Galante 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, Kennel budgeted for 3,200 tenant-days, but its actual level of activity was 3,180 tenant-days. 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 monthVariable element per tenant-day
Revenue—$29.70
Wages and salaries$2,200 $5.70
Food and supplies400 10.50
Facility expenses7,200 2.70
Administrative expenses 7,000 0.10
Total expenses$16,800 $19.00
Actual results for May:
Revenue$106,980
Wages and salaries$23,420
Food and supplies$36,782
Facility expenses$19,170
Administrative expenses$9,124
The net operating income in the planning budget for May would be closest to:
$18,484
$17,226
$18,390
$17,440
Ingrum Framing's cost formula for its supplies cost is $1,140 per month plus $14 per frame. For the month of June, the company planned for activity of 612 frames, but the actual level of activity was 604 frames. The actual supplies cost for the month was $9,940. The spending variance for supplies cost in June would be closest to:
$232 U
$232 F
$344 F
$344 u
Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 7,100 units, but its actual level of activity was 7,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:
Data used in budgeting:
Fixed element
per monthVariable element
per unit
Revenue $34.60
Direct labor$0 $6.60
Direct materials0 13.10
Manufacturing overhead41,000 2.10
Selling and administrative expenses25,900 .60
Total expenses$ 66,900 $22.40
Actual results for October:
Revenue$244,930
Direct labor$46,320
Direct materials$93,535
Manufacturing overhead$45,500
Selling and administrative expenses$30,510
The spending variance for direct materials in October would be closest to:
$525 U
$1,180 U
$1,180 F
$525 F
Paradiso Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,170 patient-visits and the actual level of activity was 1,160 patient-visits. The cost formula for administrative expenses is $4.10 per patient-visit plus $22,500 per month. The actual administrative expense was $22,600. In the clinic's flexible budget performance report for last month, the spending variance for administrative expenses was:
$4,656 F
$1,870 U
$41 F
$4,697 F
Roye 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 September, Kennel budgeted for 5,000 tenant-days, but its actual level of activity was 5,030 tenant-days. Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for September:
Data used in budgeting:
Fixed element
per monthVariable element per tenant-day
Revenue—$35.50
Wages and salaries$2,200 $8.90
Food and supplies1,400 15.40
Facility expenses7,800 4.40
Administrative expenses 6,300 0.20
Total expenses$17,700 $28.90
Actual results for September:
Revenue$151,125
Wages and salaries$28,690
Food and supplies$79,225
Facility expenses$29,130
Administrative expenses$7,109
The revenue variance for September would be closest to:
$26,375 F
$26,375 U
$27,440 F
$27,440 U
