#23

Teel Printing uses two measures of activity, press runs and book set-ups, in the cost formulas in its budgets and performance reports. The cost formula for wages and salaries is $8,850 per month plus $400 per press run plus $950 per book set-up. The company expected its activity in July to be 204 press runs and 111 book set-ups, but the actual activity was 201 press runs and 110 book set-ups. The actual cost for wages and salaries in July was $193,780.

The activity variance for wages and salaries in July would be closest to:

$2,120 U

$2,150 U

$2,150 F

$2,120 F

#24

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:

Garrison 16e Rechecks 2017-10-31

$16,114

$15,565

$15,945

$16,030