel budgeted for 3,700 tenant-days, but its actual level of activity was 3,740 tenant-days. Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for September:Data used in budgeting:Fixed elementper monthVariable element per tenant-day Revenueâ$34.60 Wages and salaries$2,600 $7.60 Food and supplies1,600 14.10 Facility expenses8,100 3.10 Administrative expenses 6,600 0.10 Total expenses$18,900 $24.90 Actual results for September: Revenue$125,356 Wages and salaries$28,560 Food and supplies$54,875 Facility expenses$19,150 Administrative expenses$7,096 The spending variance for facility expenses in September would be closest to:o $544 Fo $544 Uo $420 Fo $420 U 27.Roye 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, Kennel budgeted for 5,500 tenant-days, but its actual level of activity was 5,560 tenant-days. Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for September:Data used in budgeting:Fixed element per monthVariable element per tenant-day Revenueâ$36.00 Wages and salaries$2,700 $9.40 Food and supplies1,900 15.90 Facility expenses8,300 4.90 Administrative expenses 6,800 0.30 Total expenses$19,700 $30.50 Actual results for September: Revenue$179,235 Wages and salaries$28,740 Food and supplies$89,785 Facility expenses$35,875 Administrative expenses$7,114 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 September would be closest to:o $7,171 Uo $6,841 Fo $6,841 Uo $7,171 F28.Blockmon Hospital bases its budgets on patient-visits. The hospital’s static planning budget for November appears below: Budgeted number of patient-visits9,100 Budgeted variable costs: Supplies (@ $8.47 per patient-visit)$77,077 Laundry (@ $7.97 per patient-visit)72,527 Budgeted fixed costs: Wages and salaries98,600 Occupancy costs80,260 Total expense$328,464 Required:Prepare the flexible budget for 9,600 patient-visits per month. (Omit the “$” sign in your response.)Cost Formula(per patient-visit)Flexible Budget Based on 9,600 Patient-Visits Variable costs: Supplies$ 8.47 $ Laundry7.97 Fixed costs: Wages and salaries Occupancy costs Total expense$ 29.Zuehlke Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner’s budget for September was based on 3,500 meals, but the diner actually served 3,700 meals. The diner’s director has provided the following cost data to use in the budget: groceries, $4.65 per meal; kitchen operations, $5,500 per month plus $1.81 per meal; administrative expenses, $4,500 per month plus $0.46 per meal; and fundraising expenses, $2,500 per month. The director has also provided the diner’s statement of actual expenses for the month:Zuehlke Urban DinerStatement of ExpensesFor the Month Ended September 30 Actual meals3,700 Groceries$17,155 Kitchen operations12,000 Administrative expenses6,022 Fundraising expenses2,500 Total expense$37,677 Required:Prepare the report showing the activity variances for each of the expenses and for total expenses for September. (Input all amounts as positive values. Leave no cells blank – be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.) 30.value:21.00 pointsTajiri Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of May:Tajiri CorporationComparison of Planning Budget to Actual ResultsFor the Month Ended May 31PlanningBudgetActualResultsVariances Customers served21,000 22,000 Revenue (3.40q)$71,400 $75,200 $3,800 F Expenses: Wages and salaries ($22,100 + $1.11q)45,410 46,520 1,110 U Supplies ($0.51q)10,710 9,710 1,000 F Insurance ($4,000)4,000 4,000 0 Miscellaneous expense ($3,000 + $.31q)9,510 8,510 1,000 F Total expense69,630 68,740 890 F Net operating income$1,770 $6,460 $4,690 FRequired:1.Prepare the company’s flexible budget performance report for May. Label each variance as favorable (F) or unfavorable (U). (Input all amounts as positive values. Leave no cells blank – be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.) 31.Velazques 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:Fixed elementper monthVariable elementper guestVariable elementper jeep Revenue$0$91$0 Tour guide wages$0$0$107 Vehicle expenses$3,700$4$57 Administrative expenses$1,800$1$0In March, the company budgeted for 357 guests and 127 jeeps. The company’s income statement showing the actual results for the month appears below:Velazques Jeep ToursIncome StatementFor the Month Ended March 31 Actual guests354 Actual jeeps129 Revenue$32,154 Expenses: Tour guide wages13,553 Vehicle expenses12,589 Administrative expenses2,154 Total expense28,296 Net operating income$3,858 Required:Prepare a report showing the company’s activity variances for March. Label each variance as favorable (F) or unfavorable (U).(Input all amounts as positive values. Leave no cells blank – be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)
