TB Problem Qu. 9-375 (Algo) Varcoe Corporation bases its budgets on... Varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 36,500 customers, but actually served 31,500 customers. Revenue is $3.93 per customer served. Wages and salaries are $35,400 per month plus $1.33 per customer served. Supplies are $0.63 per customer served. Insurance is $9,600 per month. Miscellaneous expenses are $7,700 per month plus $0.33 per customer served. Required: Prepare a report showing the company's activity variances for September. Indicate in each case whether the variance is favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values and enter any losses with a minus sign.) Varcoe Corporation Activity Variances For the Month Ended September 30 Flexible Planning

TB Problem Qu. 9-375 (Algo) Varcoe Corporation bases its budgets on... Varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 36,500 customers, but actually served 31,500 customers. Revenue is $3.93 per customer served. Wages and salaries are $35,400 per month plus $1.33 per customer served. Supplies are $0.63 per customer served. Insurance is $9,600 per month. Miscellaneous expenses are $7,700 per month plus $0.33 per customer served. Required: Prepare a report showing the company's activity variances for September. Indicate in each case whether the variance is favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values and enter any losses with a minus sign.) Varcoe Corporation Activity Variances For the Month Ended September 30 Flexible Planning

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 10CE: Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects...

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Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 36.100 customers, but actually served 27.900 customers. The company uses the following revenue and cost formules in its budgeting, where is the number of customers served: Revenue: $4.60q Wages and salaries: $34,300+ $1.43q Supplies: $0.83q Insurance: $11,500 Miscellaneous expenses: $7,500 + $0.41q The company reported the following actual results for February: $ 141,800 $ 69,100 $ 15,500 $ 11,500 $ 23,200 Revenue Wages and salaries Supplies Insurance Miscellaneous expense Required: Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values. Customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous…
Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35.100 customers. but actually served 33.400 customers. The company uses the following revenue and cost formulas in its budgeting, where is the number of customers served Revenue: $3.60g Wages and salaries: $33,300+ $113g Supplies: $0.53q Insurance: $10,500 Miscellaneous expenses: $6,500 $0.31 The company reported the following actual results for February $ 121,000 $ 60,100 $ 14,500 $ 10,500 $ 18,200 Revenue Wages and salaris Supplies Insurance Miscellaneous expense Required: Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (Le.. zero variance). Input all amounts as positive values.) Customer served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense tal…
16. Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,250 client-visits, but its actual level of activity was 3,160 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Fixed element per month Variable element per client-visit Revenue $ 0 $ 39.10 Personnel expenses $ 35,100 $ 10.30 Medical supplies 1,100 7.10 Occupancy expenses 8,100 1.10 Administrative expenses 5,100 0.20 Total expenses $ 49,400 $ 18.70 The activity variance for net operating income in July would be closest to: Multiple Choice $1,086 F $1,836 F $1,836 U $1,086 U
A company bases its budgets on the activity measure customers served. During September, the company planned to serve 38,000 customers, but actually served 33,000 customers. Revenue is $3.96 per customer served. Wages and salaries are $35,700 per month plus $1.36 per customer served. Supplies are $0.66 per customer served. Insurance is $9,900 per month. Miscellaneous expenses are $8,000 per month plus $0.36 per customer served. Required: Prepare a report showing the company's static budget variance for September. Indicate in each case whether the variance is favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values and enter any losses with a minus sign.) Customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income (loss) Varcoe Corporation Static Budget Variance For…
Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35,200 customers, but actually served 32,800 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $3.70q Wages and salaries: $33,400+ $1.16q Supplies: $0.56q Insurance: $10,600 Miscellaneous expenses: $6,600 + $0.32q The company reported the following actual results for February: Revenue Wages and salaries Supplies Insurance Miscellaneous expense. $ 123,800 $ 68,200 $ 14,600 $ 10,600 $ 18,700 Required: Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.
Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 37,000 customers, but actually served 27,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $5.50q Wages and salaries: $35,200 + $1.70q Supplies: $1.10q Insurance: $12,400 Miscellaneous expense: $8,400 + $0.50q The company reported the following actual results for February: Revenue $ 159,800 Wages and salaries $ 70,000 Supplies $ 16,400 Insurance $ 12,400 Miscellaneous expense $ 27,700 Required: Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
Touro Dental Clinic uses patient-visits as its measure of activity. During January, the clinic budgeted for 3,600 patient-visits, but its actual level of activity was 3,500 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits:Revenue: $39.70qPersonnel expenses: $38,700 + $11.50qMedical supplies: $1,000 + $7.30qOccupancy expenses: $11,700 + $1.30qAdministrative expenses: $6,700 + $0.30qThe clinic reported the following actual results for January: Revenue - $132,280 Personnel expenses - 76,500 Medical supplies - 26,300 Rent expenses - 16,310 Administrative expenses - 7,620 Required:Prepare a report showing the clinic's revenue and spending variances for April. Label each variance as favorable (F) or unfavorable (U). Fill in all lines. actual flexible…
Shaak Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $6.30 per customer served. Wages and salaries should be $22,300 per month plus $0.90 per customer served. Supplies should be $0.80 per customer served. Insurance should be $5,950 per month. Miscellaneous expenses should be $4,400 per month plus $0.20 per customer served. The company reported the following actual results for October: Customers served Revenue. Wages and salaries Supplies Insurance Miscellaneous expense Required: Prepare a report showing the company's revenue and spending variances for October. Label each variance as favorable (F) or unfavorable (U). Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Customers served Revenue Expenses: Wages and salaries Supplies Insurance 22,750 $ 177,300 $ 40,725 $…
Shaak Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $4.20 per customer served. Wages and salaries should be $21,800 per month plus $1.00 per customer served. Supplies should be $0.70 per customer served. Insurance should be $5,700 per month, Miscellaneous expenses should be $3,900 per month plus $0.30 per customer served. The company reported the following actual results for October: Customers served Revenue Wages and salaries Supplies Insurance Miscellaneous expense Required: 22,500 $ 137,300 $ 40,600 $ 16,300 $ 5,580 $ 7,480 Prepare a report showing the company's revenue and spending variances for October. Label each variance as favorable (F) or unfavorable (U). Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Shaak Corporation Revenue and Spending Variances…
Felicetti Corporation bases its budgets on the activity measure customers served. During November, the company planned to serve 21,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting: Fixed element per month Variable element per customer $0 $6.90 $ 37,700 $0 Revenue Wages and salaries Supplies Insurance $2.70 $1.10 $9,900 $0.00 Miscellaneous expense $ 6,600 $0.20 The company has also furnished its income statement for November Felicetti Corporation Income Statement For the Month Ended November 30 Actual customers served 26,000 Revenue $177,900 Expenses: Wages and salaries Supplies Insurance 108,900 26,900 11,900 Miscellaneous expense 14,200 161,900 $ 16,000 Total expense Net operating income Required: Prepare a report showing the company's activity variances for November. Indicate in each case whether the variance is favorable (F) or unfavorable (U).
Mike Tackett, manager of the Troopers Café, has asked for your assistance preparing the monthly budget for January 20X8. He provides you with the prior January actuals as follows: Sales $100.400 Expenses: Labor (F) 12,000 Labor (V) 18,000 Cost of sales (V) 36,000 Supplies (V) 3.200 Energy (V) 2.620 Promotion (V) 1.300 Maintenance (F) 2.000 Maintenance (V) 1.200 Property taxes (F) 800 Depreciation (F) 1.000 Rent (F) 850 Insurance (F) 625 Subtotal 79.595 Net income $20.805 Assume for 20X8 sales are expected to increase by 10 percent, fixed costs will increase by 5 percent, and variable costs will remain at the same percentage of sales as experienced in the prior January. Prepare the budget for January 20X8. HOMEWORK HINT: Divide the prior January variable expenses by the prior January sales amount to come up with the percentage of sales for each variable expense. DO NOT ROUND THE PERCENTAGEI Multiply that percentage by the January 2018 Budgeted Sales Amount (that you figure out) to come…
Grohs 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 December, the kennel budgeted for 2,500 tenant-days, but its actual level of activity was 2,530 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 $ 0 $33.00 Wages and salaries $ 3,800 $ 7.90 Food and supplies 1,000 11.60 Facility expenses 8,600 2.20 Administrative expenses 6,200 0.20 Total expenses $19,600 $21.90 The net operating income in the planning budget for December would be closest to: Multiple Choice A. $8,150 B. $11,914 C. $8,483 D. $11,633