Flexible Budgets, Standard Costs, and Variance Analysis
$86.0 0
507.4 0
gu
86 est
s
A. $52,848.40
B. $8,343.40
C. $8,274.40
D. $7,373.24
The Inn's variable overhead costs are driven by the number of guests.
What would be the total budgeted overhead cost for a month if the activity level is 76
guests?
340.0 Utilities
0
Salaries
4,790. and wages
00
Depreciatio 2,62 n
0.00
Total
$8,34 overhead cost 3.40
Fixed
overhead
costs:
Laundry
Supplies
Variable
overhead
costs:
Activity level
Papenfuss Family Inn is a bed and breakfast establishment in a converted 100-year-old
mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated
rooms. The Inn's overhead budget for the most recent month appears below:
41. Ohme Framing's cost formula for its supplies cost is $1,620 per month plus $13 per
frame. For the month of April, the company planned for activity of 882 frames, but the
40.
A. static planning budget and flexible budget
B. static planning budget and actual results
C. flexible budget and actual results
D. master budget and static planning budget
32. Which of the following comparisons best isolates the impact that changes in operating
efficiency have on performance? A. a budget for a single level of activity.
B. a budget that ignores inflation.
C. used only for fixed costs.
D. used when the mix of products does not change.
31. A static planning budget is: A. monthly budget.
B. master budget.
C. flexible budget.
D. rolling budget.
30. Comparing actual results to a budget based on the actual activity for the period is possible
with the use of a: A. they are valid for only a single level of activity.
B. they ignore fixed costs.
C. they compare actual costs at one level of activity to budgeted costs at a different level
of activity.
D. none of these is a major weakness of flexible budgets.
29. A major weakness of flexible budgets is that: Multiple Choice Questions
Chapter 08
Budgeted number of
patient-visits
Budgeted variable
overhead costs:
Supplies (@ $3.90
per patient-visit)
Laundry (@ $9.70
per patient-visit)
Total variable
$10,
530
26
,190
36
2,70
0
72,760
44,880
117,640
$206,040
43. Akey Hospital bases its budgets on patient-visits. The hospital's static budget for March
appears below:
A. $227,250
B. $215,140
C. $216,140
D. $206,040
6,800
$53,720
34,680
88,400
The total overhead cost at an activity level of 7,500 guest-days per month should be: Supplies
Budgeted number of guest-days
Budgeted variable overhead costs:
(@ $7.90 per guest-day)
Laundry (@ $5.10 per guest-day)
Total variable overhead cost
Budgeted fixed overhead costs:
Wages and salaries
Occupancy costs
Total fixed overhead cost
Total budgeted overhead cost
42. Fuhrer Hotel bases its budgets on guest-days. The hotel's static budget for December
appears below:
A. $13,086
B. $13,500
C. $13,034
D. $13,027
actual level of activity was 878 frames. The actual supplies cost for the month was
$13,500. The supplies cost in the flexible budget for April would be closest to: A. Poor quality materials causing breakage and work interruptions.
36. Which of the following would produce a labor rate variance? No
No
No
Yes
Yes
No
Yes
Materials
Quantity
Variance
Yes
Labor
Efficiency
Variance
A. Option A
B. Option B
C. Option C
D. Option D
A
)
B
)
C
)
D
)
35. Poor quality materials could have an unfavorable effect on which of the following
variances?
A. the materials quantity variance.
B. the materials price variance.
C. the labor rate variance.
D. the labor efficiency variance.
34. The variance that is usually most useful in assessing the performance of the purchasing
department manager is: A. An excess quantity of materials used.
B. An excess number of direct labor-hours worked in completing a job.
C. Shipping materials to the plant by air freight rather than by truck.
D. Breakage of materials in production.
33. Which of the following would produce a materials price variance? Labor Efficiency Variance
No effect
Unfavorable
Favorable
Unfavorable
15,6
60
35,
640
51
,300
$88
,020
,720
A. $97,800
B. $92,100
C. $88,020
D. $92,640
The total overhead cost at an activity level of 3,000 patient-visits per month should be: Total fixed overhead
cost
Total budgeted
overhead cost
costs
and salaries
Occupancy
Wages
overhead cost
Budgeted fixed
overhead costs:
46. Pettry Snow Removal's cost formula for its vehicle operating cost is $2,170 per month
plus $408 per snow-day. For the month of December, the company planned for activity of
A. $6,657
B. $5,230
C. $4,609
D. $5,061
45. Towne Snow Removal's cost formula for its vehicle operating cost is $1,470 per month
plus $399 per snow-day. For the month of November, the company planned for activity of
13 snow-days, but the actual level of activity was 9 snow-days. The actual vehicle
operating cost for the month was $5,230. The vehicle operating cost in the flexible budget
for November would be closest to: A. $47,838
B. $50,800
C. $49,909
D. $48,656
44. Dehnert Midwifery's cost formula for its wages and salaries is $2,030 per month plus $409
per birth. For the month of May, the company planned for activity of 112 births, but the
actual level of activity was 114 births. The actual wages and salaries for the month was
$50,800. The wages and salaries in the planning budget for May would be closest to: A. favorable.
B. unfavorable.
C. either favorable or unfavorable.
D. zero.
39. Variable manufacturing overhead is applied to products on the basis of standard direct
labor-hours. If the labor efficiency variance is unfavorable, the variable overhead
efficiency variance will be: A. unfavorable and half the labor efficiency variance.
B. favorable and half the labor efficiency variance.
C. unfavorable and twice the labor efficiency variance.
D. favorable and twice the labor efficiency variance.
38. In a company's standard costing system direct labor-hours are used as the base for
applying variable manufacturing overhead costs. The standard direct labor rate is twice
the variable overhead rate. Last period the labor efficiency variance was unfavorable.
From this information one can conclude that last period the variable overhead efficiency
variance was: Labor Rate Variance
Unfavorable
No effect
Unfavorable
Favorable
A. Option A
B. Option B
C. Option C
D. Option D
A)
B)
C)
D)
37. During a recent lengthy strike at Morell Manufacturing Company, management replaced
striking assembly line workers with office workers. The assembly line workers had been
paid $18 per hour while the office workers are only paid $10 per hour. What is the most
likely effect on the labor variances in the first month of this strike?
B. Use of persons with high hourly wage rates in tasks that call for low hourly wage rates.
C. Excessive number of hours worked in completing a job.
D. An unfavorable variable overhead rate variance.
C. $2.37
D. $2.43
Supplies
A. $140 U
59. Tysor Framing's cost formula for its supplies cost is $2,610 per month plus $17 per frame.
For the month of July, the company planned for activity of 710 frames, but the actual level
of activity was 712 frames. The actual supplies cost for the month was $14,540. The
spending variance for supplies cost in July would be closest to: A. $67 F
B. $550 F
C. $631 F
D. $81 F
58. Gastineau Tile Installation Corporation measures its activity in terms of square feet of tile
installed. Last month, the budgeted level of activity was 1,230 square feet and the actual
level of activity was 1,200 square feet. The company's owner budgets for supply costs, a
variable cost, at $2.70 per square foot. The actual supply cost last month was $2,690. In
the company's performance report for last month, what would have been the spending
variance for supply costs? A. $0.95
B. $0.90
C. $0.80
D. $0.85
57. At Worthe Corporation, indirect labor is a variable cost that varies with direct labor-hours.
Last month's performance report showed that actual indirect labor cost totaled $7,920 for
the month and that the associated spending variance was $240 F. If 10,200 direct laborhours were actually worked last month, then the flexible budget cost formula for indirect
labor must be (per direct labor-hour) closest to: A. $5,600
B. $5,400
C. $6,000
D. $5,200
56. Biggs Enterprise's flexible budget cost formula for indirect materials, a variable cost, is
$0.60 per unit of output. If the company's performance report for last month shows a $200
favorable spending variance for indirect materials and if 9,000 units of output were
produced last month, then the actual costs incurred for indirect materials for the month
must have been: machine
-hours
6,800
$22,4 40
55,76 Indirect labor
0
Fixed
overhead
costs:
19,30 Supervision
0
5,700 Utilities
7 Depreciation
,400
Total
$110 overhead cost ,600
Variable
overhead
costs:
Activity level
48. Hatzenbuhler Manufacturing Corporation has prepared the following overhead budget for
next month.
A. $50,540
B. $48,592
C. $50,144
D. $50,225
47. Tulip Midwifery's cost formula for its wages and salaries is $2,420 per month plus $388
per birth. For the month of January, the company planned for activity of 119 births, but the
actual level of activity was 123 births. The actual wages and salaries for the month was
$50,540. The wages and salaries in the flexible budget for January would be closest to: A. $7,474
B. $9,354
C. $8,698
D. $7,600
16 snow-days, but the actual level of activity was 13 snow-days. The actual vehicle
operating cost for the month was $7,600. The vehicle operating cost in the planning
budget for December would be closest to: 63. Hejl 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 $210 per
month plus $86 per job plus $15 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 March to be 23 jobs and 222 meals, but the actual activity was 28 jobs and 217
meals. The actual cost for catering supplies in March was $5,830. The spending variance
A. $144 U
B. $1,829 U
C. $1,829 F
D. $144 F
62. Ishibashi Snow Removal's cost formula for its vehicle operating cost is $1,240 per month
plus $337 per snow-day. For the month of February, the company planned for activity of
17 snow-days, but the actual level of activity was 12 snow-days. The actual vehicle
operating cost for the month was $5,140. The spending variance for vehicle operating
cost in February would be closest to: A. $134 U
B. $577 U
C. $711 U
D. $140 U
61. Petroski Natural Dying Corporation measures its activity in terms of skeins of yarn dyed.
Last month, the budgeted level of activity was 19,700 skeins and the actual level of
activity was 19,900 skeins. The company's owner budgets for dye costs, a variable cost,
at $0.67 per skein. The actual dye cost last month was $13,910. In the company's
performance report for last month, what would have been the spending variance for dye
costs? A. $2.48
B. $2.18
C. $2.79
D. $2.17
60. Randt Footwear Corporation's flexible budget cost formula for supplies, a variable cost, is
$2.79 per unit of output. The company's performance report for last month showed a
$5,363 favorable spending variance for supplies. During that month, 17,300 units were
produced. Budgeted activity for the month had been 17,200 units. The actual cost per unit
for indirect materials must have been closest to: B. $174 F
C. $140 F
D. $174 U
A. $2,496
B. $2,970
C. $2,832
51. Lynne 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 $480 per
month plus $91 per job plus $14 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 June to be 10 jobs and 79 meals, but the actual activity was 14 jobs and 77
meals. The actual cost for catering supplies in June was $2,970. The catering supplies in
the flexible budget for June would be closest to: A. $4,403
B. $4,770
C. $4,662
D. $4,546
50. 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: A. $8,920
B. $9,207
C. $8,934
D. $9,190
49. Peixoto Framing's cost formula for its supplies cost is $1,150 per month plus $14 per
frame. For the month of July, the company planned for activity of 556 frames, but the
actual level of activity was 555 frames. The actual supplies cost for the month was
$9,190. The supplies cost in the planning budget for July would be closest to: A. $107,824.00
B. $110,600.00
C. $108,300.00
D. $107,347.06
The company's variable overhead costs are driven by machine-hours.
What would be the total budgeted overhead cost for next month if the activity level is
6,600 machine-hours rather than 6,800 machine-hours? D. $3,494
A. $286,360
B. $277,614
C. $281,084
D. $278,188
66. Sekuterski Air uses two measures of activity, flights and passengers, in the cost formulas
in its budgets and performance reports. The cost formula for plane operating costs is
$45,700 per month plus $2,892 per flight plus $4 per passenger. The company expected
its activity in November to be 81 flights and 283 passengers, but the actual activity was 80
flights and 282 passengers. The actual cost for plane operating costs in November was
$286,360. The plane operating costs in the flexible budget for November would be closest
to: A. $245,958
B. $239,870
C. $248,754
D. $238,689
65. Krejci Air uses two measures of activity, flights and passengers, in the cost formulas in its
budgets and performance reports. The cost formula for plane operating costs is $41,430
per month plus $2,419 per flight plus $6 per passenger. The company expected its activity
in March to be 84 flights and 222 passengers, but the actual activity was 81 flights and
220 passengers. The actual cost for plane operating costs in March was $239,870. The
plane operating costs in the planning budget for March would be closest to: A. $864 F
B. $1,188 U
C. $1,188 F
D. $864 U
64. Gershon Air uses two measures of activity, flights and passengers, in the cost formulas in
its budgets and performance reports. The cost formula for plane operating costs is
$38,720 per month plus $2,061 per flight plus $9 per passenger. The company expected
its activity in June to be 76 flights and 238 passengers, but the actual activity was 75
flights and 239 passengers. The actual cost for plane operating costs in June was
$196,310. The spending variance for plane operating costs in June would be closest to: A. $312 F
B. $312 U
C. $43 F
D. $43 U
for catering supplies in March would be closest to: A. $2.74
B. $2.81
55. Olivera Corporation's performance report for last month shows that actual indirect
materials cost, a variable cost, was $31,178 and that the spending variance for indirect
materials cost was $2,261 unfavorable. During that month, the company worked 11,900
machine-hours. Budgeted activity for the month had been 12,200 machine-hours. The
cost formula per machine-hour for indirect materials cost must have been closest to: A. $30 F
B. $432 U
C. $30 U
D. $432 F
54. Loggin Midwifery's cost formula for its wages and salaries is $2,380 per month plus $231
per birth. For the month of April, the company planned for activity of 100 births, but the
actual level of activity was 102 births. The actual wages and salaries for the month was
$25,510. The spending variance for wages and salaries in April would be closest to: A. $7,650
B. $7,700
C. $7,200
D. $6,700
53. Ros Corporation's flexible budget cost formula for indirect materials, a variable cost, is
$0.90 per unit of output. If the company's performance report for last month shows a $500
unfavorable spending variance for indirect materials and if 8,000 units of output were
produced last month, then the actual costs incurred for indirect materials for the month
must have been: A. $850 F
B. $220 U
C. $30 F
D. $880 F
52. Paradiso Medical Clinic measures its activity in terms of patient-visits. Last month, the
budgeted level of activity was 1,060 patient-visits and the actual level of activity was 1,050
patient-visits. The cost formula for administrative expenses is $3.00 per patient-visit plus
$17,000 per month. The actual administrative expense was $19,300. In the clinic's
performance report for last month, the spending variance for administrative expenses
was: A. $3.92
B. $4.32
C. $4.08
D. $4.20
A. $2,250 F
B. $7,540 U
C. $24,317 U
D. $7,660 U
What is the materials quantity variance for the month? Actual materials
met
5,800
purchased
ers
Actual cost of
$113, materials purchased
680
Actual materials used
met
5,100
in production
ers
unit
Actual output
3,200
s
Actual direct labor6,50
hours
hours worked
0
Standard direct labor
per
$8
rate
hour
76. The Hanson Corporation employs a standard costing system. The following data are
available for February:
A. 2,500 hours
B. 2,400 hours
C. 2,250 hours
D. 1,800 hours
75. Blue Corporation's standards call for 2,500 direct labor-hours to produce 1,000 units of
product. During May 900 units were produced and the company worked 2,400 direct
labor-hours. The standard hours allowed for May production would be: A. $384 Unfavorable
B. $816 Favorable
C. $1,200 Favorable
D. $1,500 Favorable
74. Dreary Credit Agency uses a standard cost system for the processing of its credit
applications. The labor standard at Dreary is 10 applications per 8 hour day at a standard
cost of $15 per hour.
During the last pay period, Dreary's credit agents worked 1,920 hours and processed
2,500 applications. The total labor cost for the agents during this period was $29,184.
What was Dreary's labor efficiency variance for this last pay period? A. 20,000
B. 21,625
C. 23,250
D. 24,875
73. A quantity of a particular raw material was purchased for $43,250. The standard cost of
the material was $2.00 per kilogram and there was an unfavorable materials price
variance of $3,250. How many kilograms were purchased? meter
1.7
s
$19 per
.80 meter
The following data pertain to operations concerning the product for the last month:
Standard price
Standard quantity per
unit of output
68. The following materials standards have been established for a particular product:
35, pound
000 s
per
$4
pound
$7, unfavo
000 rable
$4, favora
200 ble
The actual price per pound of direct materials purchased in June is: Material quantity variance
Material price variance
Actual quantity of direct
materials purchased
Standard price of direct
materials
67. The Swenson Corporation has a standard costing system. The following data are
available for June:
$10 per hour
$? per pound
$16 per hour
Standard
Price or Rate
A. $1.74
B. $4.60
C. $5.90
D. $3.00
A. $7.60 per hour
B. $8.40 per hour
C. $8.00 per hour
D. $2.50 per hour
hour
6,100
s
$71,37 0
900 units
A. $19,017 F
B. $19,017 U
C. $16,029 F
D. $16,577 F
What is the labor efficiency variance for the month? Actual hours
worked
Actual total labor
cost
Actual output
Labor Rate Variance
Labor Efficiency Variance
78. The standard cost card of a particular product specifies that it requires 4.5 direct laborhours at $12.80 per direct labor-hour. During March, 2,300 units of the product were
produced and direct labor wages of $128,300 were incurred. A total of 11,700 direct laborhours were worked. The direct labor variances for the month were:
hour
8.3
s
$12 per
.10 hour
The following data pertain to operations concerning the product for the last month:
Standard labor rate
Standard labor-hours
per unit of output
77. The following labor standards have been established for a particular product:
$2,6 Favor
00 able
The actual direct labor rate for February is: Labor rate variance
71. The standard cost card for a product indicates that one unit of the product requires 8
kilograms of a raw material at $0.80 per kilogram. The production of the product in April
was 870 units, but production had been budgeted for 850 units. During April, 8,200
kilograms of the raw material were purchased for $6,888 and 7,150 kilograms of the raw
material were used in production. The material variances for April were:
A. 1,080,000
B. 1,160,000
C. 1,200,000
D. 784,000
70. The standards for direct materials in making a certain product are 20 pounds at $0.75 per
pound. During the past period, 56,000 units of product were made and the materials
quantity variance was $30,000 U. The number of pounds of direct material used during
the period amounted to: 1.5 hours
Standard
Quantity or
Hours
10 pounds
2.5 hours
If the total standard variable cost for one unit of finished product is $85, then the standard
price per pound for direct materials is: Direct materials
Direct labor
Variable
manufacturing
overhead
69. The standard cost card for one unit of a certain finished product shows the following:
A. $13,720 U
B. $6,732 F
C. $13,860 U
D. $6,664 F
$280 U
$152 U
$280 U
$152 U
Material
Quantity
Variance
A. Option A
B. Option B
C. Option C
D. Option D
A)
B)
C)
D)
$4,180 F
$4,180 F
$21,460 F
$21,460 F
What is the materials price variance for the month? Actual materials
gra
7,500
purchased
ms
Actual cost of
$141, materials purchased
375
Actual materials used
gra
7,100
in production
ms
unit
Actual output
700
s
$14,804 U
$17,280 U
$14,804 U
$17,280 U
A. 5,400 hours
B. 5,600 hours
C. 5,800 hours
D. 6,000 hours
81. The following labor standards have been established for a particular product:
5,8
hours
00
per
$9
hour
$1, unfavo
800 rable
The standard hours allowed for December's production is: Actual direct laborhours worked
Standard direct
labor rate
Labor efficiency
variance
80. The Fischer Corporation uses a standard costing system. The following data have been
assembled for December:
A. 19,850
B. 20,400
C. 20,950
D. 35,200
79. Krizum Industries makes heavy construction equipment. The standard for a particular
crane calls for 24 direct labor-hours at $16 per direct labor-hour. During a recent period
850 cranes were made. The labor rate variance was zero and the labor efficiency
variance was $8,800 unfavorable. How many actual direct labor-hours were worked? gram
8.3
s
$19 per
.15 gram
The following data pertain to operations concerning the product for the last month:
Standard price
Standard quantity per
unit of output
72. The following materials standards have been established for a particular product:
$328 U
$328 U
$286 U
$286 U
Material Price
Variance
A. Option A
B. Option B
C. Option C
D. Option D
A
)
B
)
C
)
D
)
hour
3,700
s
$50,69 0
2,300 units
A. $1,295 F
B. $2,877 F
C. $4,246 F
D. $4,246 U
What is the labor rate variance for the month? Actual hours
worked
Actual total labor
cost
Actual output
The following data pertain to operations concerning the product for the last month:
Standard labor rate
hour
s
$14 per
.05 hour
1.7
2,90 ho
0 urs
A. 3,928
B. 3,944
C. 4,056
D. 4,072
Hien's variable overhead rate variance for September was $800 favorable. Its variable
overhead efficiency variance was $3,600 unfavorable. How many machine-hours did Hien
actually use during September?
Standard rate per machine-hour: $50
Total standard machine-hours allowed for units produced during September: 4,000
Actual total variable
$36, manufacturing overhead
975
cost
uni
Actual output
200
ts
Actual hours
$26,240
$29,99
0
A. $550 Favorable
B. $1,208 Unfavorable
C. $22 Favorable
D. $1,230 Favorable
90. Suski Corporation has a standard cost system in which it applies manufacturing overhead
to products on the basis of standard machine-hours (MHs). The company has provided
the following data for the most recent month:
$3,840 $4,730
25,26
22,400
0
Original Actual
Budget Costs
The original budget was based on 3,200 machine-hours. The company actually worked
3,510 machine-hours during the month and the standard hours allowed for the actual
output were 3,660 machine-hours. What was the overall variable overhead efficiency
variance for the month? Total variable
manufacturing overhead
cost
Indirect labor
Variable overhead costs:
Supplies
89. Schley Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. Budgeted and actual overhead costs for the most recent month appear
below:
$12. per
55 hour
7.8 hours
The following data pertain to operations for the last month:
Standard hours per
unit of output
Standard variable
overhead rate
82. The following standards for variable manufacturing overhead have been established for a
company that makes only one product:
Standard labor-hours
per unit of output
A. $17,397 U
B. $16,817 U
C. $312 F
D. $17,085 U
A. $1,500 Favorable
B. $590 Unfavorable
C. $910 Favorable
D. $1,000 Unfavorable
8.6
machinehours
1,90
trucks
0
2,00
trucks
0
16,9 machine70 hours
$78, 137
Supplies cost is an element of variable manufacturing overhead. The variable overhead
efficiency variance for supplies cost is: Actual machinehours
Actual supplies
cost (total)
Actual production
per
Standard supplies $4.2
machinecost
0
hour
Budgeted
production
Standard
machine-hours
per truck
91. The following data have been provided by Gerlach Corporation, a company that produces
forklift trucks:
$42, 750
$5.9 per
0 MH
7,40 MH
0s
7,50 MH
0s
$13,150
24,390
Actual Costs
$14,000
27,200
Original Budget
Based on 4,000
Machine-Hours
What was the variable overhead rate variance for the month? Standard variable
manufacturing
overhead rate
Actual total variable
manufacturing
overhead
Actual level of activity
Budgeted level of
activity
labor
Fixed overhead costs:
Indirect
Supplies
Variable overhead costs:
85. Merle Corporation applies manufacturing overhead to products on the basis of standard
machine-hours. For the most recent month, the company based its budget on 4,000
machine-hours. Budgeted and actual overhead costs for the month appear below:
A. $92 Favorable
B. $92 Unfavorable
C. $460 Unfavorable
D. $460 Favorable
84. Sholette Manufacturing Corporation has a standard cost system in which it applies
manufacturing overhead to products on the basis of standard machine-hours (MHs) at
$5.00 per MH. During the month, the actual total variable manufacturing overhead was
$22,540 and the actual level of activity for the period was 4,600 MHs. What was the
variable overhead rate variance for the month? A. $6,787 F
B. $6,787 U
C. $850 F
D. $850 U
83. Welcome Corporation produces metal telephone poles. In the most recent month, the
company budgeted production of 4,100 poles. Actual production was 4,400 poles.
