General accounting Fussner Medical Clinic measures its activity in terms of patient visits.Last month, the budgeted level of activity was 1,540 patient visitsand the actual level of activity was 1,640 patient visits. The costformula for administrative expenses is $2.30 per patient visit plus$18,200 per month. The actual administrative expense was $22,625.Last month, the spending variance for administrative expenses was

Step 1: Definition of Spending VarianceSpending variance is the difference between the actual cost…

Answered: Fussner Medical Clinic measures its…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

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Chapter7: Budgeting

Section: Chapter Questions

Problem 8PB: Mesa Aquatics, Inc. estimated direct labor hours as 1,900 in quarter 1, 2,000 in quarter 2.2,200 in...

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Ramkissoon Midwifery's cost formula for its wages and salaries is $2,060 per month plus $442 per birth. For the month of July, the company planned for activity of 117 births, but the actual level of activity was 114 births. The actual wages and salaries for the month was $54,500. The spending variance for wages and salaries in July would be closest to:
Bade Midwifery's cost formula for its wages and salaries is $1,230 per month plus $240 per birth. For the month of October, the company planned for activity of 105 births, but the actual level of activity was 101 births. The actual wages and salaries for the month was $26,470. The activity variance for wages and salaries in October would be closest to:
Pittman Framing's cost formula for its supplies cost is $1,040 per month plus $14 per frame. For the month of November, the company planned for activity of 614 frames, but the actual level of activity was 604 frames. The actual supplies cost for the month was $9,200. The spending variance for supplies cost in November would be closest to:
Standahl 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 $39,590 per month plus $2,649 per flight plus $4 per passenger. The company expected its activity in August to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers. The actual cost for plane operating costs in August was $255,690. The activity variance for plane operating costs in August would be closest to: Multiple Choice $7,959 U $2,294 F $7,959 F $2,294 U
Hirons 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 $60,050 per month plus $3,270 per flight plus $13 per passenger. The company expected its activity in November to be 86 flights and 260 passengers, but the actual activity was 89 flights and 262 passengers. The actual cost for plane operating costs in November was $343,650. The spending variance for plane operating costs in November would be closest to:
Groupe 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 $36,210 per month plus $2,052 per flight plus $1 per passenger. The company expected its activity in October to be 81 flights and 231 passengers, but the actual activity was 80 flights and 236 passengers. The actual cost for plane operating costs in October was $196,000. The activity variance for plane operating costs in October would be closest to:
Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2,640 per month plus $47 per boat. For the month of April, the company planned for activity of 60 boats, but the actual level of activity was 14 boats. The actual cleaning equipment and supplies for the month was $3,420. The activity variance for cleaning equipment and supplies in April would be closest to:
Varriano Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 46,000 customers, but actually served 47,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting: Revenue Wages and salaries Supplies Insurance Miscellaneous expense Customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income Required: Prepare a report showing the company's activity variances for October. Indicate in each case whether the variance is 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.) Fixed element per month Flexible Budget $ 38,000 $0 $ 8,500 $ 8,000 Varriano Corporation Activity Variances For the Month Ended October 31 47,000 Planning Budget Variable element per…
Consider the following 2015 data for Newark General Hospital (in millions of dollars): Static Flexible Actual Budget Budget Results Revenues $4.7 $4.8 $4.5 Costs 4.1 4.1 4.2 Profits 0.6 0.7 0.3 a. Calculate and interpret the profit variance. b. Calculate and interpret the revenue variance. c. Calculate and interpret the cost variance. d. Calculate and interpret the volume and price variances on the revenue side. e. Calculate and interpret the volume and management variances on the cost side. f. How are the variances calculated above related?
Photo Framing's cost formula for its supplies cost is $1,190 per month plus $19 per frame. For the month of November, the company planned for activity of 617 frames, but the actual level of activity was 609 frames. The actual supplies cost for the month was $12,500. The variance for supplies cost in November would be
Vandall 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 7,300 units, but its actual level of activity was 7,340 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April The revenue variance for April would be closest to: A. $4,274 FB. $5,690 FC. $5,690 UD. $4,274 U 2. The spending variance for direct materials in April would be closest to: A. $210 UB. $210 FC. $426 UD. $426 F 3. The spending variance for manufacturing overhead in April would be closest to: A. $1,600 UB. $1,648 FC. $1,600 FD. $1,648 U 4. 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: A. $6,144 FB. $6,740 UC. $6,740 FD. $6,144 U Please show the…
An assisted living has actual total revenues of 1.68 million, expenses of 1 million in 2018. The budgeted revenue was 1.7 million and the budgeted expenses were 900,000. What is the net income for 2018? What is the revenue variance (in dollars or percentage) for 2018? What is the total margin for 2018?

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