BUS 252 Accounting Test Bank 20

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