The spending variance for occupancy expenses in September would be closest to:Multiple Choice$106 U$10 F$10 U$106 F Bracken Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,140 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for September:Data used in budgeting:FixedVariableelementelement perper month client-visit$ 44.50$ 12.60RevenuePersonnel expenses$ 26,100Medical supplies6007.20Occupancy expensesן50 ,62.40Administrative expenses3,1000.10Total expenses$ 36,300$ 22.30Actual results for September:$ 93,240$ 50,754$ 15,328$ 11,646$ 3,394RevenuePersonnel expensesMedical suppliesOccupancy expensesAdministrative expensesThe spending variance for occupancy expenses in September would be closest to:

Occupancy Expense for Flexible Budget will be as follows Formula = fixed element of occupancy +…

Bracken Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,140 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for September: Data used in budgeting: Fixed Variable element per per month client-visit $ 44.50 $ 12.60 element Revenue Personnel expenses $ 26,100 Medical supplies 600 7.20 6,500 2.40 Occupancy expenses Administrative expenses 3,100 0.10 Total expenses $ 36,300 $ 22.30 Actual results for September $ 93,240 $ 50,754 $ 15,328 $ 11,646 $ 3,394 Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses The spending variance for occupancy expenses in September would be closest to:

Bracken Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,140 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for September: Data used in budgeting: Fixed Variable element per per month client-visit $ 44.50 $ 12.60 element Revenue Personnel expenses $ 26,100 Medical supplies 600 7.20 6,500 2.40 Occupancy expenses Administrative expenses 3,100 0.10 Total expenses $ 36,300 $ 22.30 Actual results for September $ 93,240 $ 50,754 $ 15,328 $ 11,646 $ 3,394 Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses The spending variance for occupancy expenses in September would be closest to:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bickel 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 November: Bickel Corporation - Comparison of Actual Results to Planning Budget For the Month Ended November 30 Customers served Revenue ($3.504) Expenses: Mages and salaries ($24,200 $1.324) Supplies ($0.729) Insurance ($6,100) Miscellaneous expense (55,100 50.410) Total expense Net operating income Actual Results 43,000 $150,300 80,960 28,840 6,100 20,920 136,820 $ 11,400 Planning Budget 42,000 $147,000 79,640 30,240 6,100 22,320 138,300 $1,700 Variances $3,300 F 1,320 U 1,400 F 0 None 1,400 F 1,480 F $4,780 F Required: Prepare the company's Comprehensive Performance Report for November. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance), Input all amounts as positive values.)
Casper Hospital bases its budgets on patient-visits. The hospital's static planning budget for May appears below: The budgeted number of patient-visits 5,100 Budgeted variable costs: Supplies (@ $2.70 per patient-visit) $ 13,770 Laundry (@ $3.00 per patient-visit) 15,300 Budgeted fixed costs: Wages and salaries 16,830 Occupancy costs 16,890 Total expense $ 62,790 Required: Prepare a flexible budget for 6,000 patient-visits per month.
Far East Inc., is a merchandising company that sells school supplies. The company is planning its cash needs for the third quarter. The following information has been assembled to assist in preparing a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for July-October are as follows: July August September October Sales $36,000 $66,000 $64,000 $41,000 Cost of goods sold 21,000 _39,000 27,000 24,000 Gross margin 15,000 27,000 37,000 17,000 Selling and administrative expenses: Selling expense 6,300 10,500 8,600 8,100 Administrative expense" 3,300 6,300 6,700 6,100 Total selling and administrative expenses 9,600 16,800 15,300 14,200 Net operating income $ 5,400 $10,200 $21,700 $ 2,800 *Includes $1,500 depreciation each month. b. Sales are 20% for cash and 80% on credit. c. Credit sales are collected over a three-month period with 20% collected in the month of sale, 50% in the month following sale, and 30% in the second month following sale. May sales…
2-55:56 Dinham 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 3,900 tenant-days, but its actual level of activity was 3,920 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: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Actual results for March: Revenue Wages and salaries. Food and supplies Facility expenses Administrative expenses Multiple Choice $685 F Fixed element per month $399 F $0 $ 2,800 1,800 8,300 6,800 $ 19,700 The spending variance for food and supplies in March would be closest to: $ 128,321 $ 28,580 $58,255 $ 20,980 $7,098 Variable element per tenant-day $34.80 $ 7.80 14.30 3.30 0.30 $25.70