According to standards, each pole requires 7.0 machine-hours. The actual machine-hours
for the month were 31,140 machine-hours. The standard variable manufacturing
overhead rate is $2.50 per machine-hour. The actual variable manufacturing overhead
cost for the month was $83,787. The variable overhead efficiency variance is: What is the variable overhead efficiency variance for the month? 19,540
4,360
8,620
$70,060
A. $721 Unfavorable
B. $467 Favorable
C. $254 Unfavorable
D. $880 Favorable
A. $966 U
B. $5,897 U
C. $5,897 F
D. $966 F
Hien Inc., uses machine-hours as the base to apply its manufacturing overhead. The
following information relates to variable manufacturing overhead standards at Hien:
A. $112 F
B. $130 U
C. $4,450 U
D. $4,338 U
What is the variable overhead rate variance for the month? 2,60 ho
0 urs
Actual total variable
$31, manufacturing overhead
330
cost
uni
Actual output
400
ts
Actual hours
A. $1.30 per MH
B. $1.25 per MH
C. $1.20 per MH
93. At Cady Corporation, maintenance is a variable overhead cost that is based on machinehours. The performance report for June showed that actual maintenance costs totaled
$9,600 and that the associated rate variance was $400 unfavorable. If 8,000 machinehours were actually worked during June, the standard maintenance cost per machinehour was: 5.6 hours
$12. per
00 hour
The following data pertain to operations for the last month:
Standard hours per
unit of output
Standard variable
overhead rate
92. The following standards for variable manufacturing overhead have been established for a
company that makes only one product:
88.
A. $5,821 F
B. $5,821 U
C. $1,302 U
D. $1,302 F
87. Sperazza Corporation produces large commercial doors for warehouses and other
facilities. In the most recent month, the company budgeted production of 4,900 doors.
Actual production was 5,300 doors. According to standards, each door requires 6.4
machine-hours. The actual machine-hours for the month were 34,340 machine-hours.
The standard supplies cost is $3.10 per machine-hour. The actual supplies cost for the
month was $99,331. Supplies cost is an element of variable manufacturing overhead. The
variable overhead efficiency variance for supplies cost is: A. $580 Unfavorable
B. $190 Unfavorable
C. $509 Unfavorable
D. $319 Favorable
86. Machain Corporation applies manufacturing overhead to products on the basis of
standard machine-hours. The company's standard variable manufacturing overhead rate
is $2.90 per machine-hour. The actual variable manufacturing overhead cost for the
month was $15,270. The original budget for the month was based on 5,000 machinehours. The company actually worked 5,090 machine-hours during the month. The
standard hours allowed for the actual output of the month totaled 5,200 machine-hours.
What was the variable overhead efficiency variance for the month? 19,900
4,700
8,800
$74,600
The company actually worked 3,690 machine-hours during the month. The standard
hours allowed for the actual output were 3,620 machine-hours for the month. What was
the overall variable overhead efficiency variance for the month? Supervision
Utilities
Factory depreciation
Total overhead cost
D. $1.15 per MH
98.
95.
$22.70
$40,300
Total expenses
4.70
0.40
6,800
Variable
9,500
Fixe
d
ele
men
Revenue
Variabl
e
Fixed
element eleme
per nt per
month tenantday
− $36.00
Data used in budgeting:
Vanderhyde 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
3,300 tenant-days, but its actual level of activity was 3,340 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for May:
A. $28,473
B. $27,260
C. $28,818
D. $27,548
The wages and salaries in the planning budget for May would be closest to:
$7,886
$124,83
0
$28,818
$44,652
$24,218
$21,300 $25.60
Wages and salaries
Foods and supplies
Facility expenses
Administrative
expenses
Revenue
Actual results for May:
expenses
Administrative
expenses
Total expenses
Ruetz Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 2,500 client-visits, but its actual level of activity was 2,520 client-visits. The
clinic has provided the following data concerning the formulas to be used in its budgeting:
A. $22,950
B. $22,474
C. $23,124
D. $22,835
The medical supplies in the flexible budget for November would be closest to: 1.20
0.30
8,200
4,700
Occupancy expenses
8.70
$12.50
$44.00
Variable
element per
client-visit
Administrative expenses
1,200
$26,200
-
Medical supplies
Personnel expenses
Revenue
Fixed element
per month
94. Ruetz Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 2,500 client-visits, but its actual level of activity was 2,520 client-visits. The
clinic has provided the following data concerning the formulas to be used in its budgeting:
99.
96.
element per
t client-visit
per
mon
th
−
$44.00
$26,
$12.50
200
1,20
8.70
0
8,20
1.20
0
4,
0.30
700
$40,
$22.70
300
$7,886
Data used in budgeting:
Fixed
Variabl
e
eleme
Vanderhyde 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
3,300 tenant-days, but its actual level of activity was 3,340 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for May:
A. $7,792
B. $7,886
C. $8,136
D. $8,120
The administrative expenses in the planning budget for May would be closest to:
Wages and salaries
Foods and supplies
Facility expenses
Administrative
expenses
Revenue
$124,83
0
$28,818
$44,652
$24,218
$21,300 $25.60
0.40
4.70
6,800
13.30
9,500
$7.20
1,500
$3,500
Fixe
d
ele
Variable
men element per
t client-visit
per
mon
th
−
$44.00
Actual results for May:
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total expenses
Revenue
Ruetz Clinic uses client-visits as its measure of activity. During November, the clinic
budgeted for 2,500 client-visits, but its actual level of activity was 2,520 client-visits. The
clinic has provided the following data concerning the formulas to be used in its budgeting:
A. $11,016
B. $11,224
C. $11,200
D. $11,193
The occupancy expenses in the flexible budget for November would be closest to:
Total expenses
Occupancy
expenses
Administrative
expenses
Medical supplies
Revenue
Personnel
expenses
$22.70
0.30
1.20
8.70
$12.50
0.40
4.70
13.30
$7.20
A. $13,020
B. $19,025
C. $13,436
D. $19,489
The net operating income in the planning budget for May would be closest to:
$7,886
$124,83
0
$28,818
$44,652
$24,218
$21,300 $25.60
6,800
9,500
1,500
$3,500
Wages and salaries
Foods and supplies
Facility expenses
Administrative
expenses
Revenue
13.30
$7.20
element
per nt per
month tenantday
− $36.00
1,500
$3,500
Variabl
e
Fixed
element eleme
per nt per
month tenantday
− $36.00
Actual results for May:
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total expenses
Revenue
Wages and
salaries
Food and
supplies
Facility
Data used in budgeting:
Vanderhyde 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
3,300 tenant-days, but its actual level of activity was 3,340 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for May:
A. $9,461
B. $12,950
C. $9,312
D. $13,376
Variable
100.Zelenka Clinic uses client-visits as its measure of activity. During June, the clinic
budgeted for 2,700 client-visits, but its actual level of activity was 2,710 client-visits. The
clinic has provided the following data concerning the formulas to be used in its budgeting
for June:
97.
$26,
200
1,20
0
8,20
0
4,
700
$40,
300
The net operating income in the flexible budget for November would be closest to:
Total expenses
Occupancy
expenses
Administrative
expenses
Medical supplies
Personnel
expenses
105.
104.
101.
6.20
1.40
0.10
$23.20
1,700
10,800
5,400
$50,200
$32,300 $15.50
Variabl
e
Fixed
element eleme
per nt per
month clientvisit
− $47.80
2.60
9,600
$21,900
7,700
14.00
1,200
0.3
0
$24.2
0
$7.30
$3,400
−
Fixed
element
per
month
Variabl
e
eleme
nt per
tenantday
$37.10
Gandrud 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 June, the kennel budgeted for
2,600 tenant-days, but its actual level of activity was 2,580 tenant-days. The kennel has
provided the following data concerning the formulas to be used in its budgeting:
A. $16,308
B. $16,360
C. $16,223
D. $15,974
The facility expenses in the flexible budget for June would be closest to:
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total
expenses
Gandrud 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 June, the kennel budgeted for
2,600 tenant-days, but its actual level of activity was 2,580 tenant-days. The kennel has
provided the following data concerning the formulas to be used in its budgeting:
D. $37,320
Revenue
Personnel
expenses
Medical
Zelenka Clinic uses client-visits as its measure of activity. During June, the clinic
budgeted for 2,700 client-visits, but its actual level of activity was 2,710 client-visits. The
clinic has provided the following data concerning the formulas to be used in its budgeting
for June:
A. $5,671
B. $5,511
C. $5,531
D. $5,670
The administrative expenses in the planning budget for June would be closest to: $15.50
element
per
clientvisit
$47.80
$32,300
Personnel
expenses
Medical
supplies
Occupanc
y
expenses
Administra
tive
expenses
Total
expenses
-
Revenue
Fixed
element
per
month
106.
102.
1,700
$50,200
5,400
10,800
6.20
0.1
0
$23.2
0
1.40
$21,900
7,700
9,600
1,200
$3,400
0.3
0
$24.2
0
2.60
14.00
$7.30
Variabl
e
Fixed
element eleme
per nt per
month tenantday
− $37.10
$50,200
5,400
1.40
10,800
0.1
0
$23.2
0
6.20
1,700
$32,300 $15.50
−
Fixed
element
per
month
Variabl
e
eleme
nt per
clientvisit
$47.80
Fixed
element
per
month
Data used in budgeting:
Variabl
e
eleme
nt per
clientvisit
Labombard Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 3,600 client-visits, but its actual level of activity was 3,650 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for February:
A. $11,640
B. $14,332
C. $11,382
D. $14,113
The net operating income in the flexible budget for June would be closest to:
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total
expenses
Revenue
Personnel
expenses
Medical
supplies
Occupancy
expenses
Administrative
expenses
Total
expenses
Zelenka Clinic uses client-visits as its measure of activity. During June, the clinic
budgeted for 2,700 client-visits, but its actual level of activity was 2,710 client-visits. The
clinic has provided the following data concerning the formulas to be used in its budgeting
for June:
A. $18,384
B. $16,466
C. $16,220
D. $18,248
The net operating income in the planning budget for June would be closest to:
supplies
Occupancy
expenses
Administrative
expenses
Total
expenses
107.
103.
The medical supplies in the flexible budget for June would be closest to:
$21,900
7,700
9,600
1,200
$3,400
0.3
0
$24.2
0
2.60
14.00
$7.30
Variabl
e
Fixed
element eleme
per nt per
month tenantday
− $37.10
$37,200
$84,290
$47,075
$14,700
$10,110
$4,920
Data used in budgeting:
Labombard Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 3,600 client-visits, but its actual level of activity was 3,650 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for February:
A. $47,635
B. $47,340
C. $47,075
D. $46,430
The personnel expenses in the planning budget for February would be closest to:
Revenue
Personnel expenses
Medical supplies
Occupancy expenses
Administrative expenses
0.2
0
$11.1
0
1.00
6,300
4,000
4.00
800
$5.90
− $23.60
$26,100
Actual results for February:
Revenue
Personnel
expenses
Medical
supplies
Occupancy
expenses
Administrative
expenses
Total
expenses
A. $36,993
B. $37,569
C. $37,600
The food and supplies in the flexible budget for June would be closest to:
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total
expenses
Gandrud 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 June, the kennel budgeted for
2,600 tenant-days, but its actual level of activity was 2,580 tenant-days. The kennel has
provided the following data concerning the formulas to be used in its budgeting:
A. $17,717
B. $17,587
C. $18,502
D. $18,440
111.
108.
$37,200
4,000
1.00
$84,290
$47,075
$14,700
$10,110
$4,920
$87,446
$19,796
$27,262
$25,004
$8,704
7,000
Administrative expenses
Zenon 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 July, the kennel budgeted for
3,300 tenant-days, but its actual level of activity was 3,260 tenant-days. The kennel has
A. $25,311
B. $24,770
C. $24,701
D. $24,574
The facility expenses in the flexible budget for July would be closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
Actual results for July:
$20,000
1,000
8,600
Food and supplies
Facility expenses
Total expenses
$3,400
−
Fixed element
per month
Wages and salaries
Revenue
Varia
ble
elem
ent
per
tena
ntday
$27.
60
$5.1
0
8.20
4.90
0
.40
$18
.60
Labombard Clinic uses client-visits as its measure of activity. During February, the clinic
budgeted for 3,600 client-visits, but its actual level of activity was 3,650 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
A. $4,853
B. $4,920
C. $4,720
D. $4,730
The administrative expenses in the planning budget for February would be closest to:
Revenue
Personnel expenses
Medical supplies
Occupancy expenses
Administrative expenses
0.2
0
$11.1
0
4.00
800
$5.90
6,300
$26,100
Actual results for February:
Revenue
Personnel
expenses
Medical
supplies
Occupancy
expenses
Administrative
expenses
Total
expenses
Variabl
e
Fixed
element eleme
per nt per
month clientvisit
− $23.60
$37,200
$84,290
$47,075
$14,700
$10,110
$4,920
$87,446
$19,796
$27,262
$25,004
$8,704
A. $9,700
B. $6,599
C. $6,762
The net operating income in the flexible budget for July would be
closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
Actual results for July:
0.40
$18.60
7,000
$20,000
Administrative expenses
Total expenses
8.20
$5.10
$27.60
Variable
element per
tenant-day
4.90
1,000
$3,400
−
Fixed element
per month
8,600
Facility expenses
Food and supplies
Wages and salaries
Revenue
Data used in budgeting:
provided the following data concerning the formulas used in its budgeting and its actual
results for July:
A. $7,382
B. $7,800
C. $8,425
D. $7,589
The net operating income in the planning budget for February would be closest to:
Revenue
Personnel expenses
Medical supplies
Occupancy expenses
Administrative expenses
0.2
0
$11.1
0
1.00
6,300
4,000
4.00
$5.90
800
$26,100
Variabl
e
Fixed
element eleme
per nt per
clientmonth
visit
− $23.60
Actual results for February:
Revenue
Personnel
expenses
Medical
supplies
Occupancy
expenses
Administrative
expenses
Total
expenses
Data used in budgeting:
its actual results for February:
112.
110.
$5.10
8.20
4.90
0.40
$18.60
1,000
8,600
7,000
$20,000
Actual results for February:
Fixe
Varia
d
ble
elem
elem
ent
ent
per
per
mont
unit
h
Revenu
$31.
−
e
10
Direct
$3.3
$0
labor
0
Direct
material
0 9.00
s
Manufac
44,6
turing
1.80
00
overhea
d
Selling
and
26
0.
administ
,700
10
rative
expense
s
Total
$71 $14
expense
,300 .20
s
Data used in budgeting:
Prater Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During February, the
company budgeted for 5,400 units, but its actual level of activity was 5,380 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for February:
D. $9,340
Data used in budgeting:
Zenon 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 July, the kennel budgeted for
3,300 tenant-days, but its actual level of activity was 3,260 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for July:
A. $27,732
B. $27,597
C. $28,060
D. $26,932
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
$87,446
$19,796
$27,262
$25,004
$8,704
$27.60
$3,400
Variable element per
tenant-day
Fixed element per
month
-
Actual results for July:
Revenue
Wages and
salaries
Food and supplies
Facility expenses
Administrative
expenses
Total expenses
Data used in budgeting:
109.Zenon 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 July, the kennel budgeted for
3,300 tenant-days, but its actual level of activity was 3,260 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for July:
115.
113.
$169,6
48
$18,16
Direct labor
4
$50,81
Direct materials
0
$53,73
Manufacturing overhead
4
Selling and administrative $28,27
expenses
8
95,04
0
21,1
20
116,1
60
$210,
240
$72,0
00
22,0
80
94,0
80
9,600
The total variable cost at the activity level of 10,200 guest-days per month should be:
Total cost
Total fixed cost
costs
and salaries
Occupancy
Wages
Budgeted fixed costs:
Total variable cost
Budgeted number of
guest-days
Budgeted variable costs:
Supplies (@ $7.50 per
guest-day)
Laundry (@ $2.30 per
guest-day)
Bard Hotel bases its budgets on guest-days. The hotel's static budget for January
appears below:
A. $19,960
B. $18,593
C. $18,731
D. $19,622
The net operating income in the flexible budget for February would be closest to:
Direct materials
$50,81
0
$53,73
Manufacturing overhead
4
Selling and administrative $28,27
expenses
8
Fixe
Varia
d
ble
elem
elem
ent
ent
per
per
mont
unit
h
Revenu
$31.
−
e
10
Direct
$3.3
$0
labor
0
Data used in budgeting:
Prater Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During February, the
company budgeted for 5,400 units, but its actual level of activity was 5,380 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for February:
A. $17,754
B. $17,820
C. $18,164
D. $18,232
The direct labor in the planning budget for February would be closest to:
Revenue
A. $123,420
B. $99,960
C. $94,080
D. $116,160
Prater Corporation manufactures and sells a single product. The company uses units as
117.
95,04
0
21,
120
116,1
60
$210,
240
$72,0
00
22,
080
94,0
80
9,600
Bard Hotel bases its budgets on guest-days. The hotel's static budget for January
appears below:
A. $210,240
B. $232,140
C. $116,160
D. $128,260
The total fixed cost at the activity level of 10,600 guest-days per month should be: Total cost
Total fixed cost
costs
and salaries
Occupancy
Wages
Budgeted fixed costs:
Total variable cost
Budgeted number of
guest-days
Budgeted variable costs:
Supplies (@ $7.50 per
guest-day)
Laundry (@ $2.30 per
guest-day)
116.Bard Hotel bases its budgets on guest-days. The hotel's static budget for January
appears below:
114.
A. $53,934
B. $54,284
C. $54,320
D. $53,535
The manufacturing overhead in the flexible budget for February would be closest to:
Revenue
$169,6
48
$18,16
Direct labor
4
$50,81
Direct materials
0
$53,73
Manufacturing overhead
4
Selling and administrative $28,27
expenses
8
Actual results for February:
Direct
material
0 9.00
s
Manufac
turing
44,6
1.80
overhea
00
d
Selling
and
administ
26
0.
rative
,700
10
expense
s
Total
$71 $14
expense
,300 .20
s
A. $225,570
B. $217,100
C. $217,640
D. $210,240
Budgeted number of
6,800
patient-visits
Budgeted variable costs:
Supplies (@ $4.80 per $32,64
patient-visit)
0
45,
Laundry (@ $6.70 per
560
patient-visit)
78,
Total variable cost
200
118.Hettinger Hospital bases its budgets on patient-visits. The hospital's static budget for
March appears below:
95,04
0
21,
120
116,
160
$210,
240
$72,0
00
22,
080
94,0
80
9,600
$169,6
48
$18,16
4
The total cost at the activity level of 10,300 guest-days per month should be:
Total cost
Total fixed cost
costs
and salaries
Occupancy
Wages
Budgeted fixed costs:
Total variable cost
Budgeted number of
guest-days
Budgeted variable costs:
Supplies (@ $7.50 per
guest-day)
Laundry (@ $2.30 per
guest-day)
Direct labor
Revenue
Actual results for February:
Fixe
Varia
d
ble
elem
elem
ent
ent
per
per
mont
unit
h
Revenu
$31.
−
e
10
Direct
$3.3
$0
labor
0
Direct
material
0 9.00
s
Manufac
turing
44,6
1.80
00
overhea
d
Selling
and
26
0.
administ
,700
10
rative
expense
s
Total
$71 $14
expense
,300 .20
s
Data used in budgeting:
the measure of activity in its budgets and performance reports. During February, the
company budgeted for 5,400 units, but its actual level of activity was 5,380 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for February:
Occupancy costs
A. $82,800
B. $78,200
C. $109,480
D. $115,920
The total variable cost at the activity level of 7,200 patient-visits per month should be: Total cost
Total fixed cost
42,160
67,
320
109,
480
$187,
680
$17
.40
$77,700
A. $32,396
B. $33,608
C. $33,580
D. $32,598
Fixed
123.Illescas Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During December, the
company budgeted for 6,400 units, but its actual level of activity was 6,440 units. The
company has provided the following data concerning the formulas to be used in its
budgeting:
0.
70
29,100
48,600 1.70
0 8.70
ble
Fixed element elem
per month ent
per
unit
$32.
−
50
$6.3
$0
0
The selling and administrative expenses in the planning budget for December would be
closest to:
Revenu
e
Direct
labor
Direct
material
s
Manufac
turing
overhea
d
Selling
and
administ
rative
expense
s
Total
expense
s
A. $123,970
The total fixed cost at the activity level of 7,700 patient-visits per month should be: Budgeted number of
6,800
patient-visits
Budgeted variable costs:
Supplies (@ $4.80 per $32,64
patient-visit)
0
Laundry (@ $6.70 per
45,5
60
patient-visit)
78,2
Total variable cost
00
Budgeted fixed costs:
42,160
Wages and salaries
67,3
Occupancy costs
20
109,4
Total fixed cost
80
$187,
Total cost
680
119.Hettinger Hospital bases its budgets on patient-visits. The hospital's static budget for
March appears below:
Budgeted fixed costs:
and salaries
Wages
124.
121.
$32.50
$6.30
8.70
1.70
0.70
$17.40
48,600
29,100
$77,70
0
Variable
element
per unit
element
per
month
$0
0
Varia
ble
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
1.70
0.50
22,800
$39.20
$5.40
13.20
Variable
element
per unit
45,800
0
Fixed
element
per
month
−
$0
Dancause Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During October, the
company budgeted for 5,100 units, but its actual level of activity was 5,090 units. The
company has provided the following data concerning the formulas to be used in its
budgeting:
A. $19,433
B. $18,940
C. $19,676
D. $19,544
The net operating income in the planning budget for December would be closest to: Total expenses
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Illescas Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During December, the
company budgeted for 6,400 units, but its actual level of activity was 6,440 units. The
company has provided the following data concerning the formulas to be used in its
budgeting:
A. $187,680
B. $194,200
C. $201,480
D. $193,430
The total cost at the activity level of 7,300 patient-visits per month should be: Budgeted number of
6,800
patient-visits
Budgeted variable costs:
Supplies (@ $4.80 per $32,64
patient-visit)
0
45,5
Laundry (@ $6.70 per
60
patient-visit)
78,2
Total variable cost
00
Budgeted fixed costs:
42,160
Wages and salaries
67,3
Occupancy costs
20
109,
Total fixed cost
480
$187,
Total cost
680
120.Hettinger Hospital bases its budgets on patient-visits. The hospital's static budget for
March appears below:
B. $187,680
C. $212,520
D. $109,480
125.
122.
$77,700
29,100
$68,60
0
$20.80
$68,60
0
22,800
45,800
0
Fixed
element
per
month
−
$0
$20.80
0.50
1.70
$39.20
$5.40
13.20
Variable
element
per unit
A. $54,453
B. $54,470
C. $52,739
The manufacturing overhead in the flexible budget for October would be closest to:
Total expenses
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Dancause Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During October, the
company budgeted for 5,100 units, but its actual level of activity was 5,090 units. The
company has provided the following data concerning the formulas to be used in its
budgeting:
A. $67,320
B. $64,905
C. $64,651
D. $67,188
The direct materials in the flexible budget for October would be closest to:
Total expenses
Varia
Illescas Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During December, the
company budgeted for 6,400 units, but its actual level of activity was 6,440 units. The
company has provided the following data concerning the formulas to be used in its
budgeting:
A. $40,412
B. $40,572
C. $40,161
D. $40,320
$17
.40
0.
70
48,600 1.70
0 8.70
Fixed element elem
per month ent
per
unit
$32.
−
50
$6.3
$0
0
The direct labor in the planning budget for December would be closest to:
Revenu
e
Direct
labor
Direct
material
s
Manufac
turing
overhea
d
Selling
and
administ
rative
expense
s
Total
expense
s
1.70
0.50
$20.80
22,800
$68,60
0
$39.20
$5.40
13.20
Variable
element
per unit
45,800
0
Fixed
element
per
month
−
$0
$36.80
$3.70
17.80
1.20
0.30
$23.00
30,500
26,800
$57,300
Variable
element
per unit
Fixed
element
per
month
$0
0
A. $21,360
B. $21,222
C. $13,606
D. $13,558
The net operating income in the planning budget for February would be closest to: Revenue
$207,3
02
$21,09
Direct labor
3
$104,9
Direct materials
52
$37,88
Manufacturing overhead
8
Selling and administrative $29,78
expenses
7
Actual results for February:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Data used in budgeting:
company has provided the following data concerning the formulas used in its budgeting
and its actual results for February:
Data used in budgeting:
Nicolaysen Corporation manufactures and sells a single product. The company uses
units as the measure of activity in its budgets and performance reports. During February,
the company budgeted for 5,700 units, but its actual level of activity was 5,690 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for February:
A. $33,869
B. $25,240
C. $34,003
D. $25,056
The net operating income in the flexible budget for October would be closest to:
Total expenses
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Dancause Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During October, the
company budgeted for 5,100 units, but its actual level of activity was 5,090 units. The
company has provided the following data concerning the formulas to be used in its
budgeting:
D. $52,947
130.Lehnertz Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During February, the
company budgeted for 7,100 units, but its actual level of activity was 7,150 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for February:
127.
