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 5100 units, but its actual level of activity was 5,060 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 FixedVariable element element per per month unit $30.10 Revenue S $ 3.00 10.90 1.20 0.20 $15.30 Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses 38, 200 23,800 $62,000 Actual results for June: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses $158, 356 s 14,660 $ 52, 924 44,197 s 24,887 The overall revenue and spending variance (.e, the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for June would be closest to Multiple Choice $8,208 U $8,208 F $8,800 U $8,800 F Guareno 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 3,210 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: ariable Fixed element per element client- per month visit $46. Revenue Personnel expenses Medical supplies occupancy expenses Administrative expenses Total expenses 35, 100 $13.90 2,4005.90 2.10 0.30 $52,900 $22.2 10,800 4, 600 Actual results for December: $147, 430 79, 105 21,105 $ 17,155 Administrative expenses $ 5, 625 Revenue Personnel expenses Medical supplies Occupancy expenses The activity variance for administrative expenses in December would be closest to: Multiple Choice $27 U $35 F $35 U $27 F Fager Clinic uses client-visits as its measure of activity, During February, the clinic budgeted for 2.350 client-visits, but its actual level of activity February Data used in budgeting has provided the following data concerning the formulas used in its budgeting and its actual results for Variable Fixed element per element client- per month visit $69. 7 Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expenses $33, 800 $23.00 2, 700 14.00 4.90 6,500 168 54, 200 $43.50 11,200 6, Actual results for February: $171,210 83, 445 33, 105 19,800 Administrative expenses $ 8,015 Revenue Personnel expenses Medical supplies Occupancy expenses The revenue variance for February would be closest to: Multiple Choice $3,930 U $3,930 F $7,415 U $7,415 F Dinham 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 March, the kennel budgeted for 3,600 tenant-days, but its actual level of activity was 3,630 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting Fixed Variable element element per per month tenant-day $34,50 7.50 14.00 3.00 .68 $25.10 Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses S 2,500 1, 500 8,000 6, 500 $18, 500 Actual results for March: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses $121, 234 28, 550 $53, 125 s 18, 250 $7,095 The spending variance for food and supplies in March would be closest to: Multiple Choice $1,225 F $1,225 U $805 F $805 U
