1. Teel Printing uses two measures of activity, press runs and book set-ups, in the cost formulas in its budgets and performance reports. The cost formula for wages and salaries is $8,850 per month plus $400 per press run plus $950 per book set-up. The company expected its activity in July to be 204 press runs and 111 book set-ups, but the actual activity was 201 press runs and 110 book set-ups. The actual cost for wages and salaries in July was $193,780.
The activity variance for wages and salaries in July would be closest to:
$2,120 U
$2,150 U
$2,150 F
$2,120 F
2. 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:
|
Fixed Element per Month |
Variable element per client-visit |
||||
|
Revenue |
– |
$ |
40.00 |
||
|
Personnel expenses |
$ |
32,400 |
$ |
13.40 |
|
|
Medical supplies |
1,500 |
4.80 |
|||
|
Occupancy expenses |
9,100 |
2.10 |
|||
|
Administrative expenses |
6,700 |
0.40 |
|||
|
Total expenses |
$ |
49,700 |
$ |
20.70 |
|
Actual results for December:
|
Revenue |
$ |
134,170 |
|
|
Personnel expenses |
$ |
80,776 |
|
|
Medical supplies |
$ |
17,302 |
|
|
Occupancy expenses |
$ |
15,754 |
|
|
Administrative expenses |
$ |
8,296 |
|
The occupancy expenses in the flexible budget for December would be closest to:
Garrison 16e Rechecks 2017-10-31
$16,114
$15,565
$15,945
$16,030
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