I won't to this question answer general Accounting Fussner Medical Clinic measures its activity in terms ofpatient visits. Last month, the budgeted level ofactivity was 1,540 patient visits and the actual level ofactivity was 1,640 patient visits. The cost formula foradministrative expenses is $2.30 per patient visit plus$18,200 per month. The actual administrative expensewas $22,625.Last month, the spending variance for administrativeexpenses was

Step 1: Define Spending VarianceSpending variance can be defined as the difference between the…

Answered: Fussner Medical Clinic measures its…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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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Speyer Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,110 patient-visits and the actual level of activity was 1,100 patient-visits. The cost formula for administrative expenses is $3.50 per patient-visit plus $19,500 per month. The actual administrative expense was $20,800. In the clinic's flexible budget performance report for last month, the spending variance for administrative expenses was:
During November, Guerreiro Clinic budgeted for 5,000 patient-visits, but its actual level of activity was 5,300 patient-visits. Revenue should be $50.00 per patient-visit. Occupancy expenses should be $15,000 per month plus $0.75 per patient-visit. Actual occupancy expenses were $18,000. 1. What is the spending variance for occupancy expenses (provide a dollár amount)? 2. Is the spending variance for occupancy expenses favorable or unfavorable? Enter your answers in the same order as above.
During October, Keliihoomalu Clinic budgeted for 2,700 patient-visits, but its actual level of activity was 2,200 patient-visits. Revenue should be $27.30 per patient-visit. Personnel expenses should be $21,100 per month plus $6.80 per patient-visit. Medical supplies should be $500 per month plus $4.90 per patient-visit. Occupancy expenses should be $5,700 per month plus $0.90 per patient-visit. Administrative expenses should be $3,700 per month plus $0.40 per patient-visit. Required: Prepare the clinic's flexible budget for October based on the actual level of activity for the month. What is net operating income per the flex budget?
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:
Benson Memorial hospital cost formula for its wages and salaries is $2,030 per month plus $409 per birth. For the month of December, the hospital planned for activity of 112 births, but the actual level of activity was 114 births. The actual wages and salaries for the month was $50,800. The wages and salaries in the planning budget for December would be closest to: ○ $50,800 $47,838 $49,707 $48,656
tour company uses two measures of activity, routes and passengers in its cost formulas used for budgeting and performance evaluation. The cost formula for tour operating costs is $56,880 per month plus $2,880 per route plus $15 per passenger. The company expected in August to perform 90 routes and serve 256 passengers, but the actual activity was 96 routes and 263 passengers. The actual tour operating costs in August was $305,100. The spending variance for tour operating costs in August would be closest to: Multiple Choice $32,205 Unfavorable $32,205 Favorable $14,820 Unfavorable $17,385 Favorable $14,820 Favorable O O O
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:
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 4,800 tenant-days, but its actual level of activity was 4,820 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: Fixed Variable element element per per month tenant-day Revenue $35.30 $ 2,000 Wages and salaries Food and supplies $ 8.70 1,200 15.20 Facility expenses Administrative expenses 7,600 4.20 7,700 0.60 Total expenses $18,500 $28.70 Actual results for March: Revenue $145,135 Wages and salaries Food and supplies Facility expenses $ 28,670 $ 75,065 $ 27,230 $ 7,107 Administrative expenses The spending variance for food and supplies in March 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:
Tessmer 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 3,100 tenant-days, but its actual level of activity was 3,090 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: Fixed Element per Variable element per Month tenant-day Revenue $ 0 $ 3,500 $33.60 Wages and salaries Food and supplies Facility expenses $ 7.40 500 10.50 9,500 4.70 Administrative expenses 6,600 0.30 Total expenses $20,100 $22.90 Actual results for January: Revenue $105,934 $ 27,186 $ 32,485 $ 24,873 $ 7,557 Wages and salaries Food and supplies Facility expenses Administrative expenses The net operating income in the flexible budget for January would be closest to:
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 5,400 tenant-days, but its actual level of activity was 5,450 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: Fixed element per month Variable element per tenant-day Revenue - $ 35.90 Wages and salaries $ 2,600 $ 9.30 Food and supplies 1,800 15.80 Facility expenses 8,200 4.80 Administrative expenses 6,700 0.60 Total expenses $ 19,300 $ 30.50 Actual results for March: Revenue $ 172,325 Wages and salaries $ 28,730 Food and supplies $ 87,530 Facility expenses $ 34,975 Administrative expenses $ 7,113 The revenue variance for March would be closest to: Multiple Choice $21,535 U $21,535 F $23,330 F…
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 4,500 tenant-days, but its actual level of activity was 4,560 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: Fixed element per month Variable element per tenant-day Revenue 0 $ 35.00 Wages and salaries $ 3,400 $ 8.40 Food and supplies 2,400 14.90 Facility expenses 8,900 3.90 Administrative expenses 7,400 0.30 Total expenses $ 22,100 $ 27.50 Actual results for March: Revenue $ 142,130 Wages and salaries $ 28,640 Food and supplies $ 71,025 Facility expenses $ 26,125 Administrative expenses $ 7,104 The spending variance for food and supplies in March would be closest to:

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