Here are the 2015 revenues for the Wendover Group Practice Association for four different budgets (in thousands of dollars): Static Budget Flexible (Enrollment/ Flexible (Enrollment) Actual Utilization) Budget Budget Results $425 $200 $180 $300 a. What do the budget data tell you about the nature of Wendover's patients: Are they capitated or fee-for-service? (Hint: See the note to Exhibit 8.7.) b. Calculate and interpret the following variances: Revenue variance . Volume variance • Price variance Enrollment variance Utilization variance
Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 4,100 client-visits, but its actual level of activity was 4,030 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Fixed element per month Variable element per client-visit Revenue - $ 44.70 Personnel expenses $ 35,900 $ 13.30 Medical supplies 1,600 5.30 Occupancy expenses 11,600 2.20 Administrative expenses 5,400 0.20 Total expenses $ 54,500 $ 21.00 Actual results for December: Revenue $ 178,885 Personnel expenses $ 88,515 Medical supplies $ 22,515 Occupancy expenses $ 19,960 Administrative expenses $ 6,290 The activity variance for administrative expenses in December would be closest to:
None
A manager is preparing a revenue budget for next month. The following is the manager’s current month actual operating results. ACTUAL OPERATING RESULTS CURRENT MONTH Revenue Source Number of Guests Average Sale per Guest Sales Restaurant 3492 $20.50 $71,586 Lounge 515 $12.00 $ 6,180 Banquet room 388 $28.50 $11,058 Total 4395 $20.21 $88,824 Create the revenue forecast for next month based on the following assumptions. Restaurant guest counts will be 3,600 with an average sale per guest of $21.00. Lounge guests to be served are estimated at 525 with a 10 percent increase in average sale per guest. The banquet room will serve 425 customers and generate $12,750 in sales. NEXT MONTH BUDGET Revenue Source Number of Guests Average Sale per Guest Sales Restaurant 3,600.00 ? ? Lounge ? ? ? Banquet room ? ? ? Total ? ? ? What will be the manager’s revenue forecast for next month?…
Sharifi Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below: Budgeted number of patient-visits Budgeted variable overhead costs: Supplies (@$6.00 per patient-visit) Laundry (@$9.00 per patient-visit) Total variable overhead cost Budgeted fixed overhead costs: Wages and salaries Occupancy costs Total fixed overhead cost. Total budgeted overhead cost Multiple Choice The total overhead cost at an activity level of 8,400 patient-visits per month should be: O $280,800 $270,300 $267,900 7,700 $ 46,200 69,300 115,500 $257,400 54,900 87,000 141,900 $ 257,400
Dinham 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 3,400 tenant-days, but its actual level of activity was 3,460 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: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Actual results for March: Fixed Variable element per element per month tenant-day $0 $ 34.30 $ 2,300 $ 7.30 1,300 13.80 7,800 6,300 $ 17,700 2.80 0.40 $ 24.30 Revenue $ 115,625 Wages and salaries $ 28,530 Food and supplies $ 49,580 Facility expenses $ 16,500 Administrative expenses $ 7,093 The spending variance for facility expenses in March would be closest to:
Annie's Homemade is preparing a planning budget for August. Its budgeted revenue per serving is $5.00. It has identified two cost drivers-number of servings and number of labor-hours. The company expects to sell 10,800 servings and to staff 700 employee labor-hours in August. Data concerning the company's cost formulas are shown below: Ingredients expense Salaries and wages expense Franchise fee Credit card processing fees Utilities expense $ 300 Rent expense $ 3,000 Equipment depreciation expense $1,750 Other expenses $4,200 Required: Prepare a planning budget for August. Budgeted servings Budgeted labor-hours Revenue Expenses: Fixed Cost Cost per Per Month $ 7,000 Ingredients expense Salaries and wages expense Franchise fee Credit card processing fees Utilities expense Rent expense Equipment depreciation expense Other expenses Total expense Net operating income $ Serving $ 1.25 $ 0.25 $ 0.09 $ 0.02 0 Cost per Labor-Hour $ 8.00
Helen is working on her department's budgeted annual income statement. In the process, she needs to determine the budgeted amount for selling, general, and administrative (SG&A) expenses in order to complete her budget. Sales Variable SG&A cost 11500 units $0.20 per unit Advertising expense $6200 per year Depreciation on office equipment $8600 per year Other fixed SG&A costs $24800 On the basis of the given data, what are total budgeted selling, general, and administrative (SG&A) expenses of the department? ○ $35700 O $33300 O $17100 O $41900