Question
Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,290
Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,290 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November:
Data used in budgeting:
Fixed element per month | Variable element per client-visit | |
---|---|---|
Revenue | $ 0 | $ 35.40 |
Personnel expenses | $ 29,500 | $ 10.40 |
Medical supplies | 1,200 | 5.80 |
Occupancy expenses | 7,600 | 1.90 |
Administrative expenses | 5,900 | 0.30 |
Total expenses | $ 44,200 | $ 18.40 |
Actual results for November:
Revenue | $ 116,656 |
---|---|
Personnel expenses | $ 63,686 |
Medical supplies | $ 21,072 |
Occupancy expenses | $ 13,371 |
Administrative expenses | $ 6,677 |
The activity variance for personnel expenses in November would be closest to:
Multiple Choice
$104 F
$104 U
$134 F
$134 U
Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,100 units, but its actual level of activity was 5,050 units. The company 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 unit | |
---|---|---|
Revenue | 0 | $ 39.60 |
Direct labor | $ 0 | $ 5.50 |
Direct materials | 0 | 15.70 |
Manufacturing overhead | 41,500 | 1.30 |
Selling and administrative expenses | 22,700 | 0.20 |
Total expenses | $ 64,200 | $ 22.70 |
Actual results for May:
Revenue | $ 197,810 |
---|---|
Direct labor | $ 28,565 |
Direct materials | $ 80,265 |
Manufacturing overhead | $ 47,905 |
Selling and administrative expenses | $ 22,680 |
The spending variance for manufacturing overhead in May would be closest to:
Multiple Choice
$160 U
$225 U
$225 F
$160 F
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