#6 Rhed Kennel uses tenant-days as its measure of activity; an animal housed in

Question

#6

Rhed 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 3,700 tenant-days, but its actual level of activity was 3,650 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:

Data used in budgeting:

Actual results for December:

The spending variance for facility expenses in December would be closest to:

Garrison 16e Rechecks 2018-06-07

$100 F

$120 F

$100 U

$120 U

#7

Tomlison Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,100 units, but its actual level of activity was 5,150 units. The company has provided the following data concerning the formulas to be used in its budgeting:

The direct materials in the flexible budget for October would be closest to:

$77,708

$78,540

$79,310

$79,239

#8

Rhed 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 3,700 tenant-days, but its actual level of activity was 3,650 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:

Data used in budgeting:

Actual results for December:

The facility expenses in the flexible budget for December would be closest to:

Garrison 16e Rechecks 2018-06-07

$24,480

$24,031

$24,694

$24,260

Fixed element per month Variable element per tenant-day Revenue - $ 33.90 Wages and salaries $ 2,200 $ 7.70 Food and supplies 1,400 12.90 Facility expenses 8,200 4.40 Administrative expenses 6,200 0.40 Total expenses $ 18,000 $ 25.40

Explanation / Answer

6) Spending variance for facility expense = (3650*4.4+8200)-24360 = 100 U

So answer is c) $100 U

7) Direct material in flexible budget = 5150*15.4 = 79310

So answer is c) $79310

8) Facility expense in flexible budget = (3650*4.4+8200) = 24260

So answer is d) $24260

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