1.

Karmazyn Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below:

Budgeted number of patient-visits	8,600
Budgeted variable costs:
Supplies (@ $8.70 per patient-visit)	$ 74,820
Laundry (@ $8.40 per patient-visit)	72,240
Total variable cost	147,060
Budgeted fixed costs:
Wages and salaries	99,660
Occupancy costs	107,660
Total fixed cost	207,320
Total cost	$354,380

The total variable cost at the activity level of 8,700 patient-visits per month should be:

a. $207,320

b. $148,770

c. $147,060

d. $209,650 2.

Cadavieco Detailing's cost formula for its materials and supplies is $1,850 per month plus $4 per vehicle. For the month of November, the company planned for activity of 80 vehicles, but the actual level of activity was 45 vehicles. The actual materials and supplies for the month was $2,000.

The materials and supplies in the planning budget for November would be closest to:

a. $2,030

b. $2,170

c. $3,761

d. $2,000 3.

Cadavieco Detailing's cost formula for its materials and supplies is $1,860 per month plus $5 per vehicle. For the month of November, the company planned for activity of 81 vehicles, but the actual level of activity was 46 vehicles. The actual materials and supplies for the month was $2,150.

The materials and supplies in the flexible budget for November would be closest to:

a. $1,225

b. $2,265

c. $2,150

d. $2,090

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 4,400 tenant-days, but its actual level of activity was 4,380 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 month	Variable element per tenant-day
Revenue		$30.90
Wages and salaries	$3,400	$6.90
Food and supplies	800	11.70
Facility expenses	8,400	3.90
Administrative expenses	8,200	0.30
Total expenses	$20,800	$22.80

Actual results for May:

Revenue	$108,180
Wages and salaries	$23,540
Food and supplies	$36,794
Facility expenses	$19,290
Administrative expenses	$9,148

The net operating income in the planning budget for May would be closest to:

a. $14,840

b. $14,678

c. $19,314

d. $19,408