126.
A. $21,093
B. $21,090
C. $21,130
D. $21,053
The direct labor in the planning budget for February would be closest to:
Revenue
$23.00
A. $74,456
B. $75,508
C. $76,680
D. $77,220
The direct materials in the flexible budget for February would be closest to: $16.80
131.Lehnertz Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During February, the
company budgeted for 7,100 units, but its actual level of activity was 7,150 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for February:
$55,800
0.70
1.20
34,000
21,800
$27.70
$4.10
10.80
Variable
element
per unit
Fixed
element
per
month
$0
0
$205,4
85
$29,36
Direct labor
5
$74,98
Direct materials
0
$43,02
Manufacturing overhead
0
Selling and administrative $27,50
expenses
5
Revenue
Actual results for February:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Data used in budgeting:
128.Nicolaysen Corporation manufactures and sells a single product. The company uses
units as the measure of activity in its budgets and performance reports. During February,
the company budgeted for 5,700 units, but its actual level of activity was 5,690 units. The
$57,300
0.30
1.20
30,500
26,800
$36.80
$3.70
17.80
Variable
element
per unit
Fixed
element
per
month
−
$0
0
$207,3
02
$21,09
Direct labor
3
$104,9
Direct materials
52
$37,88
Manufacturing overhead
8
Selling and administrative $29,78
expenses
7
Actual results for February:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
A. $29,787
B. $28,507
C. $29,839
D. $28,510
The selling and administrative expenses in the planning budget for February would be
closest to: $23.00
The manufacturing overhead in the flexible budget for February would be closest to: A. $43,323
B. $42,520
C. $42,580
D. $42,719
Data used in budgeting:
132.Lehnertz Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During February, the
company budgeted for 7,100 units, but its actual level of activity was 7,150 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for February:
0.70
$16.80
21,800
1.20
34,000
$55,800
$27.70
$4.10
10.80
Variable
element
per unit
Fixed
element
per
month
$0
0
$205,4
85
$29,36
5
$74,98
Direct materials
0
$43,02
Manufacturing overhead
0
Selling and administrative $27,50
expenses
5
Direct labor
Revenue
Actual results for February:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Data used in budgeting:
129.Nicolaysen Corporation manufactures and sells a single product. The company uses
units as the measure of activity in its budgets and performance reports. During February,
the company budgeted for 5,700 units, but its actual level of activity was 5,690 units. The
$57,300
0.30
1.20
30,500
26,800
$36.80
$3.70
17.80
Variable
element
per unit
Fixed
element
per
month
$0
0
$207,3
02
$21,09
3
$104,9
Direct materials
52
$37,88
Manufacturing overhead
8
Selling and administrative $29,78
expenses
7
Direct labor
Revenue
Actual results for February:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Data used in budgeting:
company has provided the following data concerning the formulas used in its budgeting
and its actual results for February:
0.70
$16.80
21,800
$55,800
Hepburn Clinic uses client-visits as its measure of activity. During July, the clinic
budgeted for 3,200 client-visits, but its actual level of activity was 3,180 client-visits. The
clinic has provided the following data concerning the formulas to be used in its budgeting
for July:
A. $21,590
B. $30,401
C. $30,831
D. $22,135
137.
2.00
9,100
6,20
0.40
0
$19,60
$20.20
0
12.40
700
$5.40
$3,600
Variabl
Fixed
e
elemen elemen
t per
t per
month tenantday
- $31.10
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:
A. $18,344
B. $18,606
C. $18,720
D. $18,936
The wages and salaries in the planning budget for May would be closest to: Total expenses
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Revenue
136.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:
1.20
34,000
The net operating income in the flexible budget for February would be closest to: Revenue
A. $22,183
B. $15,434
C. $21,906
D. $15,860
133.
$27.70
$4.10
10.80
$205,4
85
$29,36
Direct labor
5
$74,98
Direct materials
0
$43,02
Manufacturing overhead
0
Selling and administrative $27,50
expenses
5
Actual results for February:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Variable
element
per unit
Fixed
element
per
month
$0
0
A. $76,494
B. $79,860
C. $79,594
D. $76,975
0.
10
$24.
30
139.
138.
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:
A. $7,026
B. $6,927
C. $7,336
D. $7,320
The administrative expenses in the planning budget for May would be closest to:
$20
.20
$24.30
0.10
2.40
8.50
$13.30
$45.60
Variable
element per
client-visit
Data used in budgeting:
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:
A. $10,920
B. $10,437
C. $11,356
D. $10,737
The net operating income in the planning budget for May would be closest to:
$20
.20
0.
40
Administ
6,
rative
expense 200
s
Total
$19
expense
,600
s
0.
40
$52,300
The net operating income in the planning budget for July would be closest to: Total expenses
Administ
6,
rative
expense 200
s
Total
$19
expense
,600
s
$13.30
$45.60
4,100
9,800
Administrative expenses
1,100
Occupancy expenses
$37,300
-
Fixed element
per month
Medical supplies
Personnel expenses
Revenue
Varia
Fixe ble
d elem
elem ent
ent per
per tena
mont nth day
Revenu
$31.
−
e
10
Wages
$3,6 $5.4
and
00
0
salaries
Food
12.4
and
700
0
supplies
Facility
9,10
expense
2.00
0
s
$37,300
-
Variable
element per
client-visit
A. $4,568
B. $4,418
C. $4,597
D. $4,420
135 Hepburn Clinic uses client-visits as its measure of activity. During July, the clinic
.
budgeted for 3,200 client-visits, but its actual level of activity was 3,180 client-visits. The
clinic has provided the following data concerning the formulas to be used in its budgeting
for July:
$24.30
$52,300
Total expenses
The administrative expenses in the planning budget for July would be closest to: 0.10
2.40
8.50
4,100
9,800
1,100
Administrative expenses
Occupancy expenses
Medical supplies
Varia
Fixe ble
d elem
elem ent
ent per
per tena
mont nth day
Revenu
$31.
−
e
10
Wages
$3,6 $5.4
and
00
0
salaries
Food
12.4
and
700
0
supplies
Facility
9,10
expense
2.00
0
s
Personnel expenses
Revenue
Fixed element
per month
134 Hepburn Clinic uses client-visits as its measure of activity. During July, the clinic
.
budgeted for 3,200 client-visits, but its actual level of activity was 3,180 client-visits. The
clinic has provided the following data concerning the formulas to be used in its budgeting
for July:
$52,300
4,100
9,800 2.40
1,100 8.50
$37,300
−
Fixed element
per month
The personnel expenses in the planning budget for July would be closest to:
Total expenses
Personnel
expenses
Medical
supplies
Occupancy
expenses
Administrative
expenses
Revenue
Varia
ble
elem
ent
per
clien
tvisit
$45.
60
$13.
30
142.
2.50
0.40
8,200
6,000
$6,880
1.10
8,800
Revenue
$115,860
$50,200
0.4
0
$14.1
0
4.50
1,800
3,900
$8.10
$35,700
Actual results for March:
Revenue
Personnel
expenses
Medical
supplies
Occupancy
expenses
Administrative
expenses
Total
expenses
Variabl
e
Fixed
element eleme
per nt per
month clientvisit
− $31.00
Data used in budgeting:
Jiminian Clinic uses client-visits as its measure of activity. During March, the clinic
budgeted for 3,700 client-visits, but its actual level of activity was 3,660 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for March:
A. $16,900
B. $23,450
C. $18,140
D. $22,539
The net operating income in the flexible budget for February would be closest to:
Administrative
expenses
A. $68,642
B. $70,015
C. $69,125
D. $68,350
The personnel expenses in the planning budget for February would be closest to:
$6,880
$138,87
5
$70,015
$24,335
$14,655
$45,100 $27.50
9.10
1,300
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
Revenue
Variabl
e
eleme
nt per
clientvisit
$52.30
$29,600 $15.50
−
Fixed
element
per
month
Actual results for February:
Revenue
Personnel
expenses
Medical
supplies
Occupancy
expenses
Administrative
expenses
Total
expenses
143.
140.
$5,224
$66,226
$18,810
$12,356
Revenue
Personnel
expenses
Medical
supplies
Occupancy
expenses
Administrative
expenses
Total
expenses
1.10
8,800
$50,200
0.4
0
$14.1
0
4.50
1,800
3,900
$8.10
$35,700
Variabl
e
Fixed
element eleme
per nt per
month clientvisit
− $31.00
Data used in budgeting:
Jiminian Clinic uses client-visits as its measure of activity. During March, the clinic
budgeted for 3,700 client-visits, but its actual level of activity was 3,660 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for March:
A. $18,270
B. $18,607
C. $18,450
D. $19,016
The medical supplies in the flexible budget for March would be closest to:
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
The occupancy expenses in the flexible budget for February would be closest to:
$6,880
$138,87
5
$70,015
$24,335
$14,655
$45,100 $27.50
0.40
2.50
8,200
6,000
9.10
1,300
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
Revenue
−
Variabl
e
eleme
nt per
clientvisit
$52.30
$29,600 $15.50
Actual results for February:
Revenue
Personnel
expenses
Medical
supplies
Occupancy
expenses
Administrative
expenses
Total
expenses
Fixed
element
per
month
Data used in budgeting:
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:
144.
141.
$5,224
$115,860
$66,226
$18,810
$12,356
Revenue
Personnel
expenses
Medical
supplies
Occupancy
expenses
Administrative
expenses
1.10
0.4
0
3,900
4.50
$8.10
8,800
1,800
$35,700
Variabl
e
Fixed
element eleme
per nt per
clientmonth
visit
− $31.00
Data used in budgeting:
Jiminian Clinic uses client-visits as its measure of activity. During March, the clinic
budgeted for 3,700 client-visits, but its actual level of activity was 3,660 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for March:
A. $12,870
B. $12,491
C. $12,222
D. $12,826
The occupancy expenses in the flexible budget for March would be closest to:
Revenue
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
Actual results for March:
Personnel expenses
Medical supplies
Occupancy expenses
Revenue
$138,87
5
$70,015
$24,335
$14,655
$45,100 $27.50
0.40
2.50
8,200
6,000
9.10
1,300
$29,600 $15.50
Actual results for February:
Revenue
Personnel
expenses
Medical
supplies
Occupancy
expenses
Administrative
expenses
Total
expenses
Variabl
e
Fixed
element eleme
per nt per
month clientvisit
− $52.30
Data used in budgeting:
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:
A. $14,450
B. $14,575
C. $14,948
D. $14,368
145.
$5,224
11.20
2.70
900
$7.70
8,500
$2,100
$73,868
$17,116
$21,883
$19,656
$6,624
A. $17,480
B. $17,116
C. $17,364
D. $17,276
The wages and salaries in the planning budget for June would be closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
0.2
0
$21.7
0
4.80
6,200
9.90
500
$6.80
Variabl
e
eleme
nt per
tenantday
$35.40
9,300
$3,200
−
$19,200
Actual results for June:
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total
expenses
Fixed
element
per
month
Data used in budgeting:
2,100 tenant-days, but its actual level of activity was 2,070 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for June:
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Variabl
e
Fixed
element eleme
per nt per
month tenantday
− $31.70
Wales 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 2,700 tenant-days, but its actual level of activity was 2,730 tenant-days. The kennel
has provided the following data concerning the formulas to be used in its budgeting:
A. $11,654
B. $13,101
C. $12,330
D. $13,389
The net operating income in the flexible budget for March would be closest to:
Revenue
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
$14.1
0
$115,860
$66,226
$18,810
$12,356
$50,200
Actual results for March:
Total
expenses
149.
146.
6,700
0.10
$18,200 $21.70
0.10
6,700
$18,200 $21.70
2.70
11.20
$7.70
8,500
900
$2,100
−
Fixed
element
per
month
4.80
9,300
$19,200
$73,868
$17,116
$21,883
$19,656
$6,624
The facility expenses in the flexible budget for June would be closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
0.2
0
$21.7
0
9.90
500
6,200
$6.80
$3,200
Variabl
e
Fixed
element eleme
per nt per
month tenantday
− $35.40
Actual results for June:
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total
expenses
Data used in budgeting:
Ordway 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 June, the kennel budgeted for
2,100 tenant-days, but its actual level of activity was 2,070 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for June:
The net operating income in the planning budget for February would be closest to:
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total
expenses
Variabl
e
eleme
nt per
tenantday
$31.70
Wales 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 2,700 tenant-days, but its actual level of activity was 2,730 tenant-days. The kennel
has provided the following data concerning the formulas to be used in its budgeting:
A. $6,639
B. $6,713
C. $6,970
D. $6,973
The administrative expenses in the planning budget for February would be closest to:
Administrative
expenses
Total
expenses
0.10
2.70
11.20
$7.70
$18,200 $21.70
6,700
8,500
900
$2,100
Variabl
e
Fixed
element eleme
per nt per
month tenantday
− $31.70
A. $19,941
B. $19,236
C. $19,375
D. $19,380
Ordway 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 June, the kennel budgeted for
A. $31,017
B. $30,339
C. $31,476
D. $31,140
The food and supplies in the flexible budget for February would be closest to:
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total
expenses
Wales 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 2,700 tenant-days, but its actual level of activity was 2,730 tenant-days. The kennel
has provided the following data concerning the formulas to be used in its budgeting:
$19,200
6,200
9,300
500
$3,200
$73,868
$17,116
$21,883
$19,656
$6,624
A. $8,713
B. $9,159
The net operating income in the flexible budget for June would be closest to: Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
0.2
0
$21.7
0
4.80
9.90
$6.80
Variabl
e
Fixed
element eleme
per nt per
tenantmonth
day
- $35.40
Actual results for June:
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total
expenses
Data used in budgeting:
150.Ordway 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 June, the kennel budgeted for
2,100 tenant-days, but its actual level of activity was 2,070 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for June:
148.
147.
A. $9,100
B. $12,123
C. $8,800
D. $11,858
1.80
0.20
$16.80
46,700
27,80
0
$74,50
0
A. $29,200
B. $29,884
C. $29,194
D. $30,013
D. $52 U
Fixed
element
per
month
-
$30.40
Variable
element
per unit
The manufacturing overhead in the planning budget for July would be closest to: 160.Eberley Corporation's cost formula for its manufacturing overhead is $25,700 per month
plus $10 per machine-hour. For the month of July, the company planned for activity of
5,900 machine-hours, but the actual level of activity was 5,920 machine-hours. The
actual manufacturing overhead for the month was $86,800.
A. $145 F
B. $145 U
C. $95 F
D. $95 U
The spending variance for materials and supplies in November would be closest to: 159.Larance Detailing's cost formula for its materials and supplies is $2,230 per month plus
$1 per vehicle. For the month of November, the company planned for activity of 75
vehicles, but the actual level of activity was 25 vehicles. The actual materials and
supplies for the month was $2,160.
A. $2,305
B. $768
C. $2,255
D. $2,160
The materials and supplies in the flexible budget for November would be closest to: 158.Larance Detailing's cost formula for its materials and supplies is $2,230 per month plus
$1 per vehicle. For the month of November, the company planned for activity of 75
vehicles, but the actual level of activity was 25 vehicles. The actual materials and
supplies for the month was $2,160.
A. $2,255
B. $2,160
C. $2,305
D. $6,480
The materials and supplies in the planning budget for November would be closest to: 157.Larance Detailing's cost formula for its materials and supplies is $2,230 per month plus
$1 per vehicle. For the month of November, the company planned for activity of 75
vehicles, but the actual level of activity was 25 vehicles. The actual materials and
supplies for the month was $2,160.
Revenue
152.Letts Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During January, the
company budgeted for 7,000 units, but its actual level of activity was 6,970 units. The
company has provided the following data concerning the formulas to be used in its
budgeting:
$30.40
$6.10
8.70
The selling and administrative expenses in the planning budget for January would be
closest to: Total expenses
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Variable
element
per unit
Fixed
element
per
month
$0
0
151.Letts Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During January, the
company budgeted for 7,000 units, but its actual level of activity was 6,970 units. The
company has provided the following data concerning the formulas to be used in its
budgeting:
C. $8,466
D. $9,570
0.20
$16.80
$74,50
0
1.80
0.20
$16.80
27,80
0
$74,50
0
$30.40
$6.10
8.70
Variable
element
per unit
46,700
Fixed
element
per
month
−
$0
0
A. $84,900
B. $86,800
C. $84,700
D. $86,507
The direct materials in the flexible budget for January would be closest to:
Total expenses
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Letts Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During January, the
company budgeted for 7,000 units, but its actual level of activity was 6,970 units. The
company has provided the following data concerning the formulas to be used in its
budgeting:
A. $20,292
B. $12,988
C. $20,700
D. $12,877
164.Lartey Corporation's cost formula for its selling and administrative expense is $22,200
per month plus $27 per unit. For the month of December, the company planned for
A. $169,107
B. $165,300
C. $168,150
D. $164,490
The selling and administrative expense in the planning budget for December would be
closest to: 163.Lartey Corporation's cost formula for its selling and administrative expense is $22,200
per month plus $27 per unit. For the month of December, the company planned for
activity of 5,300 units, but the actual level of activity was 5,270 units. The actual selling
and administrative expense for the month was $168,150.
A. $2,100 U
B. $1,900 F
C. $1,900 U
D. $2,100 F
The spending variance for manufacturing overhead in July would be closest to: 162.Eberley Corporation's cost formula for its manufacturing overhead is $25,700 per month
plus $10 per machine-hour. For the month of July, the company planned for activity of
5,900 machine-hours, but the actual level of activity was 5,920 machine-hours. The
actual manufacturing overhead for the month was $86,800.
A. $84,900
B. $84,700
C. $84,987
D. $86,800
The manufacturing overhead in the flexible budget for July would be closest to: 161.Eberley Corporation's cost formula for its manufacturing overhead is $25,700 per month
plus $10 per machine-hour. For the month of July, the company planned for activity of
5,900 machine-hours, but the actual level of activity was 5,920 machine-hours. The
actual manufacturing overhead for the month was $86,800.
153.
1.80
27,80
0
$6.10
8.70
46,700
$0
0
The net operating income in the planning budget for January would be closest to: Total expenses
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
166.
Revenue
Wages and
salaries
Food and
supplies
900
$2,400
11.30
$7.00
Fixed Variable
elemen element
t
per
per tenantmonth
day
−
$32.10
Data used in budgeting:
Pearse 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 December, the kennel budgeted
for 3,000 tenant-days, but its actual level of activity was 2,980 tenant-days. The kennel
has provided the following data concerning the formulas used in its budgeting and its
actual results for December:
A. $3,660 F
B. $3,660 U
C. $2,850 F
D. $2,850 U
The spending variance for selling and administrative expense in December would be
closest to: 165.Lartey Corporation's cost formula for its selling and administrative expense is $22,200
per month plus $27 per unit. For the month of December, the company planned for
activity of 5,300 units, but the actual level of activity was 5,270 units. The actual selling
and administrative expense for the month was $168,150.
A. $164,364
B. $164,490
C. $165,300
D. $168,150
The selling and administrative expense in the flexible budget for December would be
closest to: activity of 5,300 units, but the actual level of activity was 5,270 units. The actual selling
and administrative expense for the month was $168,150.
A. $1,648 F
B. $1,648 U
C. $52 F
The spending variance for cleaning equipment and supplies in September would be
closest to: 156.Shelby Boat Wash's cost formula for its cleaning equipment and supplies is $2,200 per
month plus $34 per boat. For the month of September, the company planned for activity
of 82 boats, but the actual level of activity was 32 boats. The actual cleaning equipment
and supplies for the month was $3,340.
A. $1,947
B. $3,288
C. $3,340
D. $4,988
The cleaning equipment and supplies in the flexible budget for September would be
closest to: 155.Shelby Boat Wash's cost formula for its cleaning equipment and supplies is $2,200 per
month plus $34 per boat. For the month of September, the company planned for activity
of 82 boats, but the actual level of activity was 32 boats. The actual cleaning equipment
and supplies for the month was $3,340.
A. $3,288
B. $4,988
C. $3,340
D. $8,559
The cleaning equipment and supplies in the planning budget for September would be
closest to: 154.Shelby Boat Wash's cost formula for its cleaning equipment and supplies is $2,200 per
month plus $34 per boat. For the month of September, the company planned for activity
of 82 boats, but the actual level of activity was 32 boats. The actual cleaning equipment
and supplies for the month was $3,340.
A. $61,564
B. $62,095
C. $60,900
D. $60,639
167.
6,70
0
$18,60
0
8,600
$97,978
$23,530
$35,224
$19,780
$7,404
$22.10
0.30
3.50
$38.10
$7.80
16.50
1.60
0.20
$26.10
39,900
20,600
$60,500
A. $126,681
B. $127,340
The direct materials in the flexible budget for November would be closest to:
Revenue
Variable
element
per unit
Fixed
element
per
month
−
$0
0
$293,0
02
$60,28
Direct labor
6
$127,0
Direct materials
10
$50,34
Manufacturing overhead
2
Selling and administrative $21,10
expenses
4
Actual results for November:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Data used in budgeting:
as the measure of activity in its budgets and performance reports. During November, the
company budgeted for 7,700 units, but its actual level of activity was 7,720 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for November:
Fixed Variable
elemen element
t
per
per tenantmonth
day
Data used in budgeting:
Pearse 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 December, the kennel budgeted
for 3,000 tenant-days, but its actual level of activity was 2,980 tenant-days. The kennel
has provided the following data concerning the formulas used in its budgeting and its
actual results for December:
A. $11,200
B. $12,121
C. $11,960
D. $11,400
The net operating income in the planning budget for December would be closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
Actual results for December:
Facility
expenses
Administrativ
e expenses
Total
expenses
170.
168.
6,70
0
$18,60
0
8,600
$97,978
$23,530
$35,224
$19,780
$7,404
Fixed
$38.10
$7.80
16.50
1.60
0.20
$26.10
39,900
20,600
$60,500
The spending variance for direct materials in November would be closest to:
Revenue
Variable
element
per unit
Fixed
element
per
month
−
$0
0
$293,0
02
$60,28
Direct labor
6
$127,0
Direct materials
10
$50,34
Manufacturing overhead
2
Selling and administrative $21,10
expenses
4
Actual results for November:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Data used in budgeting:
Hairston Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During November, the
company budgeted for 7,700 units, but its actual level of activity was 7,720 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for November:
C. $127,380
D. $127,050
Data used in budgeting:
Hairston Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During November, the
company budgeted for 7,700 units, but its actual level of activity was 7,720 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for November:
A. $11,200
B. $11,400
C. $11,960
D. $12,121
The net operating income in the flexible budget for December would be closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
$22.10
0.30
3.50
11.30
$7.00
900
$32.10
−
$2,400
Actual results for December:
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Administrativ
e expenses
Total
expenses
171.
169.
0.20
$26.10
20,600
1.60
39,900
$60,500
$38.10
$7.80
16.50
Direct labor
Revenue
Actual results for August:
Total expenses
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Data used in budgeting:
$19.30
0.80
1.40
$34.50
$4.40
12.70
Variable
element
per unit
$217,2
60
$29,96
6
$85,11
$77,50
0
29,40
0
48,100
Fixed
element
per
month
−
$0
0
Tabeling Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During August, the
company budgeted for 6,500 units, but its actual level of activity was 6,540 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for August:
A. $40 U
B. $370 U
C. $40 F
D. $370 F
Hairston Corporation manufactures and sells a single product. The company uses units
A. $22,144
B. $21,104
C. $22,140
D. $21,049
The selling and administrative expenses in the planning budget for November would be
closest to:
Revenue
Variable
element
per unit
element
per
month
−
$0
0
$293,0
02
$60,28
Direct labor
6
$127,0
Direct materials
10
$50,34
Manufacturing overhead
2
Selling and administrative $21,10
expenses
4
Actual results for November:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
175.
172.
1.40
0.80
$19.30
48,100
29,40
0
$77,50
0
$7,058
$132,12
4
$74,232
$18,697
$13,213
Buonocore Clinic uses client-visits as its measure of activity. During August, the clinic
budgeted for 2,800 client-visits, but its actual level of activity was 2,770 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for August:
A. $74,232
B. $75,480
C. $75,036
D. $75,012
The personnel expenses in the planning budget for August would be closest to:
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
Revenue
Actual results for August:
$24.00
0.40
1.90
6.10
$15.60
visit
$46.20
$34.50
$4.40
12.70
Variable
element
per unit
Fixed
element
per
month
−
$0
0
month
Revenue
−
Personnel
$31,800
expenses
Medical
1,800
supplies
Occupancy
7,600
expenses
Administrativ
5,900
e expenses
Total
$47,10
expenses
0
Actual results for August:
Total expenses
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Data used in budgeting:
Tabeling Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During August, the
company budgeted for 6,500 units, but its actual level of activity was 6,540 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for August:
A. $21,300
B. $21,908
C. $11,005
D. $10,871
The net operating income in the planning budget for August would be closest to:
Manufacturing overhead
8
$58,14
6
Selling and administrative $33,09
expenses
2
Direct materials
176.
173.
Actual results for August:
$7,058
$132,12
4
$74,232
$18,697
$13,213
$24.00
0.40
1.90
6.10
$15.60
A. $18,697
B. $18,880
C. $18,899
D. $18,497
The medical supplies in the flexible budget for August would be closest to:
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
Revenue
0.80
29,40
0
Fixed Variable
elemen element
t
per
per
clientmonth
visit
−
$46.20
1.40
$34.50
$4.40
12.70
Variable
element
per unit
48,100
Fixed
element
per
month
−
$0
0
Revenue
Personnel
$31,800
expenses
Medical
1,800
supplies
Occupancy
7,600
expenses
Administrativ
5,900
e expenses
$47,10
Total
0
expenses
Data used in budgeting:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Data used in budgeting:
Tabeling Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During August, the
company budgeted for 6,500 units, but its actual level of activity was 6,540 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for August:
A. $21,908
B. $21,300
C. $11,005
D. $10,871
The net operating income in the flexible budget for August would be closest to:
$217,2
60
$29,96
Direct labor
6
$85,11
Direct materials
8
$58,14
Manufacturing overhead
6
Selling and administrative $33,09
expenses
2
Revenue
174.
$77,50
0
$19.30
Fixed Variable
elemen element
t
per
per
client-
$7,058
$132,12
4
$74,232
$18,697
$13,213
A. $4,150 F
B. $2,764 F
The revenue variance for August would be closest to:
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
Revenue
Actual results for August:
$24.00
0.40
1.90
6.10
$15.60
Fixed Variable
elemen element
t
per
per
clientmonth
visit
−
$46.20
Revenue
Personnel
$31,800
expenses
Medical
1,800
supplies
Occupancy
7,600
expenses
Administrativ
5,900
e expenses
Total
$47,10
expenses
0
Data used in budgeting:
Buonocore Clinic uses client-visits as its measure of activity. During August, the clinic
budgeted for 2,800 client-visits, but its actual level of activity was 2,770 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for August:
Data used in budgeting:
Buonocore Clinic uses client-visits as its measure of activity. During August, the clinic
budgeted for 2,800 client-visits, but its actual level of activity was 2,770 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for August:
A. $10,362 F
B. $10,362 U
C. $10,970 F
D. $10,970 U
The overall revenue and spending variance (i.e., the variance for net operating income in
the revenue and spending variance column on the revenue and spending variances
report) for August would be closest to:
Revenue
$217,2
60
$29,96
Direct labor
6
$85,11
Direct materials
8
$58,14
Manufacturing overhead
6
Selling and administrative $33,09
expenses
2
Actual results for August:
Total expenses
180.
177.
$7,058
$132,12
4
$74,232
$18,697
$13,213
$24.00
0.40
1.90
6.10
$15.60
$8,931
$132,19
3
$32,662
$48,918
$23,040
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
13.40
4.00
600
$7.60
9,000
$2,900
Variabl
e
Fixed
element eleme
per nt per
month tenantday
− $33.90
Data used in budgeting:
Juenemann 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 December, the kennel budgeted
for 3,800 tenant-days, but its actual level of activity was 3,770 tenant-days. The kennel
has provided the following data concerning the formulas used in its budgeting and its
actual results for December:
A. $24,080
B. $22,858
C. $23,223
D. $24,200
The facility expenses in the flexible budget for December would be closest to:
Wages and salaries
Food and supplies
Facility expenses
Administrative
expenses
Revenue
The spending variance for medical supplies in August would be closest to:
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
Revenue
Actual results for August:
Revenue
Personnel
$31,800
expenses
Medical
1,800
supplies
Occupancy
7,600
expenses
Administrativ
5,900
e expenses
Total
$47,10
expenses
0
Fixed Variable
elemen element
t
per
per
clientmonth
visit
−
$46.20
Data used in budgeting:
Buonocore Clinic uses client-visits as its measure of activity. During August, the clinic
budgeted for 2,800 client-visits, but its actual level of activity was 2,770 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for August:
C. $2,764 U
D. $4,150 U
181.
178.
$20,000
$20,000
7,500
0.3
0
$25.3
0
$132,19
3
$32,662
$48,918
$132,193
$32,662
$48,918
$23,040
$8,931
Revenue
Wages and
salaries
Food and
supplies
$7.40
11.90
1,000
Variabl
e
eleme
nt per
tenantday
$35.40
$2,900
−
Fixed
element
per
month
Data used in budgeting:
Nicolini 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 October, the kennel budgeted
for 2,200 tenant-days, but its actual level of activity was 2,250 tenant-days. The kennel
has provided the following data concerning the formulas used in its budgeting and its
actual results for October:
A. $1,040 U
B. $1,040 F
C. $1,160 F
D. $1,160 U
The spending variance for facility expenses in December would be closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
Actual results for December:
Administrative
expenses
Total
expenses
Wages and salaries
Food and supplies
Revenue
0.3
0
$25.3
0
4.00
7,500
13.40
600
$7.60
Variabl
e
eleme
nt per
tenantday
$33.90
9,000
$2,900
−
Fixed
element
per
month
Actual results for December:
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total
expenses
Data used in budgeting:
Juenemann 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 December, the kennel budgeted
for 3,800 tenant-days, but its actual level of activity was 3,770 tenant-days. The kennel
has provided the following data concerning the formulas used in its budgeting and its
actual results for December:
A. $0
B. $183 F
C. $275 U
D. $183 U
182.
179.
$8,931
$23,040
$20,000
$76,370
$18,600
$27,175
$15,555
$7,810
Variabl
e
Fixed
element eleme
per nt per
tenant-
Data used in budgeting:
Nicolini 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 October, the kennel budgeted
for 2,200 tenant-days, but its actual level of activity was 2,250 tenant-days. The kennel
has provided the following data concerning the formulas used in its budgeting and its
actual results for October:
A. $7,636
B. $7,810
C. $7,850
D. $7,840
The administrative expenses in the planning budget for October would be closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
0.20
2.70
$20,100 $22.20
7,400
8,800
Actual results for October:
Facility
expenses
Administrative
expenses
Total
expenses
0.3
0
$25.3
0
4.00
7,500
13.40
9,000
$7.60
600
$2,900
Variabl
e
Fixed
element eleme
per nt per
month tenantday
− $33.90
Actual results for December:
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total
expenses
Data used in budgeting:
Juenemann 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 December, the kennel budgeted
for 3,800 tenant-days, but its actual level of activity was 3,770 tenant-days. The kennel
has provided the following data concerning the formulas used in its budgeting and its
actual results for December:
A. $31,780
B. $31,552
C. $32,922
D. $32,662
The wages and salaries in the planning budget for December would be closest to:
Facility expenses
Administrative
expenses
185.
183.
11.90
2.70
0.20
1,000
8,800
7,400
Variabl
$5,248
$158,57
8
$87,314
$21,452
$18,048
The occupancy expenses in the flexible budget for October would be closest to:
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
Revenue
Actual results for October:
$26.80
0.20
1.70
6.80
$18.10
Fixed Variable
elemen element
t
per
per
clientmonth
visit
−
$51.20
Revenue
Personnel
$36,600
expenses
Medical
1,000
supplies
Occupancy
12,100
expenses
Administrativ
4,800
e expenses
Total
$54,50
0
expenses
Data used in budgeting:
Federick Clinic uses client-visits as its measure of activity. During October, the clinic
budgeted for 3,000 client-visits, but its actual level of activity was 3,040 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for October:
Data used in budgeting:
Nicolini 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 October, the kennel budgeted
for 2,200 tenant-days, but its actual level of activity was 2,250 tenant-days. The kennel
has provided the following data concerning the formulas used in its budgeting and its
actual results for October:
A. $27,775
B. $26,571
C. $27,793
D. $27,180
The food and supplies in the flexible budget for October would be closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
$76,370
$18,600
$27,175
$15,555
$7,810
$20,100 $22.20
$7.40
$2,900
day
− $35.40
month
Actual results for October:
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total
expenses
186.
184.
11.90
2.70
0.20
1,000
8,800
7,400
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
Revenue
Actual results for October:
Revenue
Personnel
$36,600
expenses
Medical
1,000
supplies
Occupancy
12,100
expenses
Administrativ
4,800
e expenses
$54,50
Total
expenses
0
$5,248
$158,57
8
$87,314
$21,452
$18,048
$26.80
0.20
1.70
6.80
$18.10
Fixed Variable
elemen element
t
per
per
clientmonth
visit
−
$51.20
Data used in budgeting:
Federick Clinic uses client-visits as its measure of activity. During October, the clinic
budgeted for 3,000 client-visits, but its actual level of activity was 3,040 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for October:
A. $17,268
B. $18,289
C. $17,811
D. $17,200
Data used in budgeting:
Federick Clinic uses client-visits as its measure of activity. During October, the clinic
budgeted for 3,000 client-visits, but its actual level of activity was 3,040 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for October:
A. $600 F
B. $5 F
C. $600 U
D. $5 U
The spending variance for food and supplies in October would be closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
$76,370
$18,600
$27,175
$15,555
$7,810
$20,100 $22.20
$7.40
$2,900
e
Fixed
element eleme
per nt per
month tenantday
− $35.40
Actual results for October:
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total
expenses
187.
$5,248
$158,57
8
$87,314
$21,452
$18,048
Direct labor
Revenue
Actual results for July:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Data used in budgeting:
$206,3
18
$29,81
4
$72,700
$18.60
0.10
1.90
42,800
29,900
$36.60
$5.30
11.30
Fixed
element
per
month
−
$0
0
Variable
element
per unit
Linscott Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During July, the
company budgeted for 5,400 units, but its actual level of activity was 5,380 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for July:
A. $848 U
B. $780 U
C. $848 F
D. $780 F
The spending variance for occupancy expenses in October would be closest to:
A. $91,624
B. $87,314
C. $86,165
D. $90,900
The personnel expenses in the planning budget for October would be closest to:
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
Revenue
Actual results for October:
$26.80
0.20
1.70
6.80
$18.10
Fixed Variable
elemen element
t
per
per
clientmonth
visit
−
$51.20
Revenue
Personnel
$36,600
expenses
Medical
1,000
supplies
Occupancy
12,100
expenses
Administrativ
4,800
e expenses
Total
$54,50
expenses
0
191.
188.
$58,22
4
$51,98
Manufacturing overhead
2
Selling and administrative $29,45
expenses
8
16.80
1.20
0.80
$25.10
21,200
$70,200
0.10
$18.60
29,900
$72,700
0
1.90
42,800
49,000
$36.60
$5.30
11.30
Variable
element
per unit
Fixed
element
per
month
−
$0
0
Data used in budgeting:
Stitt Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During November, the
company budgeted for 5,900 units, but its actual level of activity was 5,880 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for November:
A. $35,264
B. $37,044
C. $35,384
D. $37,170
The direct labor in the planning budget for November would be closest to:
Revenue
$251,5
52
$35,26
Direct labor
4
$95,13
Direct materials
4
$57,81
Manufacturing overhead
6
Selling and administrative $25,40
expenses
4
Actual results for November:
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Actual results for July:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Data used in budgeting:
Linscott Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During July, the
company budgeted for 5,400 units, but its actual level of activity was 5,380 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for July:
A. $30,438
B. $30,440
C. $29,458
D. $29,568
The selling and administrative expenses in the planning budget for July would be closest
to:
Direct materials
192.
189.
1.90
0.10
42,800
29,900
0.80
$25.10
$70,200
1.20
49,000
21,200
$40.90
$6.30
16.80
Fixed
element
per
month
−
$0
0
Variable
element
per unit
$36.60
$5.30
11.30
Variable
element
per unit
Fixed
element
per
month
−
$0
0
Stitt Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During November, the
company budgeted for 5,900 units, but its actual level of activity was 5,880 units. The
A. $57,620
B. $56,056
C. $58,013
D. $56,080
The manufacturing overhead in the flexible budget for November would be closest to:
$251,5
Revenue
52
$35,26
Direct labor
4
$95,13
Direct materials
4
$57,81
Manufacturing overhead
6
Selling and administrative $25,40
expenses
4
Actual results for November:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
Data used in budgeting:
Linscott Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During July, the
company budgeted for 5,400 units, but its actual level of activity was 5,380 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for July:
A. $52,175
B. $51,789
C. $53,022
D. $53,060
The manufacturing overhead in the flexible budget for July would be closest to:
$206,3
Revenue
18
$29,81
Direct labor
4
$58,22
Direct materials
4
$51,98
Manufacturing overhead
2
Selling and administrative $29,45
expenses
8
190.
$72,700
$18.60
Fixed
element
per
month
−
$0
$40.90
$6.30
Variable
element
per unit
$40.90
$6.30
16.80
1.20
0.80
$25.10
49,000
21,200
$70,200
Variable
element
per unit
Fixed
element
per
month
−
$0
0
A. $1,760 U
The spending variance for manufacturing overhead in November would be closest to:
Revenue
$251,5
52
$35,26
Direct labor
4
$95,13
Direct materials
4
$57,81
Manufacturing overhead
6
Selling and administrative $25,40
expenses
4
Actual results for November:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Data used in budgeting:
company has provided the following data concerning the formulas used in its budgeting
and its actual results for November:
Revenue
Direct labor
Data used in budgeting:
Stitt Corporation manufactures and sells a single product. The company uses units as the
measure of activity in its budgets and performance reports. During November, the
company budgeted for 5,900 units, but its actual level of activity was 5,880 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for November:
A. $2,570 U
B. $2,796 U
C. $2,796 F
D. $2,570 F
The spending variance for direct materials in July would be closest to:
Revenue
$206,3
18
$29,81
Direct labor
4
$58,22
Direct materials
4
$51,98
Manufacturing overhead
2
Selling and administrative $29,45
expenses
8
Actual results for July:
expenses
Total expenses
196.
193.
2.00
0.40
$18.9
0
10,200
7,600
$56,300
$8,848
$145,66
4
$80,786
$21,314
$17,960
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
$7.30
8.20
4.80
$2,800
900
9,000
Variabl
e
Fixed
element eleme
per nt per
month tenantday
− $32.60
Data used in budgeting:
Perla 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 March, the kennel budgeted for 2,200
tenant-days, but its actual level of activity was 2,160 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for March:
A. $284 U
B. $670 F
C. $670 U
D. $284 F
The overall revenue and spending variance (i.e., the variance for net operating income in
the revenue and spending variance column on the revenue and spending variances
report) for May would be closest to: Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
Revenue
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
Revenue
$145,66
4
$80,786
$21,314
$17,960
5.20
1,700
$36,800 $11.30
Variabl
e
Fixed
element eleme
per nt per
month clientvisit
− $38.20
Actual results for May:
Revenue
Personnel
expenses
Medical
supplies
Occupancy
expenses
Administrative
expenses
Total
expenses
Data used in budgeting:
Lantagne Clinic uses client-visits as its measure of activity. During May, the clinic
budgeted for 3,800 client-visits, but its actual level of activity was 3,820 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for May:
B. $1,736 F
C. $1,736 U
D. $1,760 F
197.
194.
$8,848
$18,900
0.40
$69,996
$18,408
$19,092
$18,498
$6,652
0.2
0
$20.5
0
$18.9
0
Revenue
Variabl
e
Fixed
element eleme
per nt per
month tenantday
− $32.60
Data used in budgeting:
Perla 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 March, the kennel budgeted for 2,200
tenant-days, but its actual level of activity was 2,160 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for March:
A. $18,860
B. $18,749
C. $18,568
D. $18,408
The wages and salaries in the planning budget for March would be closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
Actual results for March:
Administrative
expenses
Total
expenses
6,200
$56,300
7,600
5.20
2.00
1,700
10,200
$36,800 $11.30
Variabl
e
Fixed
element eleme
per nt per
month clientvisit
− $38.20
Actual results for May:
Revenue
Personnel
expenses
Medical
supplies
Occupancy
expenses
Administrative
expenses
Total
expenses
Data used in budgeting:
Lantagne Clinic uses client-visits as its measure of activity. During May, the clinic
budgeted for 3,800 client-visits, but its actual level of activity was 3,820 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for May:
A. $16,844
B. $17,040
C. $17,426
D. $16,668
The net operating income in the planning budget for May would be closest to:
expenses
A. $16,668
B. $17,426
C. $16,844
D. $17,040
198.
$18,900
6,200
9,000
900
$2,800
$69,996
$18,408
$19,092
$18,498
$6,652
0.2
0
$20.5
0
4.80
8.20
$7.30
Data used in budgeting:
Fixed
Variabl
e
eleme
Perla 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 March, the kennel budgeted for 2,200
tenant-days, but its actual level of activity was 2,160 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for March:
A. $18,612
B. $18,745
C. $19,446
D. $18,940
The food and supplies in the flexible budget for March would be closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
Actual results for March:
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total
expenses
0.40
$18.9
0
7,600
$56,300
5.20
2.00
1,700
10,200
$36,800 $11.30
Variabl
e
Fixed
element eleme
per nt per
month clientvisit
- $38.20
Actual results for May:
Revenue
Personnel
expenses
Medical
supplies
Occupancy
expenses
Administrative
expenses
Total
expenses
Data used in budgeting:
195.Lantagne Clinic uses client-visits as its measure of activity. During May, the clinic
budgeted for 3,800 client-visits, but its actual level of activity was 3,820 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for May:
$8,848
$145,66
4
$80,786
$21,314
$17,960
The net operating income in the flexible budget for May would be closest to:
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
Revenue
201.
199.
$18,900
6,200
4.80
$69,996
$18,408
$19,092
$18,498
$6,652
Variabl
e
eleme
nt per
clientvisit
$39.80
1.00
0.40
$21.9
0
8,200
5,300
$41,400
$114,
Revenue
494
Personnel
$60,
expenses
564
Medical
$26,
supplies
936
Occupancy
$10,
expenses
980
Administrative $6,1
expenses
92
8.20
1,400
$26,500 $12.30
−
Fixed
element
per
month
Actual results for July:
Revenue
Personnel
expenses
Medical
supplies
Occupancy
expenses
Administrative
expenses
Total
expenses
Data used in budgeting:
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:
C. $6,234
D. $6,192
Data used in budgeting:
Perla 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 March, the kennel budgeted for 2,200
tenant-days, but its actual level of activity was 2,160 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for March:
A. $420 F
B. $1,724 F
C. $420 U
D. $1,724 U
The revenue variance for March would be closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
0.2
0
$20.5
0
8.20
900
$7.30
9,000
$2,800
element
per nt per
month tenantday
− $32.60
Actual results for March:
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total
expenses
202.
200.
4.80
9,000
$18,900
$69,996
$18,408
$19,092
$18,498
$6,652
0.40
$21.9
0
5,300
$41,400
$114,494
$60,564
$26,936
1.00
8,200
Revenue
Personnel expenses
Medical supplies
8.20
1,400
$26,500 $12.30
Variabl
e
Fixed
element eleme
per nt per
month clientvisit
− $39.80
Actual results for July:
Revenue
Personnel
expenses
Medical
supplies
Occupancy
expenses
Administrative
expenses
Total
expenses
Data used in budgeting:
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:
A. $10,907
B. $11,054
C. $11,180
D. $11,200
The occupancy expenses in the flexible budget for July would be closest to:
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:
A. $152 F
B. $480 F
C. $480 U
D. $152 U
The spending variance for food and supplies in March would be closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
0.2
0
$20.5
0
8.20
900
6,200
$7.30
$2,800
Actual results for March:
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total
expenses
Variabl
e
Fixed
element eleme
per nt per
month tenantday
− $32.60
203.
$6,192
$114,494
$60,564
$26,936
$10,980
$6,192
$10,980
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total
expenses
0.30
3.50
8.10
$5.80
$19,200 $17.70
7,000
8,500
700
$3,000
Variabl
e
Fixed
element eleme
per nt per
month tenantday
− $26.30
Data used in budgeting:
Kari 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 3,200
tenant-days, but its actual level of activity was 3,230 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for May:
A. $936 F
B. $936 U
C. $1,100 U
D. $1,100 F
The spending variance for medical supplies in July would be closest to:
Occupancy expenses
Administrative
expenses
A. $6,492
B. $6,500
The administrative expenses in the planning budget for July would be closest to:
Revenue
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
0.40
5,300
$21.9
0
1.00
8,200
$41,400
8.20
1,400
$26,500 $12.30
Variabl
e
Fixed
element eleme
per nt per
clientmonth
visit
− $39.80
Actual results for July:
Revenue
Personnel
expenses
Medical
supplies
Occupancy
expenses
Administrative
expenses
Total
expenses
Data used in budgeting:
207.
204.
$84,909
$21,744
$26,323
$20,585
$7,879
8.10
3.50
8,500
$6,974
$120,37
5
$65,916
$16,872
$13,200
Fixed Variable
elemen element
Data used in budgeting:
Wesolick Clinic uses client-visits as its measure of activity. During August, the clinic
budgeted for 2,900 client-visits, but its actual level of activity was 2,870 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for August:
A. $6,974
B. $6,880
C. $6,874
D. $7,047
The administrative expenses in the planning budget for August would be closest to:
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
Revenue
Actual results for August:
$20.60
0.20
2.00
5.60
$12.80
$5.80
700
Variabl
e
eleme
nt per
tenantday
$26.30
$3,000
−
Fixed
element
per
month
Personnel
$30,900
expenses
Medical
1,400
supplies
Occupancy
7,500
expenses
6,30
Administrativ
0
e expenses
$46,10
Total
expenses
0
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Data used in budgeting:
Kari 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 3,200
tenant-days, but its actual level of activity was 3,230 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for May:
A. $7,879
B. $7,806
C. $7,960
D. $7,969
The administrative expenses in the planning budget for May would be closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
Actual results for May:
208.
205.
7,000
0.30
t
per
month
−
$3,000
$6,974
$120,37
5
$65,916
$16,872
$13,200
Data used in budgeting:
Wesolick Clinic uses client-visits as its measure of activity. During August, the clinic
budgeted for 2,900 client-visits, but its actual level of activity was 2,870 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for August:
A. $17,640
B. $17,048
C. $17,472
D. $16,697
The medical supplies in the flexible budget for August would be closest to:
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
Revenue
Actual results for August:
$20.60
0.20
2.00
5.60
$12.80
per
clientvisit
$40.50
$5.80
Variabl
e
Fixed
element eleme
per nt per
month tenantday
− $26.30
Revenue
Personnel
$30,900
expenses
Medical
1,400
supplies
Occupancy
7,500
expenses
6,30
Administrativ
0
e expenses
Total
$46,10
0
expenses
Revenue
Wages and
salaries
Data used in budgeting:
Kari 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 3,200
tenant-days, but its actual level of activity was 3,230 tenant-days. The kennel has
provided the following data concerning the formulas used in its budgeting and its actual
results for May:
A. $20,394
B. $20,778
C. $19,700
D. $19,805
The facility expenses in the flexible budget for May would be closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
$84,909
$21,744
$26,323
$20,585
$7,879
$19,200 $17.70
Actual results for May:
Administrative
expenses
Total
expenses
209.
