1 During June, Tarras Corporation plans to serve 52,000 customers The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served Revenue $4 53q Wages and salaries $35,200 $1 73q Supplies $0 93q Insurance $21,000 Miscellaneous expense $6,200 $0 63q Required Prepare the company's planning budget for June 2 Rhed 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 4,050 tenant days, but its actual level of activity was 4,000 tenant days The kennel 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 tenant day Revenue $ 34 60 Wages and salaries $ 2,900 $ 8 40 Food and supplies 1,750 13 60 Facility expenses 8,900 5 10 Administrative expenses 6,900 0 30 Total expenses $ 20,450 $ 27 40 Actual results for December Revenue $ 137,765 Wages and salaries $ 36,780 Food and supplies $ 55,085 Facility expenses $ 29,435 Administrative expenses $ 7,865 The activity variance for administrative expenses in December would be closest to 3 Rients Corporation is a service company that measures its output by the number of customers served The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for October Fixed Element per Month Variable Element per Customer Served Actual Total for October Revenue $ 4,100 $ 182,900 Employee salaries and wages $ 42,300 $ 1,300 $ 98,800 Travel expenses $ 700 $ 30,500 Other expenses $ 31,500 $ 31,900 When the company prepared its planning budget at the beginning of October, it assumed that 39 customers would have been served However, 44 customers were actually served during October The spending variance for Other expenses for October would have been closest to

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1. During June, Tarras Corporation plans to serve 52,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is

1. During June, Tarras Corporation plans to serve 52,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:

Revenue: $4.53q

Wages and salaries: $35,200 + $1.73q

Supplies: $0.93q

Insurance: $21,000

Miscellaneous expense: $6,200 + $0.63q

Required:

Prepare the company's planning budget for June.

2. Rhed 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 4,050 tenant-days, but its actual level of activity was 4,000 tenant-days. The kennel 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 tenant-day
Revenue		-	$	34.60

Wages and salaries	$	2,900	$	8.40
Food and supplies		1,750		13.60
Facility expenses		8,900		5.10
Administrative expenses		6,900		0.30
Total expenses	$	20,450	$	27.40

Actual results for December:


Revenue	$	137,765
Wages and salaries	$	36,780
Food and supplies	$	55,085
Facility expenses	$	29,435
Administrative expenses	$	7,865

The activity variance for administrative expenses in December would be closest to:

3. Rients Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for October.

	Fixed Element per Month		Variable Element per Customer Served		Actual Total for October
Revenue			$	4,100	$	182,900
Employee salaries and wages	$	42,300	$	1,300	$	98,800
Travel expenses			$	700	$	30,500
Other expenses	$	31,500			$	31,900

When the company prepared its planning budget at the beginning of October, it assumed that 39 customers would have been served. However, 44 customers were actually served during October.

The spending variance for Other expenses for October would have been closest to: