Help SaPaulis 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 February, the kennel budgeted for 4.600 tenant-days, but itactual level of activity was 4,580 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for FebruaryData used in budgeting:RevenueWages and salariesFood and suppliesFacility expensesAdministrative expensesTotal expensesActual results for February:RevenueWages and salariesFood and suppliesFacility expensesAdministrative expensesFixed element per Variable elementmonth$ 0per tenant-day$ 31.10$ 3,600200$ 7.1011.904.100.508,6008,400$ 20,800$ 23.60$ 108,380$ 23,560$ 36,796$ 19,310$ 9,152The overall revenue and spending variance (ie., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for February would beclosest to:Multiple Choice$6,012 F

Step 1:Computation of the net operating income under the flexible budget: Alternatively,Net…

Answered: Help Sa Paulis Kennel uses tenant-days…

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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Hemphill Corporation uses customers served as its measure of activity. During June, the company budgeted for 20,000 customers, but actually served 19,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June:Data used in budgeting: Fixed amount per month Variable amount per customer Revenue - $4.50 Wages and salaries $23,900 $1.40 Supplies $0 $0.80 Insurance $5,700 $0.00 Miscellaneous $5,000 $0.40 Actual results for June: Revenue $85,400 Wages and Salaries $52,700 Supplies $17,500 Insurance $5,500 Miscellaneous $12,200 Calculate revenue variance, spending variance for wages and salaries, and spending variance for insurance. Label them as favorable or unfavorable. Please show your workings
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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: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Actual results for May: Multiple Choice Revenue $ 86,322 Wages and salaries $ 17,984 Food and supplies $ 32,444 Facility expenses $ 19,554 Administrative expenses $ 6,162 The spending variance for food and supplies in May would be closest to: O $840 U O Fixed element per month $0 $ 2,000 $840 F 800 8,500 6,000 $ 17,300 Variable element per tenant-day $ 27.60 $ 5.20 10.20 3.70 0.10 $19.20
KK ENTERPRISE was set up by a man and his with some few years ago. The trade in a lot of products. They don’t have enough knowledge in accounting for decision making. They need professional assistance to prepare budgets for the period October to December 2020. The following information has been provided to assist in the budgeting process: · Budgeted monthly sales revenue for 2020 is as follows: October GH¢ 40,000, November GH¢ 70,000, December GH¢ 50,000, January 2018 45,000. Sales are 20% cash and 80% credit. Credit sales are collected over a three- month period, 15% in the month of sale, 70% in the month following sale and 15% in the second month following sale. Total sales revenue in August amounts to GH¢30,000 and September’s total sales revenue amounts to GH¢36,000. Cost of sales is expected to amount to 60% of sales revenue each month. The business maintains its closing inventory levels at 75% of the following month’s cost of sales. Inventory at the beginning of October is…
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances: Cash $ 43,000 Accounts receivable 202,400 Inventory 58,200 Buildings and equipment (net) 353,000 Accounts payable $ 86,025 Common stock 500,000 Retained earnings 70,575 $ 656,600 $ 656,600 Actual sales for December and budgeted sales for the next four months are as follows: December(actual) $ 253,000 January $ 388,000 February $ 585,000 March $ 299,000 April $ 196,000 Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales. The company’s gross margin is…
Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 36.100 customers, but actually served 27.900 customers. The company uses the following revenue and cost formules in its budgeting, where is the number of customers served: Revenue: $4.60q Wages and salaries: $34,300+ $1.43q Supplies: $0.83q Insurance: $11,500 Miscellaneous expenses: $7,500 + $0.41q The company reported the following actual results for February: $ 141,800 $ 69,100 $ 15,500 $ 11,500 $ 23,200 Revenue Wages and salaries Supplies Insurance Miscellaneous expense Required: Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values. Customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous…
Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 4,000 client-visits, but its actual level of activity was 3,990 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November. Data used in budgeting: Revenue Personnel expenses Medical supplies occupancy expenses Administrative expenses Total expenses Actual results for November: Revenue Personnel expenses Medical supplies occupancy expenses Administrative expenses Multiple Choice $832 F $832 U $760 U Fixed element Variable element per per month client-visit $36.80 The spending varlance for medical supplies in November would be closest to: $760 F $30,900 1,900 9,000 7,300 $49,100 $147,032 $ 77,944 $ 31,460 $ 21,673 $ 7,859 $11.80 7.20 3.30 0.20 $22.50
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances: Cash $ 64,000 Accounts receivable 219,200 Inventory 61,350 Buildings and equipment (net) 374,000 Accounts payable $ 92,325 Common stock 500,000 Retained earnings 126,225 $ 718,550 $ 718,550 Actual sales for December and budgeted sales for the next four months are as follows: December(actual) $ 274,000 January $ 409,000 February $ 606,000 March $ 321,000 April $ 217,000 Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales. The company’s gross margin is…
Mayo Clinic uses patient-visits as its measure of activity. During September, the clinic budgeted for 3,000 patient-visits, but its actual level of activity was 2,900 patient-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: Revenue Personnel expenses Medical supplies. Occupancy expenses. Administrative expenses.. Actual results for September: Revenue Personnel expenses. Medical supplies. Occupancy expenses. Administrative expenses..... Fixed element per month $27,600 $1,500 $6,200 $3,600 $105,010 $61,020 $22,120 $10,930 $4,570 Variable element per patient-visit $37.20 $11.30 $6.80 $1.70 $0.30 Compute the total Revenue variance (due to a difference in the actual amount collected per customer from expected). State answer as a positive.
Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4,000 client-visits, but its actual level of activity was 3,980 client-visits. The clinic 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 month Variable element per client-visit Revenue - $ 36.00 Personnel expenses $ 28,000 $ 12.00 Medical supplies 2,000 6.00 Occupancy expenses 11,000 1.00 Administrative expenses 7,000 0.10 Total expenses $ 48,000 $ 19.10 Actual results for January: Revenue $ 124,750 Personnel expenses $ 70,500 Medical supplies $ 21,050 Occupancy expenses $ 14,000 Administrative expenses $ 7,850 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…
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances: Debits Credits Cash $ 44,000 Accounts receivable 203,200 Inventory 58,350 Buildings and equipment (net) 354,000 Accounts payable $ 86,325 Common stock 500,000 Retained earnings 73,225 $ 659,550 $ 659,550 Actual sales for December and budgeted sales for the next four months are as follows: December(actual) $ 254,000 January $ 389,000 February $ 586,000 March $ 300,000 April $ 197,000 Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales. The…

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