206.
3.50
0.30
8.10
7,000
700
8,500
$6,974
$120,37
5
$65,916
$16,872
$13,200
Coderre Corporation manufactures and sells a single product. The company uses units
A. $768 U
B. $768 F
C. $600 F
D. $600 U
The spending variance for medical supplies in August would be closest to:
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
Revenue
Actual results for August:
$20.60
0.20
2.00
5.60
$12.80
Fixed Variable
elemen element
t
per
per
clientmonth
visit
−
$40.50
Fixed Variable
elemen element
t
per
per
clientmonth
visit
−
$40.50
Revenue
Personnel
$30,900
expenses
Medical
1,400
supplies
Occupancy
7,500
expenses
6,30
Administrativ
0
e expenses
$46,10
Total
0
expenses
Revenue
Data used in budgeting:
Wesolick Clinic uses client-visits as its measure of activity. During August, the clinic
budgeted for 2,900 client-visits, but its actual level of activity was 2,870 client-visits. The
clinic has provided the following data concerning the formulas used in its budgeting and
its actual results for August:
A. $297 F
B. $540 U
C. $297 U
D. $540 F
The spending variance for food and supplies in May would be closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
$84,909
$21,744
$26,323
$20,585
$7,879
$19,200 $17.70
Actual results for May:
Food and
supplies
Facility
expenses
Administrative
expenses
Total
expenses
212.
$29.70
$6.80
8.90
1.30
0.10
$17.10
49,300
26,300
$75,600
Variable
element
per unit
Fixed
element
per
month
−
$0
0
Actual results for July:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Data used in budgeting:
$29.70
$6.80
8.90
1.30
0.10
$17.10
Fixed
element
per
month
−
$0
0
49,300
26,300
$75,600
Variable
element
per unit
Coderre Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During July, the
company budgeted for 7,800 units, but its actual level of activity was 7,780 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for July:
A. $6,664 U
B. $6,664 F
C. $6,070 U
D. $6,070 F
The revenue variance for July would be closest to:
Manufacturing overhead
Direct materials
$69,31
2
$57,79
4
Selling and administrative $27,58
expenses
8
The direct labor in the planning budget for July would be closest to:
Revenue
$224,9
96
$52,27
Direct labor
4
$69,31
Direct materials
2
$57,79
Manufacturing overhead
4
Selling and administrative $27,58
expenses
8
Actual results for July:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Data used in budgeting:
as the measure of activity in its budgets and performance reports. During July, the
company budgeted for 7,800 units, but its actual level of activity was 7,780 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for July:
213.
210.
$75,600
$13,1
10
45,60
0
15,39
0
62,7
00
$136,
800
5,700
In October, the actual number of machine-hours was 6,000, the actual supplies cost was
$14,740, the actual power cost was $49,170, the actual salaries cost was $15,390, and
the actual equipment depreciation was $63,670.
Total
Equipment depreciation
Salaries
Budgeted number of
machine-hours
Supplies (@ $2.30 per
machine-hour)
Power (@ $8.00 per
machine-hour)
Zike Corporation's static planning budget for October appears below. The company
bases its budgets on machine-hours.
A. $108 F
B. $108 U
C. $70 U
D. $70 F
The spending variance for direct materials in July would be closest to:
$224,9
96
$52,27
Direct labor
4
$69,31
Direct materials
2
$57,79
Manufacturing overhead
4
Selling and administrative $27,58
expenses
8
Revenue
$17.10
0.10
1.30
49,300
26,300
$29.70
$6.80
8.90
Variable
element
per unit
Fixed
element
per
month
−
$0
0
$224,9
Revenue
96
$52,27
Direct labor
4
$69,31
Direct materials
2
$57,79
Manufacturing overhead
4
Selling and administrative $27,58
Actual results for July:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Data used in budgeting:
Coderre Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During July, the
company budgeted for 7,800 units, but its actual level of activity was 7,780 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for July:
A. $52,904
B. $52,408
C. $52,274
D. $53,040
215.
214.
211.
8
$224,9
96
$52,27
4
0.10
$17.10
$75,600
1.30
$29.70
$6.80
8.90
Variable
element
per unit
26,300
49,300
Fixed
element
per
month
−
$0
0
$13,1
10
45,60
0
15,39
0
62,
700
$136,
800
5,700
A. $3,570 U
B. $1,170 U
C. $3,570 F
D. $1,170 F
The spending variance for power cost in the performance report for the month should be:
In October, the actual number of machine-hours was 6,000, the actual supplies cost was
$14,740, the actual power cost was $49,170, the actual salaries cost was $15,390, and
the actual equipment depreciation was $63,670.
Total
Equipment depreciation
Salaries
Budgeted number of
machine-hours
Supplies (@ $2.30 per
machine-hour)
Power (@ $8.00 per
machine-hour)
Zike Corporation's static planning budget for October appears below. The company
bases its budgets on machine-hours.
A. $940 F
B. $1,630 U
C. $940 U
D. $1,630 F
The spending variance for supplies cost in the performance report for the month should
be:
Direct labor
Revenue
Actual results for July:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Data used in budgeting:
Coderre Corporation manufactures and sells a single product. The company uses units
as the measure of activity in its budgets and performance reports. During July, the
company budgeted for 7,800 units, but its actual level of activity was 7,780 units. The
company has provided the following data concerning the formulas used in its budgeting
and its actual results for July:
A. $69,242
B. $69,490
C. $69,420
D. $69,134
The direct materials in the flexible budget for July would be closest to:
expenses
Data used in budgeting:
Fixed
Variabl
e
Smithj 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 3,500 tenant-days, but its actual level of activity was 3,490 tenant-days. The kennel
has provided the following data concerning the formulas used in its budgeting and its
actual results for February:
A. $970 F
B. $970 U
C. $2,330 U
D. $2,330 F
The spending variance for equipment depreciation in the performance report for the
month should be:
Variabl
Fixed
e
elemen elemen
t per
t per
month tenantday
− $27.80
$96,382
$19,529
$33,899
$25,203
$8,956
A. $447 F
B. $400 F
C. $400 U
The spending variance for facility expenses in February would be closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
Actual results for February:
Revenue
Wages and
$2,000 $5.10
salaries
Food and
1,100
9.10
supplies
Facility
9,200
4.70
expenses
Administrative
7,600
0.40
expenses
Total expenses $19,900 $19.30
Data used in budgeting:
kennel for one day is counted as one tenant-day. During February, the kennel budgeted
for 3,500 tenant-days, but its actual level of activity was 3,490 tenant-days. The kennel
has provided the following data concerning the formulas used in its budgeting and its
actual results for February:
218.Smithj Kennel uses tenant-days as its measure of activity; an animal housed in the
216.
$13,1
10
45,60
0
15,39
0
62,7
00
$136,
800
5,700
In October, the actual number of machine-hours was 6,000, the actual supplies cost was
$14,740, the actual power cost was $49,170, the actual salaries cost was $15,390, and
the actual equipment depreciation was $63,670.
Total
Equipment depreciation
Salaries
Budgeted number of
machine-hours
Supplies (@ $2.30 per
machine-hour)
Power (@ $8.00 per
machine-hour)
Zike Corporation's static planning budget for October appears below. The company
bases its budgets on machine-hours.
4.70
0.40
9,200
7,600
$96,382
$19,529
$33,899
$25,203
$8,956
D. $447 U
Smithj 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 3,500 tenant-days, but its actual level of activity was 3,490 tenant-days. The kennel
has provided the following data concerning the formulas used in its budgeting and its
A. $640 F
B. $918 F
C. $640 U
D. $918 U
The revenue variance for February would be closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
220.
0.40
$19.30
7,600
$19,900
Administrative
expenses
Total expenses
Facility expenses
Privett Hospital bases its budgets on patient-visits. The hospital's static planning budget
for November appears below:
A. $1,055 U
B. $970 U
C. $970 F
D. $1,055 F
The overall revenue and spending variance (i.e., the variance for net operating income in
the revenue and spending variance column on the revenue and spending variances
report) for February would be closest to: $8,956
$25,203
Food and supplies
Administrative expenses
$19,529
$33,899
Wages and salaries
$96,382
Revenue
Actual results for February:
4.70
9,200
9.10
1,100
Facility expenses
$5.10
$27.80
Food and supplies
$2,000
Wages and salaries
Revenue
Variab
le
Fixed
element eleme
per nt per
month tenant
-day
Data used in budgeting:
219.Smithj 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 3,500 tenant-days, but its actual level of activity was 3,490 tenant-days. The kennel
has provided the following data concerning the formulas used in its budgeting and its
actual results for February:
217.
9.10
1,100
$19,900 $19.30
$5.10
$2,000
element eleme
per nt per
month tenantday
− $27.80
Actual results for February:
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total
expenses
221.
3,500
$12,83
0
$17,65
0
$19,22
0
$20,19
0
3,700
18,550
19,2
50
$67,9
00
17,150
$12,95
0
Privett Hospital bases its budgets on patient-visits. The hospital's static planning budget
for November appears below:
A. $120 F
B. $860 U
C. $860 F
D. $120 U
The spending variance for supplies costs in the performance report for the month is:
Occupancy costs
Salaries
Laundry
Supplies
Actual number of patientvisits
Actual results for the month were:
Total
Occupancy costs
Budgeted number of
patient-visits
Supplies (@ $3.70 per
patient-visit)
Laundry (@ $4.90 per
patient-visit)
Salaries
A. $1,040 U
B. $1,040 F
C. $949 F
D. $949 U
The spending variance for food and supplies in February would be closest to:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
$96,382
$19,529
$33,899
$25,203
$8,956
$19,900 $19.30
0.40
4.70
7,600
9.10
9,200
$5.10
1,100
$2,000
Variabl
e
Fixed
element eleme
per nt per
tenantmonth
day
− $27.80
Actual results for February:
Revenue
Wages and
salaries
Food and
supplies
Facility
expenses
Administrative
expenses
Total
expenses
Data used in budgeting:
actual results for February:
224.
222.
$12,83
0
$17,65
0
$19,22
0
$20,19
0
3,700
$12,9
50
17,15
0
18,55
0
19,2
50
$67,9
00
3,500
$35.90
$7.80
10.10
1.90
0.40
$20.20
38,600
21,000
$59,600
Variable
element
per unit
Fixed
element
per
month
−
$0
0
The spending variance for direct materials in April would be closest to:
$179,1
Revenue
64
$41,24
Direct labor
8
$49,08
Direct materials
6
$48,54
Manufacturing overhead
4
Selling and administrative $22,35
expenses
4
Actual results for April:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Data used in budgeting:
Gilson Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During April, the company
budgeted for 5,100 units, but its actual level of activity was 5,060 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual
results for April:
C. $3,926 F
D. $2,490 F
Privett Hospital bases its budgets on patient-visits. The hospital's static planning budget
for November appears below:
A. $480 F
B. $480 U
C. $500 F
D. $500 U
The spending variance for laundry costs in the performance report for the month is:
Occupancy costs
Salaries
Laundry
Supplies
Actual number of patientvisits
Actual results for the month were:
Total
Occupancy costs
Salaries
Budgeted number of
patient-visits
Supplies (@ $3.70 per
patient-visit)
Laundry (@ $4.90 per
patient-visit)
225.
223.
$12,83
0
$17,65
0
$19,22
0
$20,19
0
3,700
$12,9
50
17,15
0
18,55
0
19,2
50
$67,9
00
3,500
1.90
0.40
$20.20
38,600
21,000
$59,600
$179,1
64
$41,24
8
$49,08
6
$48,54
4
$35.90
$7.80
10.10
Variable
element
per unit
Fixed
element
per
month
−
$0
0
Manufacturing overhead
Direct materials
Direct labor
Revenue
Actual results for April:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Data used in budgeting:
Gilson Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During April, the company
budgeted for 5,100 units, but its actual level of activity was 5,060 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual
results for April:
A. $2,020 F
B. $2,020 U
C. $2,424 F
D. $2,424 U
Gilson Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During April, the company
budgeted for 5,100 units, but its actual level of activity was 5,060 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual
results for April:
A. $160 U
B. $940 U
C. $940 F
D. $160 F
The spending variance for occupancy costs in the performance report for the month is:
Occupancy costs
Salaries
Laundry
Supplies
Actual number of patientvisits
Actual results for the month were:
Total
Occupancy costs
Salaries
Budgeted number of
patient-visits
Supplies (@ $3.70 per
patient-visit)
Laundry (@ $4.90 per
patient-visit)
A. $330 U
B. $330 F
C. $254 F
D. $254 U
The spending variance for manufacturing overhead in April would be closest to:
Selling and administrative $22,35
expenses
4
A. $3,926 U
B. $2,490 U
The revenue variance for April would be closest to:
$20.20
0.40
1.90
$35.90
$7.80
10.10
Variable
element
per unit
Direct materials
Direct labor
Revenue
Actual results for April:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Data used in budgeting:
$20.20
0.40
1.90
$35.90
$7.80
10.10
Variable
element
per unit
$179,1
64
$41,24
8
$49,08
6
$59,600
21,000
38,600
Fixed
element
per
month
$0
0
226.Gilson Corporation manufactures and sells a single product. The company uses units as
the measure of activity in its budgets and performance reports. During April, the company
budgeted for 5,100 units, but its actual level of activity was 5,060 units. The company has
provided the following data concerning the formulas used in its budgeting and its actual
results for April:
$59,600
21,000
38,600
Fixed
element
per
month
−
$0
0
$179,1
64
$41,24
Direct labor
8
$49,08
Direct materials
6
$48,54
Manufacturing overhead
4
Selling and administrative $22,35
expenses
4
Revenue
Actual results for April:
Revenue
Direct labor
Direct materials
Manufacturing
overhead
Selling and
administrative
expenses
Total expenses
Data used in budgeting:
−
Variabl
e
eleme
nt per
clientvisit
$44.60
2.00
0.20
6,500
4,000
0.20
4,000
A. $150 F
B. $190 F
C. $150 U
D. $190 U
The spending variance for occupancy expenses in July would be closest to: $4,594
$100,90
2
$60,922
$18,648
$11,290
$34,600 $24.70
2.00
6,500
$34,600 $24.70
7.40
900
$23,200 $15.10
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
Revenue
Actual results for July:
Occupancy
expenses
Administrative
expenses
Total
expenses
Actual results for July:
Revenue
Personnel
expenses
Medical
supplies
Occupancy
expenses
Administrative
expenses
Total
expenses
Fixed
element
per
month
Data used in budgeting:
Hagel Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 2,300 client-visits, but its actual level of activity was 2,320 client-visits. The clinic has
provided the following data concerning the formulas used in its budgeting and its actual
results for July:
A. $2,538 F
B. $2,538 U
C. $1,910 F
D. $1,910 U
The overall revenue and spending variance (i.e., the variance for net operating income in
the revenue and spending variance column on the revenue and spending variances
report) for April would be closest to:
Revenue
Personnel
expenses
Medical
supplies
900
7.40
$23,200 $15.10
Variabl
e
Fixed
element eleme
per nt per
month clientvisit
- $44.60
Data used in budgeting:
230.Hagel Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 2,300 client-visits, but its actual level of activity was 2,320 client-visits. The clinic has
provided the following data concerning the formulas used in its budgeting and its actual
results for July:
227.
$48,54
4
Selling and administrative $22,35
expenses
4
Manufacturing overhead
231.
228.
$4,594
$100,90
2
$60,922
$18,648
$11,290
0.20
Total
Equipment depreciation
Salaries
Budgeted number of
machine-hours
Supplies (@ $9.20 per
machine-hour)
Power (@ $9.30 per
machine-hour)
$51,5
20
52,08
0
61,60
0
67,7
60
$232,
960
5,600
Diemert Corporation bases its budgets on machine-hours. The company's static planning
budget for June appears below:
A. $6,120 U
B. $5,722 F
C. $5,722 U
D. $6,120 F
The overall revenue and spending variance (i.e., the variance for net operating income in
the revenue and spending variance column on the revenue and spending variances
report) for July would be closest to: $4,594
$100,90
2
$60,922
$18,648
$11,290
$34,600 $24.70
2.00
4,000
2.00
6,500
7.40
900
6,500
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
Revenue
Variabl
e
eleme
nt per
clientvisit
$44.60
$23,200 $15.10
−
Fixed
element
per
month
Actual results for July:
Occupancy
expenses
Administrative
expenses
Total
expenses
Revenue
Personnel
expenses
Medical
supplies
Occupancy
expenses
Data used in budgeting:
Hagel Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 2,300 client-visits, but its actual level of activity was 2,320 client-visits. The clinic has
provided the following data concerning the formulas used in its budgeting and its actual
results for July:
A. $2,570 F
B. $1,678 U
C. $1,678 F
D. $2,570 U
The revenue variance for July would be closest to:
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
Revenue
0.20
A. $580 U
B. $580 F
C. $728 F
D. $728 U
The spending variance for medical supplies in July would be closest to:
$4,594
$100,90
2
$60,922
$18,648
$11,290
232.
900
$49,1
00
$58,6
30
$60,6
80
$67,1
40
5,900
Equipment depreciation
Salaries
Budgeted number of
machine-hours
Supplies (@ $9.20 per
machine-hour)
Power (@ $9.30 per
machine-hour)
$51,5
20
52,08
0
61,60
0
67,7
60
$232,
5,600
Diemert Corporation bases its budgets on machine-hours. The company's static planning
budget for June appears below:
A. $5,180 F
B. $2,420 U
C. $5,180 U
D. $2,420 F
The spending variance for supplies costs in the performance report for the month should
be:
Equipment depreciation
Salaries
Power
Supplies
Actual number of
machine-hours
7.40
$23,200 $15.10
Variabl
e
Fixed
element eleme
per nt per
month clientvisit
- $44.60
Actual results for the month were:
Revenue
Personnel
expenses
Medical
supplies
Data used in budgeting:
229.Hagel Clinic uses client-visits as its measure of activity. During July, the clinic budgeted
for 2,300 client-visits, but its actual level of activity was 2,320 client-visits. The clinic has
provided the following data concerning the formulas used in its budgeting and its actual
results for July:
4,000
$34,600 $24.70
Personnel expenses
Medical supplies
Occupancy expenses
Administrative
expenses
Revenue
Actual results for July:
Administrative
expenses
Total
expenses
A. $215,950
B. $208,788
C. $215,140
D. $217,999
Equipment depreciation
Salaries
Budgeted number of
machine-hours
Supplies (@ $9.20 per
machine-hour)
Power (@ $9.30 per
machine-hour)
$51,5
20
52,08
0
61,60
0
67,7
60
5,600
Diemert Corporation bases its budgets on machine-hours. The company's static planning
budget for June appears below:
A. $6,550 U
B. $6,550 F
C. $3,760 F
D. $3,760 U
The materials quantity variance for November is: A. $3,290 F
B. $3,196 F
C. $3,290 U
D. $3,196 U
241.Degregorio Corporation makes a product that uses a material with the following direct
material standards:
kilos per
unit
$7.0
per kilo
0
3.8
The company produced 5,600 units in November using 21,750 kilos of the material.
During the month, the company purchased 24,800 kilos of the direct material at a total
cost of $168,640. The direct materials purchases variance is computed when the
materials are purchased.
Standard price
Standard
quantity
240.Degregorio Corporation makes a product that uses a material with the following direct
material standards:
A. $810 U
B. $6,352 U
C. $810 F
D. $6,352 F
The spending variance for plane operating costs in May would be closest to: 239.Bobe Air uses two measures of activity, flights and passengers, in the cost formulas in its
budgets and performance reports. The cost formula for plane operating costs is $44,580
per month plus $2,390 per flight plus $8 per passenger. The company expected its
activity in May to be 68 flights and 211 passengers, but the actual activity was 71 flights
and 210 passengers. The actual cost for plane operating costs in May was $215,140.
233.
$49,1
00
$58,6
30
$60,6
80
$67,1
40
5,900
960
The spending variance for power costs in the performance report for the month should
be:
Equipment depreciation
Salaries
Power
Supplies
Actual number of
machine-hours
Actual results for the month were:
Total
A. $4,250 U
B. $620 F
C. $4,250 F
D. $620 U
$2.0
per kilo
0
$6.0
per unit
0
$2.0
per kilo
0
$6.0
per unit
0
kilos per
unit
Standard
quantity
3.0
kilos per
unit
243.Canevari Corporation makes a product that uses a material with the following standards:
A. $315 F
B. $300 U
C. $300 F
D. $315 U
The materials quantity variance for April is: The company budgeted for production of 1,300 units in April, but actual production was
1,200 units. The company used 3,750 kilos of direct material to produce this output. The
company purchased 4,100 kilos of the direct material at a total cost of $8,610. The direct
materials purchases variance is computed when the materials are purchased.
Standard cost
Standard price
Standard
quantity
3.0
245.
244.
A. $1,450 U
B. $1,450 F
During May, the materials quantity variance for part XBEZ52 was:
Blaster Inc., manufactures portable radios. Each radio requires 3 units of Part XBEZ52,
which has a standard cost of $1.45 per unit. During May, the company purchased 12,000
units of the part for a total of $18,000. Also during May, the company manufactured 3,000
radios, using 10,000 units of part XBEZ52. The direct materials purchases variance is
computed when the materials are purchased.
A. $450 U
B. $450 F
C. $600 F
D. $600 U
During May, the materials price variance for part XBEZ52 was:
Blaster Inc., manufactures portable radios. Each radio requires 3 units of Part XBEZ52,
which has a standard cost of $1.45 per unit. During May, the company purchased 12,000
units of the part for a total of $18,000. Also during May, the company manufactured 3,000
radios, using 10,000 units of part XBEZ52. The direct materials purchases variance is
computed when the materials are purchased.
A. $360 F
B. $410 U
C. $410 F
D. $360 U
A. $4,256 F
B. $4,256 U
C. $4,960 F
D. $4,960 U
242.Canevari Corporation makes a product that uses a material with the following standards:
The materials price variance for April is: The materials price variance for November is: Standard cost
Standard price
The company budgeted for production of 1,300 units in April, but actual production was
1,200 units. The company used 3,750 kilos of direct material to produce this output. The
company purchased 4,100 kilos of the direct material at a total cost of $8,610. The direct
materials purchases variance is computed when the materials are purchased.
kilos per
3.8
unit
$7.0
per kilo
0
The plane operating costs in the flexible budget for May would be closest to: 238.Bobe Air uses two measures of activity, flights and passengers, in the cost formulas in its
budgets and performance reports. The cost formula for plane operating costs is $44,580
per month plus $2,390 per flight plus $8 per passenger. The company expected its
activity in May to be 68 flights and 211 passengers, but the actual activity was 71 flights
and 210 passengers. The actual cost for plane operating costs in May was $215,140.
A. $208,788
B. $215,950
C. $206,050
D. $215,140
The plane operating costs in the planning budget for May would be closest to: 237.Bobe Air uses two measures of activity, flights and passengers, in the cost formulas in its
budgets and performance reports. The cost formula for plane operating costs is $44,580
per month plus $2,390 per flight plus $8 per passenger. The company expected its
activity in May to be 68 flights and 211 passengers, but the actual activity was 71 flights
and 210 passengers. The actual cost for plane operating costs in May was $215,140.
A. $2,090 F
B. $3,340 U
C. $3,340 F
D. $2,090 U
The spending variance for wages and salaries in May would be closest to: 236.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.
A. $185,030
B. $186,280
C. $188,370
D. $187,240
The wages and salaries in the flexible budget for May would be closest to: 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 company produced 5,600 units in November using 21,750 kilos of the material.
