Fussner Medical Clinic measures its activity in terms of patient visits. Last month, the budgeted level of activity was 1,540 patient visits and the actual level of activity was 1,640 patient visits. The cost formula for administrative expenses is $2.30 per patient visit plus $18,200 per month. The actual administrative expense was $22,625. Last month, the spending variance for administrative expenses was

Fussner Medical Clinic measures its activity in terms of patient visits. Last month, the budgeted level of activity was 1,540 patient visits and the actual level of activity was 1,640 patient visits. The cost formula for administrative expenses is $2.30 per patient visit plus $18,200 per month. The actual administrative expense was $22,625. Last month, the spending variance for administrative expenses was

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 1BE: At the beginning of the period, the Fabricating Department budgeted direct labor of 72,000 and...

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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:
Bade Midwifery's cost formula for its wages and salaries is $1,230 per month plus $240 per birth. For the month of October, the company planned for activity of 105 births, but the actual level of activity was 101 births. The actual wages and salaries for the month was $26,470. The activity variance for wages and salaries in October would be closest to:
Aquarium Inc uses the number of museum visits as its measure of activity. During May, the company budgeted for 4,040 museum visits, but its actual level of activity was 4,200 museum visits. Revenue is variable and is $25 per museum visit. Actual revenue for May was $108,000. The revenue variance for May would be closest to: A. B. OC. D. $3,000 unfavorable $3,000 favorable $7,000 unfavorable $7,000 favorable
Harville Midwifery's cost formula for its wages and salaries is $1,610 per month plus $199 per birth. For the month of March, the company planned for activity of 118 births, but the actual level of activity was 122 births. The actual wages and salaries for the month was $25,430. The spending variance for wages and salaries in March would be closest to: Select one: a. $458 F b. $338 U c. $458 U d. $338 F
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 $56,860 per month plus $2,880 per route plus $14 per passenger. The company expected in August to perform 87 routes and serve 257 passengers, but the actual activity was 98 routes and 264 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 . $37,696 Unfavorable C $37,696 Favorable $5,918 Unfavorable $5,918 Favorable $31,778 Favorable . . C
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
An accountancy practice had an overhead budget of $21,060 for a period. Actual overhead expenditure in the period was $21,720. Overheads are absorbed on the basis of client hours worked which totalled 2,375 in the period and resulted in under-absorption of $345. What was the budgeted overhead absorption rate per client hour?
Pittman Framing's cost formula for its supplies cost is $1,040 per month plus $14 per frame. For the month of November, the company planned for activity of 614 frames, but the actual level of activity was 604 frames. The actual supplies cost for the month was $9,200. The spending variance for supplies cost in November would be closest to:
Standahl 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 $39,590 per month plus $2,649 per flight plus $4 per passenger. The company expected its activity in August to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers. The actual cost for plane operating costs in August was $255,690. The activity variance for plane operating costs in August would be closest to: Multiple Choice $7,959 U $2,294 F $7,959 F $2,294 U
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:
3,560 tenant - days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting: Actual results for February: The revenue variance for February would be closest to: $ 785 US 11,881 U $ 1,063 U $ 1,063 F