BUS 252 Accounting Test Bank 20- California Lutheran University

105. The wages and salaries in the planning budget for May would be closest to:



A. $18,34
4
B. $18,60
6
C. $18,72
0
D. $18,93
6

Cost = Fixed cost + (Variable cost per unit × q)
= $3,600 + ($5.40 × 2,800) = $18,720


AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 09-01 Prepare a flexible budget.

106. The administrative expenses in the planning budget for May would be closest to:



A. $7,02
6
B. $6,92
7
C. $7,33
6
D. $7,32
0

Cost = Fixed cost + (Variable cost per unit × q)
= $6,200 + ($0.40 × 2,800) = $7,320


AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 09-01 Prepare a flexible budget.

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



A. $10,92
0
B. $10,43
7
C. $11,35
6
D. $10,73
7




Net operating income = ($10.90 × 2,800) - $19,600 = $10,920


AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 09-01 Prepare a flexible budget.

, Chirico Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 2,500 client-visits, but its actual level of activity was 2,550 client-visits.
The clinic has provided the following data concerning the formulas used in its
budgeting and its actual results for February:

Data used in budgeting:




Actual results for February:




108. The personnel expenses in the planning budget for February would be closest to:



A. $68,64
2
B. $70,01
5
C. $69,12
5
D. $68,35
0

Cost = Fixed cost + (Variable cost per unit × q)
= $29,600 + ($15.50 × 2,500) = $68,350


AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 09-01 Prepare a flexible budget.

, 109. The occupancy expenses in the flexible budget for February would be closest to:



A. $14,45
0
B. $14,57
5
C. $14,94
8
D. $14,36
8

Cost = Fixed cost + (Variable cost per unit × q)
= $8,200 + ($2.50 × 2,550) = $14,575


AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 09-01 Prepare a flexible budget.

110. The net operating income in the flexible budget for February would be closest to:



A. $16,90
0
B. $23,45
0
C. $18,14
0
D. $22,53
9




Net operating income = ($24.80 × 2,550) - $45,100 = $18,140


AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 09-01 Prepare a flexible budget.