Question
In: Accounting
Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of...
Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
| Fixed element per month |
Variable element per student | Variable element per course | ||||||||||
| Revenue | $ | 0 | $ | 263 | $ | 0 | ||||||
| Faculty wages | $ | 0 | $ | 0 | $ | 3,030 | ||||||
| Course supplies | $ | 0 | $ | 45 | $ | 33 | ||||||
| Administrative expenses | $ | 26,150 | $ | 20 | $ | 45 | ||||||
In March, the school budgeted for 1,840 students and 81 courses. The school's income statement showing the actual results for the month appears below:
| Roberds Tech | |||
| Income Statement | |||
| For the Month Ended March 31 | |||
| Actual students | 1,740 | ||
| Actual courses | 84 | ||
| Revenue | $ | 376,340 | |
| Expenses: | |||
| Faculty wages | 211,450 | ||
| Course supplies | 59,090 | ||
| Administrative expenses | 67,062 | ||
| Total expense | 337,602 | ||
| Net operating income | $ | 38,738 | |
Required:
Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for March. 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.)
Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
| Fixed element per month |
Variable element per student | Variable element per course | ||||||||||
| Revenue | $ | 0 | $ | 263 | $ | 0 | ||||||
| Faculty wages | $ | 0 | $ | 0 | $ | 3,030 | ||||||
| Course supplies | $ | 0 | $ | 45 | $ | 33 | ||||||
| Administrative expenses | $ | 26,150 | $ | 20 | $ | 45 | ||||||
In March, the school budgeted for 1,840 students and 81 courses. The school's income statement showing the actual results for the month appears below:
| Roberds Tech | |||
| Income Statement | |||
| For the Month Ended March 31 | |||
| Actual students | 1,740 | ||
| Actual courses | 84 | ||
| Revenue | $ | 376,340 | |
| Expenses: | |||
| Faculty wages | 211,450 | ||
| Course supplies | 59,090 | ||
| Administrative expenses | 67,062 | ||
| Total expense | 337,602 | ||
| Net operating income | $ | 38,738 | |
Required:
Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for March. 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.)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of...
Roberds Tech is a for-profit vocational school. The school bases
its budgets on two measures of activity (i.e., cost drivers),
namely student and course. The school uses the following data in
its budgeting:
Fixed element
per month
Variable element per student
Variable element per course
Revenue
$
0
$
228
$
0
Faculty wages
$
0
$
0
$
2,960
Course supplies
$
0
$
38
$
26
Administrative expenses
$
25,800
$
13
$
38
In March, the school...
Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of...
Roberds Tech is a for-profit vocational school. The school bases
its budgets on two measures of activity (i.e., cost drivers),
namely student and course. The school uses the following data in
its budgeting:
Fixed element
per month
Variable element per student
Variable element per course
Revenue
$
0
$
273
$
0
Faculty wages
$
0
$
0
$
3,050
Course supplies
$
0
$
47
$
35
Administrative expenses
$
26,250
$
22
$
47
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you
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Filkins Clinic bases its budgets on the activity measure
patient-visits. During February, the clinic planned for 5,300
patient-visits, but the actual level of activity was 5,500
patient-visits. The clinic has provided the following data
concerning the formulas it uses in its budgeting:
Fixed element
per month
Variable element
per patient-visit
Revenue
$
33.50
Personnel expenses
$
32,800
$
10.90
Medical Supplies
$
2,800
$
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Occupancy expenses
$
7,800
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2.90
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Sharifi Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below: Budgeted...
Sharifi Hospital bases its budgets on patient-visits. The
hospital's static budget for October appears below:
Budgeted number of patient-visits
7,700
Budgeted variable overhead costs:
Supplies (@$4.90 per patient-visit)
$
37,730
Laundry (@$7.90 per patient-visit)
60,830
Total variable overhead cost
98,560
Budgeted fixed overhead costs:
Wages and salaries
52,150
Occupancy costs
85,350
Total fixed overhead cost
137,500
Total budgeted overhead cost
$
236,060
The total overhead cost at an activity level of 8,400
patient-visits per month should be:
_
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_...
Wytch Corporation bases its budgets on machine-hours. The company's static planning budget for February appears below:...
Wytch Corporation bases its budgets on machine-hours. The
company's static planning budget for February appears below:
Budgeted number of machine-hours
6,000
Budgeted variable costs:
Supplies (@ $6.90 per machine-hour)
$
41,400
Power (@ $3.70 per machine-hour)
22,200
Budgeted fixed costs:
Salaries
51,600
Equipment depreciation
26,400
Total expense
$
141,600
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Prepare a flexible budget for 6,400 machine-hours per month.
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