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3.

Please answer questions completely using multiple choice.

Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 6,700 units, but its actual level of activity was 6,650 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May Data used in budgeting Fixed element Variable element per unit $34.20 per month Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses $ 0 0 37,000 25,500 $62,500 $ 6.20 13.80 1.70 0.20 $21.90 Actual results for May Multiple Choice $775 F O O $1465 0 O $1,465 F o $775 U Paulis 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 February, the kennel budgeted for 4100 tenant-days, but its actual level of activity was 4.080 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February Data used in budgeting Fixed Variable element element per per month tenant-day $30.60 Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses $ 3,100 500 8,100 7.900 $19,600 $ 6.60 11.40 3.60 0.60 $22.20 Actual results for February Actual results for February: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses $107,880 $ 23,510 $_36,791 $ 19,260 9,142 The activity variance for net operating income in February would be closest to Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,600 client-visits, but its actual level of activity was 3,520 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Fixed Variable element element per per month client-visit $39.80 Revenue Personnel expenses Medical supplies - Occupancy expenses Administrative expenses Total expenses $35,800 1,800 8,800 5,800 $52,200 $11.00 7.80 1.80 0.90 $21.50 The activity variance for administrative expenses in July would be closest to: Multiple Choice $132 F $72 U O Dise: $132 U $72 F