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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 17 Aug 2017 My Price 14.00

Loomer Catering

Question 1

Loomer Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $550 per month plus $95 per job plus $21 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in July to be 12 jobs and 136 meals, but the actual activity was 13 jobs and 137 meals. The actual cost for catering supplies in July was $4,770. The catering supplies in the planning budget for July would be closest to:

   

$4,403
   

$4,770
   

$4,662
   

$4,546

1 points   

Question 2

Kudej Printing uses two measures of activity, press runs and book set-ups, in the cost formulas in its budgets and performance reports. The cost formula for wages and salaries is $8,360 per month plus $570 per press run plus $910 per book set-up. The company expected its activity in May to be 194 press runs and 74 book set-ups, but the actual activity was 195 press runs and 72 book set-ups. The actual cost for wages and salaries in May was $188,370.

The activity variance for wages and salaries in May would be closest to:

   

$1,250 F
   

$2,090 F
   

$2,090 U
   

$1,250 U

1 points   

Question 3

Leaphart 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 May, the kennel budgeted for 2,800 tenant-days, but its actual level of activity was 2,840 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

Picture

The net operating income in the planning budget for May would be closest to:

   

$10,920
   

$10,437
   

$11,356
   

$10,737

1 points   

Question 4

Miao Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 2,980 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Data used in budgeting:

Picture

Actual results for July:

Picture

The occupancy expenses in the flexible budget for July would be closest to:

   

$10,907
   

$11,054
   

$11,180
   

$11,200

1 points   

Question 5

Fortmann 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 September, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 2,010 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

Picture

The activity variance for administrative expenses in September would be closest to:

   

$89 F
   

$1 F
   

$1 U
   

$89 U

 

Answers

Maurice Tutor
(5)
Status NEW Posted 17 Aug 2017 09:08 PM My Price 14.00

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