During the month, the company purchased 24,800 kilos of the direct material at a total
cost of $168,640. The direct materials purchases variance is computed when the
materials are purchased.
Standard price
Standard
quantity
235.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
A. $185,030
B. $188,370
C. $187,404
D. $186,280
The wages and salaries in the planning budget for May would be closest to: 234.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.
$49,1
00
$58,6
30
$60,6
80
$67,1
40
5,900
$232,
960
The spending variance for equipment depreciation in the performance report for the
month should be:
Equipment depreciation
Salaries
Power
Supplies
Actual number of
machine-hours
Actual results for the month were:
Total
A. $4,060 U
B. $3,640 F
C. $3,640 U
D. $4,060 F
What is the materials price variance for the month? The direct materials purchases variance is computed when the materials are purchased.
Actual materials
gra
5,800
purchased
ms
Actual cost of
$108, materials purchased
460
Actual materials used
gra
5,200
in production
ms
unit
Actual output
2,700
s
D. $11,020 U
254.
Stan
Stan
dard Stan
dard
Price dard
Quan
or Cost
tity
Rate
Jackson Industries uses a standard cost system in which direct materials inventory is
carried at standard cost. Jackson has established the following standards for one unit of
product.
A. $1,500 Favorable
B. $15,640 Unfavorable
C. $17,250 Favorable
D. $23,800 Favorable
What is Stench's materials quantity variance for June? 253.Stench Foods Corporation uses a standard cost system to collect costs related to the
production of its garlic flavored yogurt. The garlic (materials) standards for each container
of yogurt produced are 0.8 ounces of crushed garlic at a standard cost of $2.30 per
ounce.
During the month of June, Stench purchased 75,000 ounces of crushed garlic at a total
cost of $171,000. Stench used 64,000 of these ounces to produce 71,500 containers of
yogurt.
The direct materials purchases variance is computed when the materials are purchased.
A. $1,500 Favorable
B. $15,640 Unfavorable
C. $17,250 Favorable
D. $23,800 Favorable
What is Stench's materials price variance for June? 252.Stench Foods Corporation uses a standard cost system to collect costs related to the
production of its garlic flavored yogurt. The garlic (materials) standards for each container
of yogurt produced are 0.8 ounces of crushed garlic at a standard cost of $2.30 per
ounce.
During the month of June, Stench purchased 75,000 ounces of crushed garlic at a total
cost of $171,000. Stench used 64,000 of these ounces to produce 71,500 containers of
yogurt.
The direct materials purchases variance is computed when the materials are purchased.
gram
1.9
s
$18 per
.00 gram
The following data pertain to operations concerning the product for the last month:
Standard price
Standard quantity per
unit of output
247.The following materials standards have been established for a particular product:
gram
s
$18 per
.00 gram
1.9
The following data pertain to operations concerning the product for the last month:
Standard price
Standard quantity per
unit of output
246.The following materials standards have been established for a particular product:
C. $4,350 F
D. $4,350 U
A. $1,260 U
B. $1,309 U
C. $11,220 U
D. $10,800 U
What is the materials quantity variance for the month? The direct materials purchases variance is computed when the materials are purchased.
255.
Stan
Stan
dard Stan
dard
Price dard
Quan
or Cost
tity
Rate
$3.60
5
per $18.0
poun
poun
0
ds
d
$12.0
1.25
$15.0
0 per
hours
0
hour
During May, Jackson purchased 125,000 pounds of direct material at a total cost of
$475,000. The total factory wages for May were $364,000, 90 percent of which were for
Direc
t
mate
rials
Direc
t
labor
Jackson Industries uses a standard cost system in which direct materials inventory is
carried at standard cost. Jackson has established the following standards for one unit of
product.
A. $21,600 Favorable
B. $25,000 Unfavorable
C. $28,000 Favorable
D. $21,600 Unfavorable
The price variance for the direct material acquired by Jackson Industries during May is:
During May, Jackson purchased 125,000 pounds of direct material at a total cost of
$475,000. The total factory wages for May were $364,000, 90 percent of which were for
direct labor. Jackson manufactured 22,000 units of product during May using 108,000
pounds of direct material and 28,000 direct labor-hours.
Direc
$3.60
5
t
per $18.0
poun
mate
poun
0
ds
rials
d
Direc
$12.0
1.25
$15.0
t
0 per
hours
0
labor
hour
A. $2,755 U
B. $2,890 F
C. $2,890 U
D. $2,755 F
The materials price variance for January is: 249.Imrie Corporation makes a product that uses a material with the quantity standard of 9.5
grams per unit of output and the price standard of $5.00 per gram. In January the
company produced 2,900 units using 26,940 grams of the direct material. During the
month the company purchased 28,900 grams of the direct material at $4.90 per gram.
The direct materials purchases variance is computed when the materials are purchased.
A. $2,989 F
B. $3,050 F
C. $2,989 U
D. $3,050 U
The materials quantity variance for January is: 248.Imrie Corporation makes a product that uses a material with the quantity standard of 9.5
grams per unit of output and the price standard of $5.00 per gram. In January the
company produced 2,900 units using 26,940 grams of the direct material. During the
month the company purchased 28,900 grams of the direct material at $4.90 per gram.
The direct materials purchases variance is computed when the materials are purchased.
Actual materials
gra
5,800
purchased
ms
Actual cost of
$108, materials purchased
460
Actual materials used
gra
5,200
in production
ms
unit
Actual output
2,700
s
pounds per
unit
$50.4
per unit
0
The materials quantity variance for September is: The direct materials purchases variance is computed when the materials are purchased.
A. $3,770 F
B. $3,900 U
C. $3,770 U
D. $3,900 F
256.
pounds per
unit
$50.4
per unit
0
$6.00 per pound
8.4
Stan
Stan
dard Stan
dard
Price dard
Quan
or Cost
tity
Rate
$3.60
5
per $18.0
poun
poun
0
ds
d
$12.0
1.25
$15.0
0 per
hours
0
hour
A. $8,400 Favorable
B. $7,200 Unfavorable
C. $8,400 Unfavorable
D. $6,000 Favorable
The labor rate variance for May is:
During May, Jackson purchased 125,000 pounds of direct material at a total cost of
$475,000. The total factory wages for May were $364,000, 90 percent of which were for
direct labor. Jackson manufactured 22,000 units of product during May using 108,000
pounds of direct material and 28,000 direct labor-hours.
Direc
t
mate
rials
Direc
t
labor
Jackson Industries uses a standard cost system in which direct materials inventory is
carried at standard cost. Jackson has established the following standards for one unit of
product.
A. $7,200 Unfavorable
B. $7,600 Favorable
C. $5,850 Unfavorable
D. $7,200 Favorable
The materials quantity variance for May is:
direct labor. Jackson manufactured 22,000 units of product during May using 108,000
pounds of direct material and 28,000 direct labor-hours.
A. $11,020 F
B. $9,912 U
C. $9,912 F
The materials price variance for September is: The direct materials purchases variance is computed when the materials are purchased.
The company budgeted for production of 5,800 units in September, but actual production
was 5,900 units. The company used 50,210 pounds of direct material to produce this
output. The company purchased 55,100 pounds of the direct material at $5.80 per pound.
Standard cost
Standard
quantity
Standard
price
251.Melrose Corporation makes a product that uses a material with the following standards:
8.4
$6.00 per pound
The company budgeted for production of 5,800 units in September, but actual production
was 5,900 units. The company used 50,210 pounds of direct material to produce this
output. The company purchased 55,100 pounds of the direct material at $5.80 per pound.
Standard cost
Standard
quantity
Standard
price
250.Melrose Corporation makes a product that uses a material with the following standards:
Stan
Stan
dard Stan
dard
Price dard
Quan
or Cost
tity
Rate
$3.60
5
per $18.0
poun
poun
0
ds
d
$12.0
1.25
$15.0
0 per
hours
0
hour
A. $5,850 Favorable
B. $7,200 Favorable
C. $6,000 Unfavorable
D. $5,850 Unfavorable
The labor efficiency variance for May is:
During May, Jackson purchased 125,000 pounds of direct material at a total cost of
$475,000. The total factory wages for May were $364,000, 90 percent of which were for
direct labor. Jackson manufactured 22,000 units of product during May using 108,000
pounds of direct material and 28,000 direct labor-hours.
Direc
t
mate
rials
Direc
t
labor
Jackson Industries uses a standard cost system in which direct materials inventory is
carried at standard cost. Jackson has established the following standards for one unit of
product.
263.
Stan
dard
Quan
tity
or
Hour
s
Berends Corporation makes a product with the following standard costs:
A. $8,430 U
B. $8,430 F
C. $7,868 U
D. $7,868 F
The materials quantity variance for April is:
Stan
dard
Price
or
Rate
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
Actual output
8,80 unit
0s
Raw materials used in 78,1 pou
production
50 nds
Purchases of raw
85,9 pou
materials
00 nds
Actual direct labor2,56 hou
hours
0 rs
Actual cost of raw
$240 materials purchases
,520
Actual direct labor
$39, cost
424
Actual variable
$6,9 overhead cost
12
The company reported the following results concerning this product in April.
• Direct materials purchased: 26,800 gallons at $8.20 per gallon
• Direct materials used: 25,200 gallons
• Direct labor used: 5,600 hours at $15.30 per hour
During July, the company made 6,000 units of product and incurred the following costs:
• Direct materials: 4 gallons at $8 per gallon
• Direct labor: 1 hour at $16 per hour
258.The Collins Corporation uses standard costing and has established the following direct
material and direct labor standards for each unit of the single product it makes:
257.
264.
$3.00
9.2
per
poun
poun
ds
d
$17.0
0.3
0 per
hours
hour
$3.00
0.3
per
hours
hour
8,80 unit
0s
78,1 pou
50 nds
85,9 pou
00 nds
2,56 hou
0 rs
$240 ,520
$39, 424
$6,9 12
A. $17,180 U
B. $16,192 F
C. $16,192 U
D. $17,180 F
The materials price variance for April is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
Raw materials used in
production
Purchases of raw
materials
Actual direct laborhours
Actual cost of raw
materials purchases
Actual direct labor
cost
Actual variable
overhead cost
Actual output
The company reported the following results concerning this product in April.
Variable overhead
Direct labor
Direct materials
A. $3,920 Unfavorable
B. $6,120 Unfavorable
The labor rate variance for July was: The direct materials purchases variance is computed when the materials are purchased.
• Direct materials purchased: 26,800 gallons at $8.20 per gallon
• Direct materials used: 25,200 gallons
• Direct labor used: 5,600 hours at $15.30 per hour
During July, the company made 6,000 units of product and incurred the following costs:
• Direct materials: 4 gallons at $8 per gallon
• Direct labor: 1 hour at $16 per hour
260.The Collins Corporation uses standard costing and has established the following direct
material and direct labor standards for each unit of the single product it makes:
A. $22,960 Unfavorable
B. $22,400 Unfavorable
C. $9,600 Unfavorable
D. $9,840 Unfavorable
The materials quantity variance for July was: The direct materials purchases variance is computed when the materials are purchased.
• Direct materials purchased: 26,800 gallons at $8.20 per gallon
• Direct materials used: 25,200 gallons
• Direct labor used: 5,600 hours at $15.30 per hour
During July, the company made 6,000 units of product and incurred the following costs:
• Direct materials: 4 gallons at $8 per gallon
• Direct labor: 1 hour at $16 per hour
259.The Collins Corporation uses standard costing and has established the following direct
material and direct labor standards for each unit of the single product it makes:
A. $5,360 Favorable
B. $5,360 Unfavorable
C. $5,040 Favorable
D. $5,040 Unfavorable
The materials price variance for July was: The direct materials purchases variance is computed when the materials are purchased.
262.
8,80 unit
0s
78,1 pou
50 nds
85,9 pou
00 nds
2,56 hou
0 rs
$240 ,520
$39, 424
$6,9 12
The labor efficiency variance for April is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
Raw materials used in
production
Purchases of raw
materials
Actual direct laborhours
Actual cost of raw
materials purchases
Actual direct labor
cost
Actual variable
overhead cost
Actual output
Stan
dard
Price
or
Rate
$3.00
9.2
per
poun
poun
ds
d
$17.0
0.3
0 per
hours
hour
$3.00
0.3
per
hours
hour
Stan
dard
Quan
tity
or
Hour
s
The company reported the following results concerning this product in April.
Variable overhead
Direct labor
Direct materials
Stan
dard
Price
or
Rate
$3.00
9.2
per
poun
poun
ds
d
$17.0
0.3
0 per
hours
hour
$3.00
0.3
per
hours
hour
Stan
dard
Quan
tity
or
Hour
s
Berends Corporation makes a product with the following standard costs:
Variable overhead
Direct labor
Direct materials
Berends Corporation makes a product with the following standard costs:
A. $6,400 Favorable
B. $89,600 Favorable
C. $10,320 Favorable
D. $6,120 Favorable
The labor efficiency variance for July was: The direct materials purchases variance is computed when the materials are purchased.
• Direct materials purchased: 26,800 gallons at $8.20 per gallon
• Direct materials used: 25,200 gallons
• Direct labor used: 5,600 hours at $15.30 per hour
During July, the company made 6,000 units of product and incurred the following costs:
• Direct materials: 4 gallons at $8 per gallon
• Direct labor: 1 hour at $16 per hour
261.The Collins Corporation uses standard costing and has established the following direct
material and direct labor standards for each unit of the single product it makes:
C. $1,120 Favorable
D. $3,920 Favorable
268.
265.
8,80 unit
0s
Raw materials used in 78,1 pou
production
50 nds
Purchases of raw
85,9 pou
materials
00 nds
Actual direct labor2,56 hou
hours
0 rs
Actual cost of raw
$240 materials purchases
,520
0 per
hour
$3.00
0.3
per
hours
hour
hours
Standard
Standard
Longview Hospital performs blood tests in its laboratory. The following standards have
been set for each blood test performed:
A. $792 F
B. $792 U
C. $768 F
D. $768 U
The variable overhead rate variance for April is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
8,80 unit
Actual output
0s
Raw materials used in 78,1 pou
production
50 nds
Purchases of raw
85,9 pou
materials
00 nds
Actual direct labor2,56 hou
hours
0 rs
Actual cost of raw
$240 materials purchases
,520
Actual direct labor
$39, cost
424
Actual variable
$6,9 overhead cost
12
The company reported the following results concerning this product in April.
Variable overhead
Direct labor
Actual output
Stan
dard
Price
or
Rate
$3.00
9.2
per
poun
poun
ds
d
$17.0
0.3
0 per
hours
hour
$3.00
0.3
per
hours
hour
Stan
dard
Quan
tity
or
Hour
s
The company reported the following results concerning this product in April.
Variable overhead
Direct labor
Direct materials
Berends Corporation makes a product with the following standard costs:
A. $1,232 F
B. $1,360 F
C. $1,360 U
D. $1,232 U
269.
266.
$39, 424
$6,9 12
0.2 hours $7.00 per hour
Quantity or
Price or Rate
Hours
$2.75 per
2.0 plates
plate
$15.00 per
0.2 hours
hour
Direct
materials
Direct
labor
Variable
overhead
0.2 hours $7.00 per hour
Standard
Standard
Quantity or
Price or Rate
Hours
$2.75 per
2.0 plates
plate
$15.00 per
0.2 hours
hour
Longview Hospital performs blood tests in its laboratory. The following standards have
been set for each blood test performed:
A. $360 F
B. $360 U
C. $740 F
D. $740 U
The materials price variance for May is:
The direct materials purchases variance is computed when the materials are purchased.
• 3,600 plates were purchased for $9,540
• 3,200 plates were used for blood tests
• 340 actual direct labor-hours were worked at a cost of $5,550
During May, the laboratory performed 1,500 blood tests. On May 1 there were no direct
materials (plates) on hand; after a plate is used for a blood test it is discarded. Variable
overhead is assigned to blood tests on the basis of standard direct labor-hours. The
following events occurred during May:
Direct
materials
Direct
labor
Variable
overhead
8,80 unit
Stan
dard
Price
or
Rate
$3.00
9.2
per
poun
poun
ds
d
$17.0
0.3
0 per
hours
hour
$3.00
0.3
per
hours
hour
The company reported the following results concerning this product in April.
Variable overhead
Direct labor
Direct materials
Stan
dard
Quan
tity
or
Hour
s
Berends Corporation makes a product with the following standard costs:
A. $4,224 F
B. $4,224 U
C. $4,096 U
D. $4,096 F
The labor rate variance for April is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
Actual direct labor
cost
Actual variable
overhead cost
270.
267.
0s
78,1 pou
50 nds
85,9 pou
00 nds
2,56 hou
0 rs
$240 ,520
$39, 424
$6,9 12
Stan
dard
Price
or
Rate
$3.00
9.2
per
poun
poun
ds
d
$17.0
0.3
Stan
dard
Quan
tity
or
Hour
s
0.2 hours $7.00 per hour
Standard
Standard
Quantity or
Price or Rate
Hours
$2.75 per
2.0 plates
plate
$15.00 per
0.2 hours
hour
The direct materials purchases variance is computed when the materials are purchased.
• 3,600 plates were purchased for $9,540
• 3,200 plates were used for blood tests
• 340 actual direct labor-hours were worked at a cost of $5,550
During May, the laboratory performed 1,500 blood tests. On May 1 there were no direct
materials (plates) on hand; after a plate is used for a blood test it is discarded. Variable
overhead is assigned to blood tests on the basis of standard direct labor-hours. The
following events occurred during May:
Direct
materials
Direct
labor
Variable
overhead
Longview Hospital performs blood tests in its laboratory. The following standards have
been set for each blood test performed:
A. $1,650 F
B. $1,650 U
C. $550 U
D. $720 F
The materials quantity variance for May is:
The direct materials purchases variance is computed when the materials are purchased.
• 3,600 plates were purchased for $9,540
• 3,200 plates were used for blood tests
• 340 actual direct labor-hours were worked at a cost of $5,550
During May, the laboratory performed 1,500 blood tests. On May 1 there were no direct
materials (plates) on hand; after a plate is used for a blood test it is discarded. Variable
overhead is assigned to blood tests on the basis of standard direct labor-hours. The
following events occurred during May:
Direct materials
Berends Corporation makes a product with the following standard costs:
A. $240 F
B. $216 U
C. $216 F
D. $240 U
The variable overhead efficiency variance for April is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
Raw materials used in
production
Purchases of raw
materials
Actual direct laborhours
Actual cost of raw
materials purchases
Actual direct labor
cost
Actual variable
overhead cost
Actual output
275.
271.
The labor rate variance for May is:
0.2 hours $7.00 per hour
0.7 hours $1.00 per hour
$17.00 per
hour
7.9 liters $8.00 per liter
0.7 hours
Standard
Standard
Quantity or
Price or Rate
Hours
Ortman Corporation makes a product with the following standard costs:
A. $1,264 F
B. $1,400 F
C. $1,264 U
D. $1,400 U
The materials price variance for May is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
1,6
Actual output
units
00
Raw materials used in 12,
liters
production
490
Actual direct labor1,0 hour
hours
90 s
Purchases of raw
14,
liters
materials
000
Actual price of raw
$8. per
materials purchased
10 liter
$16 per
Actual direct labor rate
.10 hour
Actual variable
$0. per
overhead rate
90 hour
The company reported the following results concerning this product in May.
materials
Direct
labor
Variable
overhead
A. $600 F
B. $600 U
C. $515 U
D. $515 F
The labor efficiency variance for May is:
The direct materials purchases variance is computed when the materials are purchased.
• 3,600 plates were purchased for $9,540
• 3,200 plates were used for blood tests
• 340 actual direct labor-hours were worked at a cost of $5,550
During May, the laboratory performed 1,500 blood tests. On May 1 there were no direct
materials (plates) on hand; after a plate is used for a blood test it is discarded. Variable
overhead is assigned to blood tests on the basis of standard direct labor-hours. The
following events occurred during May:
Direct
materials
Direct
labor
Variable
overhead
Standard
Standard
Quantity or
Price or Rate
Hours
$2.75 per
2.0 plates
plate
$15.00 per
0.2 hours
hour
Longview Hospital performs blood tests in its laboratory. The following standards have
been set for each blood test performed:
A. $225 F
B. $225 U
C. $450 F
D. $450 U
276.
273.
272.
0.2 hours $7.00 per hour
Standard
Standard
Quantity or
Price or Rate
Hours
$2.75 per
2.0 plates
plate
$15.00 per
0.2 hours
hour
$17.00 per
hour
0.7 hours $1.00 per hour
0.7 hours
7.9 liters $8.00 per liter
7.9 liters $8.00 per liter
$8. per
10 liter
$16 per
.10 hour
$0. per
90 hour
Standard
Standard
Ortman Corporation makes a product with the following standard costs:
A. $483 U
B. $510 U
C. $483 F
D. $510 F
The labor efficiency variance for May is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
Actual variable
overhead rate
Actual direct labor rate
Actual price of raw
materials purchased
1,6
units
00
Raw materials used in 12,
liters
production
490
Actual direct labor1,0 hour
hours
90 s
Purchases of raw
14,
liters
materials
000
Actual output
The company reported the following results concerning this product in May.
Direct
materials
Direct
labor
Variable
overhead
Direct
materials
Standard
Standard
Quantity or
Price or Rate
Hours
Ortman Corporation makes a product with the following standard costs:
A. $350 F
B. $350 U
C. $280 U
D. $280 F
The variable overhead efficiency variance for May is:
The direct materials purchases variance is computed when the materials are purchased.
• 3,600 plates were purchased for $9,540
• 3,200 plates were used for blood tests
• 340 actual direct labor-hours were worked at a cost of $5,550
During May, the laboratory performed 1,500 blood tests. On May 1 there were no direct
materials (plates) on hand; after a plate is used for a blood test it is discarded. Variable
overhead is assigned to blood tests on the basis of standard direct labor-hours. The
following events occurred during May:
Direct
materials
Direct
labor
Variable
overhead
Longview Hospital performs blood tests in its laboratory. The following standards have
been set for each blood test performed:
277.
274.
0.7 hours
$17.00 per
hour
0.7 hours $1.00 per hour
$17.00 per
hour
0.7 hours $1.00 per hour
0.7 hours
7.9 liters $8.00 per liter
Quantity or
Price or Rate
Hours
Standard
Standard
Quantity or
Price or Rate
Hours
Ortman Corporation makes a product with the following standard costs:
A. $1,008 F
B. $981 U
C. $981 F
D. $1,008 U
The labor rate variance for May is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
1,6
Actual output
units
00
Raw materials used in 12,
liters
production
490
Actual direct labor1,0 hour
hours
90 s
Purchases of raw
14,
liters
materials
000
Actual price of raw
$8. per
materials purchased
10 liter
$16 per
Actual direct labor rate
.10 hour
Actual variable
$0. per
overhead rate
90 hour
The company reported the following results concerning this product in May.
Direct
materials
Direct
labor
Variable
overhead
Direct
Ortman Corporation makes a product with the following standard costs:
A. $1,200 U
B. $1,200 F
C. $1,215 F
D. $1,215 U
The materials quantity variance for May is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
1,6
Actual output
units
00
Raw materials used in 12,
liters
production
490
Actual direct labor1,0 hour
hours
90 s
Purchases of raw
14,
liters
materials
000
Actual price of raw
$8. per
materials purchased
10 liter
$16 per
Actual direct labor rate
.10 hour
Actual variable
$0. per
overhead rate
90 hour
The company reported the following results concerning this product in May.
Direct
labor
Variable
overhead
$
6
1
5
5,00 yar
0 ds
$17, 850
$10, 080
$28, 500
A. $950 U
B. $5,000 F
C. $1,000 U
D. $6,000 F
The materials quantity variance for the period is: The company records all variances at the earliest possible point in time. Variable
manufacturing overhead costs are applied to products on the basis of standard direct
labor-hours.
