1. Schriever Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes.

	Fixed element per month			Variable Element per Well Serviced
Revenue				$	4,500
Employee salaries and wages	$	57,200		$	1,100
Servicing materials				$	600
Other expenses	$	31,000

The planning budget for May was based on 36 wells serviced, but a total of 31 wells were actually serviced in May.

The activity variance for Servicing materials for May would have been closest to:

2. Knapper 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 January, the kennel budgeted for 2,700 tenant-days, but its actual level of activity was 2,740 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

	Fixed Element per Month			Variable element per tenant-day
Revenue		-		$	37.00
Wages and salaries	$	3,800		$	6.10
Food and supplies		900			14.90
Facility expenses		9,700			4.80
Administrative expenses		6,600			0.10
Total expenses	$	21,000		$	25.90

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

3. Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 6,200 units, but its actual level of activity was 6,160 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June:

Data used in budgeting:

	Fixed element per month			Variable element per unit
Revenue		-		$	27.80
Direct labor	$	0		$	3.10
Direct materials		0			10.20
Manufacturing overhead		37,200			1.10
Selling and administrative expenses		22,800			0.30
Total expenses	$	60,000		$	14.70

Actual results for June:

Revenue	$	178,318
Direct labor	$	18,606
Direct materials	$	60,652
Manufacturing overhead	$	43,896
Selling and administrative expenses	$	24,688

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

4. 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:

5. Prestridge 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 August.

	Fixed Element per Month			Variable Element per Customer Served		Actual Total for August
Revenue				$	4,100	$	120,500
Employee salaries and wages	$	41,500		$	1,000	$	71,200
Travel expenses				$	500	$	14,800
Other expenses	$	38,900				$	38,400

When the company prepared its planning budget at the beginning of August, it assumed that 31 customers would have been served. However, 29 customers were actually served during August.

The activity variance for net operating income for August would have been closest to