1.

Lizana Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 5,200 client-visits, but its actual level of activity was 5,220 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		$37.20
Personnel expenses	$29,200	$13.20
Medical supplies	1,500	7.20
Occupancy expenses	10,200	1.00
Administrative expenses	6,700	0.30
Total expenses	$47,600	$21.70

Actual results for December:

Revenue	$150,200
Personnel expenses	$70,080
Medical supplies	$20,224
Occupancy expenses	$14,090
Administrative expenses	$7,570

The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for December would be closest to:

$4,926 F

$5,236 U

$5,236 F

$4,926 U 2.

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 4,500 tenant-days, but its actual level of activity was 4,480 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		$31.00
Wages and salaries	$3,500	$7.00
Food and supplies	900	11.80
Facility expenses	8,500	4.00
Administrative expenses	8,300	0.40
Total expenses	$21,200	$23.20

Actual results for May:

Revenue	$108,280
Wages and salaries	$23,550
Food and supplies	$36,795
Facility expenses	$19,300
Administrative expenses	$9,150

The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for May would be closest to:

$5,741 U

$5,585 F

$5,741 F

$5,585 U 3.

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 5,000 tenant-days, but its actual level of activity was 5,020 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		$31.50
Wages and salaries	$4,000	$7.50
Food and supplies	600	12.30
Facility expenses	9,000	4.50
Administrative expenses	8,800	0.30
Total expenses	$22,400	$24.60

Actual results for May:

Revenue	$108,780
Wages and salaries	$23,600
Food and supplies	$36,800
Facility expenses	$19,350
Administrative expenses	$9,160

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

$12,238

$12,100

$19,776

$19,870 4.

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:

$14,678

$19,314

$19,408

$14,840 5.

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:

$2,265

$2,150

$1,225

$2,090