Direct materials
purchased (6,000
yards)
Direct materials used in
production
Direct labor cost
incurred (2,100 hours)
Variable manufacturing
overhead cost incurred
During a recent period the company produced 1,200 units of product. Various costs
associated with the production of these units are given below:
Variable manufacturing
overhead (1.5 hrs × $4 per
hour)
Direct labor (1.5 hours × $10
per hour)
Ortman Corporation makes a product with the following standard costs:
A. $27 F
B. $27 U
C. $30 U
D. $30 F
The variable overhead efficiency variance for May is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
1,6
Actual output
units
00
Raw materials used in 12,
liters
production
490
Actual direct labor1,0 hour
hours
90 s
Purchases of raw
14,
liters
materials
000
Actual price of raw
$8. per
materials purchased
10 liter
$16 per
Actual direct labor rate
.10 hour
Actual variable
$0. per
overhead rate
90 hour
$
6
$
2
0
$
1
5
During a recent period the company produced 1,200 units of product. Various costs
Variable manufacturing
overhead (1.5 hrs × $4 per
hour)
Direct labor (1.5 hours × $10
per hour)
Direct materials (4 yards × $5
per yard)
281.Beakins Corporation produces a single product. The standard cost card for the product
follows:
278.
$17.00 per
hour
0.7 hours $1.00 per hour
0.7 hours
7.9 liters $8.00 per liter
Standard
Standard
Quantity or
Price or Rate
Hours
The company reported the following results concerning this product in May.
Direct
materials
Direct
labor
Variable
overhead
A. $112 F
B. $112 U
C. $109 F
D. $109 U
The variable overhead rate variance for May is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
5,00 yar
0 ds
$17, 850
$10, 080
$28, 500
A. $3,150 U
B. $2,700 F
C. $2,700 U
D. $3,150 F
The labor rate variance for the period is: The company records all variances at the earliest possible point in time. Variable
manufacturing overhead costs are applied to products on the basis of standard direct
labor-hours.
Direct materials
purchased (6,000
yards)
Direct materials used in
production
Direct labor cost
incurred (2,100 hours)
Variable manufacturing
overhead cost incurred
associated with the production of these units are given below:
$
6
$
2
0
$
1
5
Direct materials
$28, purchased (6,000
500
yards)
Direct materials used in 5,00 yar
production
0 ds
During a recent period the company produced 1,200 units of product. Various costs
associated with the production of these units are given below:
Variable manufacturing
overhead (1.5 hrs × $4 per
hour)
Direct labor (1.5 hours × $10
per hour)
Direct materials (4 yards × $5
per yard)
282.Beakins Corporation produces a single product. The standard cost card for the product
follows:
The labor efficiency variance for the period is: A. $3,000 U
B. $2,550 U
C. $2,550 F
D. $3,000 F
$
6
$
2
0
$
1
5
5,00 yar
0 ds
$17, 850
$10, 080
$28, 500
The company records all variances at the earliest possible point in time. Variable
manufacturing overhead costs are applied to products on the basis of standard direct
labor-hours.
Direct materials
purchased (6,000
yards)
Direct materials used in
production
Direct labor cost
incurred (2,100 hours)
Variable manufacturing
overhead cost incurred
During a recent period the company produced 1,200 units of product. Various costs
associated with the production of these units are given below:
Variable manufacturing
overhead (1.5 hrs × $4 per
hour)
Direct labor (1.5 hours × $10
per hour)
Direct materials (4 yards × $5
per yard)
283.Beakins Corporation produces a single product. The standard cost card for the product
follows:
$17, 850
$10, 080
$
2
0
$
The company records all variances at the earliest possible point in time. Variable
manufacturing overhead costs are applied to products on the basis of standard direct
labor-hours.
Direct labor cost
incurred (2,100 hours)
Variable manufacturing
overhead cost incurred
Direct materials (4 yards × $5
per yard)
280.Beakins Corporation produces a single product. The standard cost card for the product
follows:
A. $1,250 F
B. $1,500 F
C. $1,250 U
D. $1,500 U
The materials price variance for the period is: The company records all variances at the earliest possible point in time. Variable
manufacturing overhead costs are applied to products on the basis of standard direct
labor-hours.
5,00 yar
0 ds
$17, 850
$10, 080
$28, 500
Direct materials
purchased (6,000
yards)
Direct materials used in
production
Direct labor cost
incurred (2,100 hours)
Variable manufacturing
overhead cost incurred
$
6
$
2
0
$
1
5
1,6
Actual output
units
00
Raw materials used in 12,
liters
production
490
Actual direct labor1,0 hour
hours
90 s
Purchases of raw
14,
liters
materials
000
Actual price of raw
$8. per
materials purchased
10 liter
$16 per
Actual direct labor rate
.10 hour
Actual variable
$0. per
overhead rate
90 hour
Variable manufacturing
overhead (1.5 hrs × $4 per
hour)
Direct labor (1.5 hours × $10
per hour)
Direct materials (4 yards × $5
per yard)
follows:
During a recent period the company produced 1,200 units of product. Various costs
associated with the production of these units are given below:
279.Beakins Corporation produces a single product. The standard cost card for the product
$17.00 per
hour
0.7 hours $1.00 per hour
0.7 hours
7.9 liters $8.00 per liter
Standard
Standard
Quantity or
Price or Rate
Hours
The company reported the following results concerning this product in May.
Direct
materials
Direct
labor
Variable
overhead
A. $1,680 F
B. $1,440 U
C. $1,440 F
D. $1,680 U
289.
288.
$
6
$
2
0
$
1
5
5,00 yar
0 ds
$17, 850
$10, 080
$28, 500
$19.00 per
hour
0.6 hours $3.00 per hour
0.6 hours
1.3 liters $6.00 per liter
Standard
Standard
Quantity or
Price or Rate
Hours
Standard
Standard
Quantity or
Price or Rate
Hours
Biery Corporation makes a product with the following standard costs:
A. $1,968 F
B. $2,088 F
C. $2,088 U
D. $1,968 U
The labor rate variance for April is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
The company produced 4,100 units in April using 5,380 liters of direct material and 2,610
direct labor-hours. During the month, the company purchased 6,000 liters of the direct
material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual
variable overhead rate was $2.90 per hour.
Direct
materials
Direct
labor
Variable
overhead
Biery Corporation makes a product with the following standard costs:
A. $2,850 F
B. $2,850 U
C. $2,970 F
D. $2,970 U
A. $1,200 U
B. $1,440 U
C. $1,200 F
D. $1,440 F
The variable overhead efficiency variance for the period is: The company records all variances at the earliest possible point in time. Variable
manufacturing overhead costs are applied to products on the basis of standard direct
labor-hours.
Direct materials
purchased (6,000
yards)
Direct materials used in
production
Direct labor cost
incurred (2,100 hours)
Variable manufacturing
overhead cost incurred
During a recent period the company produced 1,200 units of product. Various costs
associated with the production of these units are given below:
Variable manufacturing
overhead (1.5 hrs × $4 per
hour)
Direct labor (1.5 hours × $10
per hour)
Direct materials (4 yards × $5
per yard)
284.Beakins Corporation produces a single product. The standard cost card for the product
follows:
The variable overhead rate variance for the period is: 290.
286.
285.
$19.00 per
hour
0.6 hours $3.00 per hour
0.6 hours
1.3 liters $6.00 per liter
Standard
Standard
Quantity or
Price or Rate
Hours
$19.00 per
hour
$19.00 per
hour
0.6 hours $3.00 per hour
0.6 hours
1.3 liters $6.00 per liter
0.6 hours
1.3 liters $6.00 per liter
$19.00 per
hour
0.6 hours $3.00 per hour
0.6 hours
1.3 liters $6.00 per liter
Standard
Standard
Quantity or
Price or Rate
Hours
The company applies variable overhead on the basis of direct labor-hours. The direct
The company produced 4,100 units in April using 5,380 liters of direct material and 2,610
direct labor-hours. During the month, the company purchased 6,000 liters of the direct
material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual
variable overhead rate was $2.90 per hour.
Direct
materials
Direct
labor
Variable
overhead
Biery Corporation makes a product with the following standard costs:
A. $435 F
B. $435 U
C. $450 U
D. $450 F
The variable overhead efficiency variance for April is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
The company produced 4,100 units in April using 5,380 liters of direct material and 2,610
direct labor-hours. During the month, the company purchased 6,000 liters of the direct
material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual
variable overhead rate was $2.90 per hour.
Direct
materials
Direct
labor
Variable
overhead
Direct
materials
Direct
labor
Standard
Standard
Quantity or
Price or Rate
Hours
Biery Corporation makes a product with the following standard costs:
A. $290 F
B. $290 U
C. $300 F
D. $300 U
The materials quantity variance for April is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
The company produced 4,100 units in April using 5,380 liters of direct material and 2,610
direct labor-hours. During the month, the company purchased 6,000 liters of the direct
material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual
variable overhead rate was $2.90 per hour.
Direct
materials
Direct
labor
Variable
overhead
Biery Corporation makes a product with the following standard costs:
291.
287.
0.6 hours $3.00 per hour
$19.00 per
hour
0.6 hours $3.00 per hour
0.6 hours
1.3 liters $6.00 per liter
Standard
Standard
Quantity or
Price or Rate
Hours
Stan
dard
Quan
tity
or
Hour
s
Stan
dard
Price
or
Rate
Stan
dard
Cost
Per
Unit
The materials quantity variance for June is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
The company budgeted for production of 2,400 units in June, but actual production was
2,500 units. The company used 19,850 pounds of direct material and 980 direct laborhours to produce this output. The company purchased 21,700 pounds of the direct
material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the
actual variable overhead rate was $1.80 per hour.
Direc
$7.00
8.2
t
per $57.4
poun
mate
poun
0
ds
rials
d
Direc
$20.0
0.4
t
0 per $8.00
hours
labor
hour
Varia
$2.00
ble
0.4
per $0.80
over hours
hour
head
Galla Corporation makes a product with the following standard costs:
A. $261 U
B. $246 F
C. $261 F
D. $246 U
The variable overhead rate variance for April is:
materials purchases variance is computed when the materials are purchased.
The labor efficiency variance for April is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
The company produced 4,100 units in April using 5,380 liters of direct material and 2,610
direct labor-hours. During the month, the company purchased 6,000 liters of the direct
material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual
variable overhead rate was $2.90 per hour.
Direct
materials
Direct
labor
Variable
overhead
Biery Corporation makes a product with the following standard costs:
A. $1,066 U
B. $1,200 U
C. $1,200 F
D. $1,066 F
The materials price variance for April is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
The company produced 4,100 units in April using 5,380 liters of direct material and 2,610
direct labor-hours. During the month, the company purchased 6,000 liters of the direct
material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual
variable overhead rate was $2.90 per hour.
Variable
overhead
The materials price variance for June is: A. $6,150 F
B. $6,150 U
C. $6,510 F
D. $6,510 U
Standard
Standard
Standard
Quantity or
Price or Rate Cost Per Unit
Hours
$7.00 per
8.2 pounds
$57.40
pound
$20.00 per
A. $196 U
B. $200 F
C. $200 U
D. $196 F
The variable overhead rate variance for June is: The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
2,500 units. The company used 19,850 pounds of direct material and 980 direct laborhours to produce this output. The company purchased 21,700 pounds of the direct
material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the
actual variable overhead rate was $1.80 per hour.
Direct
materials
Direct
Raw materials used in
production
Purchases of raw
materials
Actual direct labor-
Actual output
Originally budgeted
output
5,40 unit
0s
5,50 unit
0s
39,2 gra
00 ms
44,1 gra
00 ms
ho
The company reported the following results concerning this product in June.
Standar Standa
Standa
d
rd
rd Cost
Quantit Price
Per
y or
or
Unit
Hours
Rate
Direct
$6.00
7.6
materi
per $45.60
grams
als
gram
$16.00
Direct
0.1
per $1.60
labor
hours
hour
Variabl
$6.00
e
0.1
per $0.60
overhe
hours
hour
ad
297.Gilder Corporation makes a product with the following standard costs:
$0.80
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
293.Galla Corporation makes a product with the following standard costs:
0.4 hours $2.00 per hour
Standard
Standard
Standard
Quantity or
Price or Rate Cost Per Unit
Hours
$7.00 per
8.2 pounds
$57.40
pound
$20.00 per
0.4 hours
$8.00
hour
The company budgeted for production of 2,400 units in June, but actual production was
2,500 units. The company used 19,850 pounds of direct material and 980 direct laborhours to produce this output. The company purchased 21,700 pounds of the direct
material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the
actual variable overhead rate was $1.80 per hour.
Direct
materials
Direct
labor
Variable
overhead
292.Galla Corporation makes a product with the following standard costs:
A. $4,550 U
B. $4,355 F
C. $4,550 F
D. $4,355 U
The labor efficiency variance for June is: A. $384 F
B. $400 U
C. $400 F
D. $384 U
0.4 hours $2.00 per hour
$0.80
Standard
Standard
Standard
Quantity or
Price or Rate Cost Per Unit
Hours
$7.00 per
8.2 pounds
$57.40
pound
$20.00 per
0.4 hours
$8.00
hour
A. $15,340 F
B. $15,600 F
C. $15,600 U
D. $15,340 U
The materials quantity variance for June is: The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
hours
Actual cost of raw
materials purchases
510
urs
$260 ,190
$7,8 Actual direct labor cost
03
Actual variable
$2,7 overhead cost
54
A. $800 U
B. $784 U
The labor rate variance for June is: The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
The company budgeted for production of 2,400 units in June, but actual production was
2,500 units. The company used 19,850 pounds of direct material and 980 direct laborhours to produce this output. The company purchased 21,700 pounds of the direct
material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the
actual variable overhead rate was $1.80 per hour.
Direct
materials
Direct
labor
Variable
overhead
Raw materials used in
Actual output
Originally budgeted
output
5,40 unit
0s
5,50 unit
0s
39,2 gra
The company reported the following results concerning this product in June.
Standar Standa
Standa
d
rd
rd Cost
Quantit Price
Per
y or
or
Unit
Hours
Rate
Direct
$6.00
7.6
materi
per $45.60
grams
als
gram
$16.00
Direct
0.1
per $1.60
labor
hours
hour
Variabl
$6.00
e
0.1
per $0.60
overhe
hours
hour
ad
298.Gilder Corporation makes a product with the following standard costs:
$8.00
$0.80
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
294.Galla Corporation makes a product with the following standard costs:
hour
0.4 hours $2.00 per hour
0.4 hours
The company budgeted for production of 2,400 units in June, but actual production was
2,500 units. The company used 19,850 pounds of direct material and 980 direct laborhours to produce this output. The company purchased 21,700 pounds of the direct
material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the
actual variable overhead rate was $1.80 per hour.
labor
Variable
overhead
The variable overhead efficiency variance for June is: A. $36 U
B. $36 F
C. $40 U
D. $40 F
0.4 hours $2.00 per hour
$0.80
Standard
Standard
Standard
Quantity or
Price or Rate Cost Per Unit
Hours
$7.00 per
8.2 pounds
$57.40
pound
$20.00 per
0.4 hours
$8.00
hour
A. $4,410 F
B. $4,410 U
C. $4,180 U
D. $4,180 F
The materials price variance for June is: The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
00 ms
44,1 gra
00 ms
ho
510
urs
$260 ,190
$7,8 Actual direct labor cost
03
Actual variable
$2,7 overhead cost
54
production
Purchases of raw
materials
Actual direct laborhours
Actual cost of raw
materials purchases
The company budgeted for production of 2,400 units in June, but actual production was
Direct
materials
Direct
labor
Variable
overhead
Originally budgeted
5,40 unit
The company reported the following results concerning this product in June.
Standar Standa
Standa
d
rd
rd Cost
Quantit Price
Per
y or
or
Unit
Hours
Rate
Direct
$6.00
7.6
materi
per $45.60
grams
als
gram
$16.00
Direct
0.1
per $1.60
labor
hours
hour
Variabl
$6.00
e
0.1
per $0.60
overhe
hours
hour
ad
299.Gilder Corporation makes a product with the following standard costs:
$0.80
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
296.Galla Corporation makes a product with the following standard costs:
0.4 hours $2.00 per hour
Standard
Standard
Standard
Quantity or
Price or Rate Cost Per Unit
Hours
$7.00 per
$57.40
8.2 pounds
pound
$20.00 per
0.4 hours
$8.00
hour
The company budgeted for production of 2,400 units in June, but actual production was
2,500 units. The company used 19,850 pounds of direct material and 980 direct laborhours to produce this output. The company purchased 21,700 pounds of the direct
material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the
actual variable overhead rate was $1.80 per hour.
Direct
materials
Direct
labor
Variable
overhead
295.Galla Corporation makes a product with the following standard costs:
C. $800 F
D. $784 F
A. $640 F
B. $640 U
C. $612 F
D. $612 U
The labor efficiency variance for June is: The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
303.
0.1
hours
Variabl
e
overhe
ad
$6.00
per
hour
gram
$16.00
per
hour
$0.60
$1.60
5,40 unit
0s
5,50 unit
0s
Raw materials used in 39,2 gra
production
00 ms
Purchases of raw
44,1 gra
materials
00 ms
Actual direct laborho
510
hours
urs
Actual cost of raw
$260 materials purchases
,190
$7,8 Actual direct labor cost
03
Actual variable
$2,7 overhead cost
54
Standard
Epley Corporation makes a product with the following standard costs:
A. $330 U
B. $330 F
C. $306 U
D. $306 F
The variable overhead rate variance for June is: The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
Actual output
Originally budgeted
output
The company reported the following results concerning this product in June.
0.1
hours
grams
Direct
labor
als
Standar Standa
Standa
d
rd
rd Cost
Quantit Price
Per
y or
or
Unit
Hours
Rate
Direct
$6.00
7.6
materi
per $45.60
grams
als
gram
$16.00
Direct
0.1
per $1.60
labor
hours
hour
Variabl
$6.00
e
0.1
per $0.60
overhe
hours
hour
ad
300.Gilder Corporation makes a product with the following standard costs:
0s
5,50 unit
0s
Raw materials used in 39,2 gra
production
00 ms
Purchases of raw
44,1 gra
materials
00 ms
Actual direct laborho
510
hours
urs
Actual cost of raw
$260 materials purchases
,190
$7,8 Actual direct labor cost
03
Actual variable
$2,7 overhead cost
54
Actual output
output
304.
0.8 hours $8.00 per hour
Standard
Quantity or
Price or Rate
Hours
$3.00 per
3.5 pounds
pound
$19.00 per
0.8 hours
hour
0.8 hours $8.00 per hour
Standard
Standard
Quantity or
Price or Rate
Hours
$3.00 per
3.5 pounds
pound
$19.00 per
0.8 hours
hour
In July the company produced 3,300 units using 12,240 pounds of the direct material
and 2,760 direct labor-hours. During the month, the company purchased 13,000 pounds
of the direct material at a cost of $35,100. The actual direct labor cost was $51,612 and
Direct
materials
Direct
labor
Variable
overhead
Epley Corporation makes a product with the following standard costs:
A. $2,070 F
B. $2,070 U
C. $1,863 F
D. $1,863 U
The materials quantity variance for July is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
In July the company produced 3,300 units using 12,240 pounds of the direct material
and 2,760 direct labor-hours. During the month, the company purchased 13,000 pounds
of the direct material at a cost of $35,100. The actual direct labor cost was $51,612 and
the actual variable overhead cost was $20,148.
Direct
materials
Direct
labor
Variable
overhead
Standar Standa
Standa
d
rd
rd Cost
Quantit Price
Per
y or
or
Unit
Hours
Rate
Direct
$6.00
7.6
materi
per $45.60
grams
als
gram
$16.00
Direct
0.1
per $1.60
labor
hours
hour
301.Gilder Corporation makes a product with the following standard costs:
A. $385 F
B. $357 F
C. $357 U
D. $385 U
The labor rate variance for June is: The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
5,40 unit
0s
5,50 unit
Actual output
0s
Raw materials used in 39,2 gra
production
00 ms
Purchases of raw
44,1 gra
materials
00 ms
Actual direct laborho
510
hours
urs
Actual cost of raw
$260 materials purchases
,190
$7,8 Actual direct labor cost
03
Actual variable
$2,7 overhead cost
54
Originally budgeted
output
The company reported the following results concerning this product in June.
$6.00
per
hour
$0.60
A. $240 U
B. $216 U
C. $240 F
D. $216 F
The variable overhead efficiency variance for June is: The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
5,40 unit
0s
5,50 unit
Actual output
0s
Raw materials used in 39,2 gra
production
00 ms
Purchases of raw
44,1 gra
materials
00 ms
Actual direct laborho
510
hours
urs
Actual cost of raw
$260 materials purchases
,190
$7,8 Actual direct labor cost
03
Actual variable
$2,7 overhead cost
54
Originally budgeted
output
305.
0.8 hours $8.00 per hour
Standard
Standard
Quantity or
Price or Rate
Hours
$3.00 per
3.5 pounds
pound
$19.00 per
0.8 hours
hour
A. $2,280 U
B. $2,244 U
C. $2,280 F
D. $2,244 F
The labor efficiency variance for July is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
In July the company produced 3,300 units using 12,240 pounds of the direct material
and 2,760 direct labor-hours. During the month, the company purchased 13,000 pounds
of the direct material at a cost of $35,100. The actual direct labor cost was $51,612 and
the actual variable overhead cost was $20,148.
Direct
materials
Direct
labor
Variable
overhead
Epley Corporation makes a product with the following standard costs:
A. $3,465 U
B. $3,900 F
C. $3,465 F
D. $3,900 U
The materials price variance for July is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
the actual variable overhead cost was $20,148.
Standar Standa
Standa
d
rd
rd Cost
Quantit Price
Per
y or
or
Unit
Hours
Rate
Direct
$6.00
7.6
materi
per $45.60
302.Gilder Corporation makes a product with the following standard costs:
0.1
hours
The company reported the following results concerning this product in June.
Variabl
e
overhe
ad
0.8 hours $8.00 per hour
Standard
Standard
Quantity or
Price or Rate
Hours
$3.00 per
3.5 pounds
pound
$19.00 per
0.8 hours
hour
Direct
materials
Direct
labor
Variable
Standard
Standard
Quantity or
Price or Rate
Hours
$3.00 per
3.5 pounds
pound
$19.00 per
0.8 hours
hour
Epley Corporation makes a product with the following standard costs:
A. $828 F
B. $828 U
C. $792 U
D. $792 F
The labor rate variance for July is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
In July the company produced 3,300 units using 12,240 pounds of the direct material
and 2,760 direct labor-hours. During the month, the company purchased 13,000 pounds
of the direct material at a cost of $35,100. The actual direct labor cost was $51,612 and
the actual variable overhead cost was $20,148.
Direct
materials
Direct
labor
Variable
overhead
Epley Corporation makes a product with the following standard costs:
311.
0.6 $1.25 per
$0.75
hours
hour
Pardoe Inc., manufactures a single product in which variable manufacturing overhead is
assigned on the basis of standard direct labor-hours. The company uses a standard cost
system and has established the following standards for one unit of product:
A. $4,500 F
B. $10,500 F
C. $10,500 U
D. $4,500 U
The materials quantity variance for March is:
The direct materials purchases variance is computed when the materials are purchased.
• The company produced 3,000 units during the month.
• A total of 8,000 pounds of material were purchased at a cost of $23,000.
• There was no beginning inventory of materials on hand to start the month; at the end of
the month, 2,000 pounds of material remained in the warehouse.
• During March, 1,600 direct labor-hours were worked at a rate of $6.50 per hour.
• Variable manufacturing overhead costs during March totaled $1,800.
During March, the following activity was recorded by the company:
Variable
manufacturing
overhead
Direct labor
Direct materials
Stand
Standar Stan
ard
d Price dard
Quant
or Rate Cost
ity
1.5
$3.00 per
pound
$4.50
pound
s
0.6 $6.00 per
$3.60
hours
hour
assigned on the basis of standard direct labor-hours. The company uses a standard cost
system and has established the following standards for one unit of product:
310.Pardoe Inc., manufactures a single product in which variable manufacturing overhead is
307.
306.
312.
308.
