Gordin 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, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 3,020 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Fixed element per Variable element month per tenant-day $ 27.60 $ 5.20 Revenue Wages and salaries Food and supplies $ 2,000 800 10.20 Facility expenses Administrative expenses 8,500 3.70 6,000 0.10 Total expenses $ 17,300 $ 19.20 Actual results for May: $ 86,322 $ 17,984 $ 32,444 $ 19,554 $ 6,162 Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses The activity variance for administrative expenses in May would be closest to:

Gordin 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, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 3,020 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Fixed element per Variable element month per tenant-day $ 27.60 $ 5.20 Revenue Wages and salaries Food and supplies $ 2,000 800 10.20 Facility expenses Administrative expenses 8,500 3.70 6,000 0.10 Total expenses $ 17,300 $ 19.20 Actual results for May: $ 86,322 $ 17,984 $ 32,444 $ 19,554 $ 6,162 Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses The activity variance for administrative expenses in May 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

See similar textbooks

Similar questions

Use the following information for Questions 16 & 17 Ibsen Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,340 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: Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expenses Actual results for December: Revenue Personnel expenses Medical supplies 16. $ 134,170 $ 80,776 $ 17,302 Occupancy expenses $ 15,754 Administrative expenses$ 8,296 17. C. d. Fixed element per month a. b. $0 $ 32,400 $76,620 $77,156 $79,809 $80,776 C. d. 1,500 9,100 6,700 $ 49,700 The personnel expenses in the flexible budget for December would be closest to: a. b. Variable element per client-visit $ 40.00 $13.40 4.80 2.10 0.40 $ 20.70 The net operating income in the flexible budget for December would be closest…
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.)
Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting: Revenue Faculty wages Course supplies Administrative expenses Actual students Actual courses Revenue Expenses: Faculty wages Course supplies Administrative expenses Total expense Net operating income In March, the school budgeted for 1,720 students and 69 courses. The school's income statement showing the actual results for the month appears below: Roberds Tech Income Statement For the Month Ended March 31 Students Courses Revenue Expenses: Fixed element per month Faculty wages Course supplies Administrative expenses $0 $0 $0 $ 25,550 Total expense Net operating income Variable element per student $203 $0 $33 Required: Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for March. Label each variance as…
We discuss how to prepare the different component budgets of theoperating budget, including the sales, production, direct materials,direct labor, manufacturing overhead, cost of goods sold, andselling and administrative expense budgets. We also discuss howto use information from all of these operating budgets to prepare abudgeted income statement. Knowledge Check 05WellWheats, Inc. produces breakfast cereal and sells each box, or unit, for $7.The company is projecting sales of 1,000 units for the month of March. The totalcost of producing one unit includes $2 for direct materials, $1 for direct labor,and $0.50 for manufacturing overhead.Calculate the cost of goods sold for the month of March.
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
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
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:
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
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:
Grohs 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 2,500 tenant-days, but its actual level of activity was 2,530 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: Fixed Element per Month Variable element per tenant-day Revenue $ 0 $33.00 Wages and salaries $ 3,800 $ 7.90 Food and supplies 1,000 11.60 Facility expenses 8,600 2.20 Administrative expenses 6,200 0.20 Total expenses $19,600 $21.90 The net operating income in the planning budget for December would be closest to: Multiple Choice A. $8,150 B. $11,914 C. $8,483 D. $11,633
None