Kiish gUSN 314 Managerial Accounting/ Exam -apters 8 and 9/Fall 2014 TRUE/FALSE.
ID: 2585118 • Letter: K
Question
Kiish gUSN 314 Managerial Accounting/ Exam -apters 8 and 9/Fall 2014 TRUE/FALSE. Write if the statement is trw and r ite statement-ile. at 1) Using a flexible budget, actual results can be compared to what costs should have boen flexible budget, actual results can be compared to what costs the actual level of activity. t show what should z 2) Differences between the static planning budget and the flexible budget have happened because the actual level of activity differed from what had been planned ESSAY. Write your anevwer in the space provided or on a separate sheet of paper patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is tdh of patient-visits 3) During September, Ferman Clinic budgcted for 3,800 patient-visits, but its actual level of activity wa Revenuc: $21.60q Personnel expenses: $22,600+ $6.60q Medical supplies: $1,000+S2.60q Occupancy expenses: $6,000+0.90g Required: Prepare the clinic's flexible budget for September based on the actual level of activity for the month. 4) During February, Barreca Clinic plans for an activity level of 2,700 patient-visits. The clinic uses the revenue and cost formulas in its budgeting, where q is the number of patient-visits: Revenue: $49.10q Personnel expenses: $34,100+ $13.20q Medical supplies: $1,300+$9.40q Occupancy expenses: $8,300+$1.40q Administrative expenses: $6,100+S0.30 Required: Prepare the clinic's planning budget for February.Explanation / Answer
1. True
2. True
3 Particulars Cost formula Flexible budget Patients 3800 Revenue 21.60q 82080 Expenses Personal expenses 22600+6.60q 47680 Medical supplies 1000+2.60q 10880 Occupancy expense 6000+.90q 9420 Administrative expense 4300+.30q 5440 Total expense 73420 Net income 8660 4 Particulars Cost formula Static budget Patients 2700 Revenue 49.10q 132570 Expenses Personal expenses 34100+13.20q 69740 Medical supplies 1300+9.40q 26680 Occupancy expense 8300+1.40q 12080 Administrative expense 6100+.30q 6910 Total expense 115410 Net income 17160Related Questions
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