0.8 hours $8.00 per hour
0.8 hours $8.00 per hour
0.6 $1.25 per
$0.75
hours
hour
Stand
Standar Stan
ard
d Price dard
Quant
or Rate Cost
ity
1.5
$3.00 per
pound
$4.50
pound
s
0.6 $6.00 per
$3.60
hours
hour
Direct materials
Stand
Standar Stan
ard
d Price dard
Quant
or Rate Cost
ity
1.5
$3.00 per
pound
$4.50
Pardoe Inc., manufactures a single product in which variable manufacturing overhead is
assigned on the basis of standard direct labor-hours. The company uses a standard cost
system and has established the following standards for one unit of product:
A. $480 U
B. $800 U
C. $480 F
D. $800 F
The labor rate variance for March is:
The direct materials purchases variance is computed when the materials are purchased.
• The company produced 3,000 units during the month.
• A total of 8,000 pounds of material were purchased at a cost of $23,000.
• There was no beginning inventory of materials on hand to start the month; at the end of
the month, 2,000 pounds of material remained in the warehouse.
• During March, 1,600 direct labor-hours were worked at a rate of $6.50 per hour.
• Variable manufacturing overhead costs during March totaled $1,800.
During March, the following activity was recorded by the company:
Variable
manufacturing
overhead
Direct labor
Direct materials
The variable overhead rate variance for July is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
In July the company produced 3,300 units using 12,240 pounds of the direct material
and 2,760 direct labor-hours. During the month, the company purchased 13,000 pounds
of the direct material at a cost of $35,100. The actual direct labor cost was $51,612 and
the actual variable overhead cost was $20,148.
Direct
materials
Direct
labor
Variable
overhead
Standard
Standard
Quantity or
Price or Rate
Hours
$3.00 per
3.5 pounds
pound
$19.00 per
0.8 hours
hour
Epley Corporation makes a product with the following standard costs:
A. $960 F
B. $960 U
C. $876 F
D. $876 U
The variable overhead efficiency variance for July is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
In July the company produced 3,300 units using 12,240 pounds of the direct material
and 2,760 direct labor-hours. During the month, the company purchased 13,000 pounds
of the direct material at a cost of $35,100. The actual direct labor cost was $51,612 and
the actual variable overhead cost was $20,148.
overhead
0.6 $1.25 per
$0.75
hours
hour
Stand
Standar Stan
ard
d Price dard
Quant
or Rate Cost
ity
1.5
$3.00 per
pound
$4.50
pound
s
0.6 $6.00 per
$3.60
hours
hour
0.6 $1.25 per
$0.75
hours
hour
pound
s
0.6 $6.00 per
$3.60
hours
hour
A. $5,040 U
B. $1,200 U
C. $1,200 F
D. $5,040 F
The labor efficiency variance for March is:
The direct materials purchases variance is computed when the materials are purchased.
• The company produced 3,000 units during the month.
• A total of 8,000 pounds of material were purchased at a cost of $23,000.
• There was no beginning inventory of materials on hand to start the month; at the end of
the month, 2,000 pounds of material remained in the warehouse.
• During March, 1,600 direct labor-hours were worked at a rate of $6.50 per hour.
• Variable manufacturing overhead costs during March totaled $1,800.
During March, the following activity was recorded by the company:
Variable
manufacturing
overhead
Direct labor
A. $1,000 F
B. $1,000 U
C. $750 F
D. $750 U
The materials price variance for March is:
The direct materials purchases variance is computed when the materials are purchased.
• The company produced 3,000 units during the month.
• A total of 8,000 pounds of material were purchased at a cost of $23,000.
• There was no beginning inventory of materials on hand to start the month; at the end of
the month, 2,000 pounds of material remained in the warehouse.
• During March, 1,600 direct labor-hours were worked at a rate of $6.50 per hour.
• Variable manufacturing overhead costs during March totaled $1,800.
During March, the following activity was recorded by the company:
Variable
manufacturing
overhead
Direct labor
Direct materials
Pardoe Inc., manufactures a single product in which variable manufacturing overhead is
assigned on the basis of standard direct labor-hours. The company uses a standard cost
system and has established the following standards for one unit of product:
0.6 $1.25 per
$0.75
hours
hour
Stand
Standar Stan
ard
d Price dard
Quant
or Rate Cost
ity
1.5
$3.00 per
pound
$4.50
pound
s
0.6 $6.00 per
$3.60
hours
hour
During March, the following activity was recorded by the company:
Variable
manufacturing
overhead
Direct labor
Direct materials
313.Pardoe Inc., manufactures a single product in which variable manufacturing overhead is
assigned on the basis of standard direct labor-hours. The company uses a standard cost
system and has established the following standards for one unit of product:
309.
A. $1,932 U
B. $1,932 F
C. $1,848 U
D. $1,848 F
318.
317.
314.
0.6 $1.25 per
$0.75
hours
hour
Stand
Standar Stan
ard
d Price dard
Quant
or Rate Cost
ity
1.5
$3.00 per
pound
$4.50
pound
s
0.6 $6.00 per
$3.60
hours
hour
Stan
dard
Price
or
Rate
Stan
dard
Cost
Per
Unit
A. $2,200 U
B. $2,002 F
C. $2,200 F
D. $2,002 U
The labor efficiency variance for January is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
In January the company's budgeted production was 7,400 units but the actual production
was 7,500 units. The company used 45,580 kilos of the direct material and 2,030 direct
labor-hours to produce this output. During the month, the company purchased 48,500
kilos of the direct material at a cost of $53,350. The actual direct labor cost was $18,473
and the actual variable overhead cost was $7,714.
Direc
$1.00
t
6.5
per $6.50
mate kilos
kilo
rials
Direc
$10.0
0.3
t
0 per $3.00
hours
labor
hour
Varia
$4.00
ble
0.3
per $1.20
over hours
hour
head
Stan
dard
Quan
tity
or
Hour
s
Eliezrie Corporation makes a product with the following standard costs:
C. $4,850 U
D. $4,850 F
The direct materials purchases variance is computed when the materials are purchased.
• The company produced 3,000 units during the month.
• A total of 8,000 pounds of material were purchased at a cost of $23,000.
• There was no beginning inventory of materials on hand to start the month; at the end of
the month, 2,000 pounds of material remained in the warehouse.
• During March, 1,600 direct labor-hours were worked at a rate of $6.50 per hour.
• Variable manufacturing overhead costs during March totaled $1,800.
During March, the following activity was recorded by the company:
Variable
manufacturing
overhead
Direct labor
Direct materials
Pardoe Inc., manufactures a single product in which variable manufacturing overhead is
assigned on the basis of standard direct labor-hours. The company uses a standard cost
system and has established the following standards for one unit of product:
A. $200 U
B. $600 U
C. $600 F
D. $200 F
The variable overhead rate variance for March is: The direct materials purchases variance is computed when the materials are purchased.
• The company produced 3,000 units during the month.
• A total of 8,000 pounds of material were purchased at a cost of $23,000.
• There was no beginning inventory of materials on hand to start the month; at the end of
the month, 2,000 pounds of material remained in the warehouse.
• During March, 1,600 direct labor-hours were worked at a rate of $6.50 per hour.
• Variable manufacturing overhead costs during March totaled $1,800.
319.
315.
Stan
dard
Price
or
Rate
Stan
dard
Cost
Per
Unit
Stan
dard
Quan
tity
or
Hour
s
Stan
dard
Price
or
Rate
Stan
dard
Cost
Per
Unit
Stan
Eliezrie Corporation makes a product with the following standard costs:
A. $2,025 U
B. $1,827 U
C. $1,827 F
D. $2,025 F
The labor rate variance for January is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
In January the company's budgeted production was 7,400 units but the actual production
was 7,500 units. The company used 45,580 kilos of the direct material and 2,030 direct
labor-hours to produce this output. During the month, the company purchased 48,500
kilos of the direct material at a cost of $53,350. The actual direct labor cost was $18,473
and the actual variable overhead cost was $7,714.
Direc
$1.00
t
6.5
per $6.50
mate kilos
kilo
rials
Direc
$10.0
0.3
t
0 per $3.00
hours
labor
hour
Varia
$4.00
ble
0.3
per $1.20
over hours
hour
head
Eliezrie Corporation makes a product with the following standard costs:
The materials quantity variance for January is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
In January the company's budgeted production was 7,400 units but the actual production
was 7,500 units. The company used 45,580 kilos of the direct material and 2,030 direct
labor-hours to produce this output. During the month, the company purchased 48,500
kilos of the direct material at a cost of $53,350. The actual direct labor cost was $18,473
and the actual variable overhead cost was $7,714.
Direc
$1.00
t
6.5
per $6.50
mate kilos
kilo
rials
$10.0
Direc
0.3
t
0 per $3.00
hours
labor
hour
Varia
$4.00
0.3
ble
per $1.20
over hours
hour
head
Stan
dard
Quan
tity
or
Hour
s
Eliezrie Corporation makes a product with the following standard costs:
A. $1,050 F
B. $1,050 U
C. $250 F
D. $250 U
The variable overhead efficiency variance for March is:
320.
316.
Stan
dard
Quan
tity
or
Hour
s
Stan
dard
Price
or
Rate
Stan
dard
Cost
Per
Unit
dard
Quan
tity
or
Hour
s
Stan
dard
Price
or
Rate
Stan
dard
Cost
Per
Unit
Stan
dard Stan Stan
Quan dard dard
tity Price Cost
or
or Per
Eliezrie Corporation makes a product with the following standard costs:
A. $836 F
B. $836 U
C. $880 F
D. $880 U
The variable overhead efficiency variance for January is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
In January the company's budgeted production was 7,400 units but the actual production
was 7,500 units. The company used 45,580 kilos of the direct material and 2,030 direct
labor-hours to produce this output. During the month, the company purchased 48,500
kilos of the direct material at a cost of $53,350. The actual direct labor cost was $18,473
and the actual variable overhead cost was $7,714.
Direc
$1.00
t
6.5
per $6.50
mate kilos
kilo
rials
Direc
$10.0
0.3
t
0 per $3.00
hours
labor
hour
Varia
$4.00
ble
0.3
per $1.20
over hours
hour
head
A. $4,875 F
B. $4,875 U
The materials price variance for January is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
In January the company's budgeted production was 7,400 units but the actual production
was 7,500 units. The company used 45,580 kilos of the direct material and 2,030 direct
labor-hours to produce this output. During the month, the company purchased 48,500
kilos of the direct material at a cost of $53,350. The actual direct labor cost was $18,473
and the actual variable overhead cost was $7,714.
Direc
$1.00
t
6.5
per $6.50
mate kilos
kilo
rials
Direc
$10.0
0.3
t
0 per $3.00
hours
labor
hour
Varia
$4.00
0.3
ble
per $1.20
over hours
hour
head
Eliezrie Corporation makes a product with the following standard costs:
A. $3,487 F
B. $3,170 U
C. $3,170 F
D. $3,487 U
323.
321.
$7.00
Stan
dard
Price
or
Rate
Stan
dard
Cost
Per
Unit
Stan
dard
Quan
tity
or
Hour
s
Stan
dard
Price
or
Rate
Stan
dard
Cost
Per
Unit
Actual output
Originally budgeted
output
4,40
units
0
4,20
units
0
The company reported the following results concerning this product in December.
Direc
$7.00
3.0
t
per $21.0
ounc
mate
ounc
0
es
rials
e
Direc
$20.0
0.7
$14.0
t
0 per
hours
0
labor
hour
Varia
$5.00
ble
0.7
per $3.50
over hours
hour
head
Oddo Corporation makes a product with the following standard costs:
A. $2,520 U
B. $2,520 F
C. $2,900 F
D. $2,900 U
The materials price variance for December is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
Direc
Stan
dard
Quan
tity
or
Hour
s
Oddo Corporation makes a product with the following standard costs:
A. $406 F
B. $450 F
C. $406 U
D. $450 U
The variable overhead rate variance for January is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
In January the company's budgeted production was 7,400 units but the actual production
was 7,500 units. The company used 45,580 kilos of the direct material and 2,030 direct
labor-hours to produce this output. During the month, the company purchased 48,500
kilos of the direct material at a cost of $53,350. The actual direct labor cost was $18,473
and the actual variable overhead cost was $7,714.
Hour Rate Unit
s
Direc
$1.00
t
6.5
per $6.50
mate kilos
kilo
rials
Direc
$10.0
0.3
t
0 per $3.00
hours
labor
hour
Varia
$4.00
ble
0.3
per $1.20
over hours
hour
head
324.
4,40
units
0
4,20
units
0
12,8 ounce
20 s
3,16
hours
0
14,5 ounce
00 s
$6.8 per
0 ounce
$18. per
30 hour
$5.1 per
0 hour
12,8 ounce
20 s
3,16
hours
0
14,5 ounce
00 s
$6.8 per
0 ounce
$18. per
30 hour
$5.1 per
0 hour
Stan
dard
Price
or
Rate
Stan
dard
Cost
Per
Unit
Direc
$7.00
3.0
t
per $21.0
ounc
mate
ounc
0
es
rials
e
Direc
$20.0
0.7
$14.0
t
0 per
hours
0
labor
hour
Stan
dard
Quan
tity
or
Hour
s
Oddo Corporation makes a product with the following standard costs:
A. $4,026 F
B. $4,026 U
C. $4,400 F
D. $4,400 U
The labor efficiency variance for December is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
Raw materials used
in production
Actual direct laborhours
Purchases of raw
materials
Actual price of raw
materials
Actual direct labor
rate
Actual variable
overhead rate
A. $1,540 U
B. $1,496 F
C. $1,540 F
D. $1,496 U
The materials quantity variance for December is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
Raw materials used
in production
Actual direct laborhours
Purchases of raw
materials
Actual price of raw
materials
Actual direct labor
rate
Actual variable
overhead rate
Actual output
Originally budgeted
output
The company reported the following results concerning this product in December.
3.0
t
per $21.0
ounc
ounc
0
mate
es
rials
e
$20.0
Direc
$14.0
0.7
0 per
t
0
hours
hour
labor
Varia
$5.00
ble
0.7
per $3.50
over hours
hour
head
325.
322.
Stan
dard
Price
or
Rate
Stan
dard
Cost
Per
Unit
4,40
units
0
4,20
units
0
12,8 ounce
20 s
3,16
hours
0
14,5 ounce
00 s
$6.8 per
0 ounce
$18. per
30 hour
$5.1 per
0 hour
12,8 ounce
20 s
3,16
hours
0
14,5 ounce
00 s
$6.8 per
0 ounce
$18. per
30 hour
$5.1 per
0 hour
4,40
units
0
4,20
units
0
Stan
Oddo Corporation makes a product with the following standard costs:
A. $5,372 F
B. $4,998 U
C. $5,372 U
D. $4,998 F
The labor rate variance for December is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
Raw materials used
in production
Actual direct laborhours
Purchases of raw
materials
Actual price of raw
materials
Actual direct labor
rate
Actual variable
overhead rate
Actual output
Originally budgeted
output
The company reported the following results concerning this product in December.
Varia
$5.00
ble
0.7
per $3.50
over hours
hour
head
Raw materials used
in production
Actual direct laborhours
Purchases of raw
materials
Actual price of raw
materials
Actual direct labor
rate
Actual variable
overhead rate
Actual output
Originally budgeted
output
The company reported the following results concerning this product in December.
Direc
$7.00
3.0
per $21.0
t
ounc
mate
ounc
0
es
rials
e
Direc
$20.0
0.7
$14.0
t
0 per
hours
0
labor
hour
Varia
$5.00
ble
0.7
per $3.50
over hours
hour
head
Stan
dard
Quan
tity
or
Hour
s
Oddo Corporation makes a product with the following standard costs:
Stan
dard
Price
or
Rate
Stan
dard
Cost
Per
Unit
12,8 ounce
20 s
3,16
hours
0
14,5 ounce
00 s
$6.8 per
0 ounce
$18. per
30 hour
$5.1 per
0 hour
Raw materials used
in production
Actual direct laborhours
Purchases of raw
materials
Actual price of raw
materials
Actual direct labor
rate
Actual variable
overhead rate
$22.
per hour
00
$2.2
per unit
0
A. $122 U
B. $130 F
C. $122 F
D. $130 U
The labor rate variance for October is: The company budgeted for production of 6,400 units in October, but actual production
was 6,500 units. The company used 610 direct labor-hours to produce this output. The
actual direct labor rate was $21.80 per hour.
Standard cost
Standard direct
labor rate
The variable overhead efficiency variance for December is:
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
Actual output
4,40
units
0
4,20
units
0
Originally budgeted
output
The company reported the following results concerning this product in December.
331.Taccone Corporation makes a product that has the following direct labor standards:
A. $8,855 Favorable
B. $10,328 Favorable
C. $13,047 Unfavorable
D. $14,520 Unfavorable
What is Holiday's labor efficiency variance for November? 330.Holiday Chemical Corporation uses a standard cost system to collect costs related to the
production of its "bowling ball" fruitcakes. The direct labor standard for each fruitcake is
1.25 hours at a standard cost of $11.00 per hour. During the month of November,
Holiday's fruitcake production used 9,820 direct labor-hours at a total direct labor cost of
$106,547. This resulted in production of 8,500 fruitcakes for November.
A. $8,855 Favorable
B. $1,473 Favorable
C. $13,047 Unfavorable
D. $14,520 Unfavorable
What is Holiday's labor rate variance for November? 329.Holiday Chemical Corporation uses a standard cost system to collect costs related to the
production of its "bowling ball" fruitcakes. The direct labor standard for each fruitcake is
1.25 hours at a standard cost of $11.00 per hour. During the month of November,
Holiday's fruitcake production used 9,820 direct labor-hours at a total direct labor cost of
$106,547. This resulted in production of 8,500 fruitcakes for November.
dard
Quan
tity
or
Hour
s
$7.00
Direc
3.0
per $21.0
t
ounc
ounc
0
mate
es
e
rials
Direc
$20.0
0.7
$14.0
t
0 per
hours
0
labor
hour
Varia
$5.00
0.7
ble
per $3.50
over hours
hour
head
Stan
dard
Price
or
Rate
Stan
dard
Cost
Per
Unit
hours
0.3
per unit
$20.
per hour
00
4,40
units
0
4,20
units
0
12,8 ounce
20 s
3,16
hours
0
14,5 ounce
00 s
A. $2,244 F
B. $2,244 U
C. $2,200 U
D. $2,200 F
The labor efficiency variance for February is: In February the company produced 4,100 units using 1,120 direct labor-hours. The
actual direct labor rate was $20.40 per hour.
Standard direct
labor-hours
Standard direct
labor rate
Raw materials used
in production
Actual direct laborhours
Purchases of raw
materials
Actual output
Originally budgeted
output
The company reported the following results concerning this product in December.
Direc
$7.00
3.0
t
per $21.0
ounc
mate
ounc
0
es
rials
e
Direc
$20.0
0.7
$14.0
t
0 per
hours
0
labor
hour
Varia
$5.00
0.7
ble
per $3.50
over hours
hour
head
Stan
dard
Quan
tity
or
Hour
s
Oddo Corporation makes a product with the following standard costs:
The labor rate variance for February is: A. $448 U
B. $448 F
C. $492 U
D. $492 F
0.3
hours per
unit
The labor efficiency variance for December is: In December the company's budgeted production was 4,600 units, but the actual
production was 4,400 units. The company used 1,330 direct labor-hours to produce this
output. The actual direct labor cost was $14,364.
Standard direct labor rate $11.00 per hour
Standard direct laborhours
333.Jurczyk Corporation makes a product that has the following direct labor standards:
hours
0.3
per unit
$20.
per hour
00
In February the company produced 4,100 units using 1,120 direct labor-hours. The
actual direct labor rate was $20.40 per hour.
Standard direct
labor-hours
Standard direct
labor rate
332.Taccone Corporation makes a product that has the following direct labor standards:
326.
A. $1,122 F
B. $1,122 U
C. $1,100 F
D. $1,100 U
The variable overhead rate variance for December is:
A. $316 F
B. $294 F
C. $316 U
D. $294 U
The labor efficiency variance for October is: A. $872 F
B. $872 U
C. $880 U
D. $880 F
0.1
hours
per unit
hours per
unit
A. $264 F
B. $266 U
C. $264 U
D. $266 F
The labor rate variance for December is: In December the company's budgeted production was 4,600 units, but the actual
production was 4,400 units. The company used 1,330 direct labor-hours to produce this
output. The actual direct labor cost was $14,364.
A. $1,575 U
B. $1,656 F
C. $1,575 F
D. $1,656 U
The labor rate variance for April is: 336.Midgley Corporation makes a product whose direct labor standards are 0.8 hours per unit
and $22.00 per hour. In April the company produced 6,900 units using 5,250 direct laborhours. The actual direct labor cost was $113,925.
A. $5,940 U
B. $5,940 F
C. $5,859 F
D. $5,859 U
The labor efficiency variance for April is: 335.Midgley Corporation makes a product whose direct labor standards are 0.8 hours per unit
and $22.00 per hour. In April the company produced 6,900 units using 5,250 direct laborhours. The actual direct labor cost was $113,925.
0.3
Standard direct labor rate $11.00 per hour
Standard direct laborhours
334.Jurczyk Corporation makes a product that has the following direct labor standards:
A. $110 U
B. $108 F
C. $110 F
D. $108 U
Standard direct
labor-hours
328.Tout Corporation makes a product that has the following direct labor standards:
hours
0.1
per unit
$22.
per hour
00
$2.2
per unit
0
The company budgeted for production of 6,400 units in October, but actual production
was 6,500 units. The company used 610 direct labor-hours to produce this output. The
actual direct labor rate was $21.80 per hour.
Standard cost
Standard direct
labor-hours
Standard direct
labor rate
327.Tout Corporation makes a product that has the following direct labor standards:
$6.8 per
0 ounce
$18. per
30 hour
$5.1 per
0 hour
The company applies variable overhead on the basis of direct labor-hours. The direct
materials purchases variance is computed when the materials are purchased.
Actual price of raw
materials
Actual direct labor
rate
Actual variable
overhead rate
hour
s
$144,48 0
1,200 units
9,600
A. $1,920 F
B. $240 U
C. $1,920 U
D. $240 F
What is the labor rate variance for the month? Actual hours
worked
Actual total labor
cost
Actual output
hour
s
$144,48 0
1,200 units
9,600
0.5 hours $8.00 per hour
Standard
Standard
Quantity or
Price or Rate
Hours
$11.00 per
0.5 hours
hour
A. $242 U
B. $250 F
C. $250 U
D. $242 F
The variable overhead rate variance for May is:
In May the company produced 2,500 units using 1,210 direct labor-hours. The actual
variable overhead cost was $9,922. The company applies variable overhead on the basis
of direct labor-hours.
Direct
labor
Variable
overhead
Ledezma Corporation makes a product with the following standards for direct labor and
variable overhead:
A. $328 F
B. $328 U
C. $320 F
D. $320 U
The variable overhead efficiency variance for May is:
A. $7,230 U
B. $9,030 U
C. $7,230 F
What is the labor efficiency variance for the month? Actual hours
worked
Actual total labor
cost
Actual output
A. $51 U
B. $50 U
The variable overhead efficiency variance for September is: 343.Novelli Corporation makes a product whose variable overhead standards are based on
direct labor-hours. The quantity standard is 0.6 hours per unit. The variable overhead
rate standard is $5.00 per hour. In September the company produced 1,600 units using
950 direct labor-hours. The actual variable overhead rate was $5.10 per hour.
342.
hour
7.5
s
$15 per
.25 hour
The following data pertain to operations concerning the product for the last month:
Standard labor rate
Standard labor-hours
per unit of output
338.The following labor standards have been established for a particular product:
hour
7.5
s
$15 per
.25 hour
The following data pertain to operations concerning the product for the last month:
Standard labor rate
Standard labor-hours
per unit of output
337.The following labor standards have been established for a particular product:
Stan
dard
Quan
tity
or
Hour
s
Stan
dard
Price
or
Rate
Stan
dard
Cost
Per
Unit
C. $51 F
D. $50 F
Stan
dard Stan Stan
Desue Corporation makes a product with the following standards for labor and variable
overhead:
A. $140 F
B. $128 F
C. $128 U
D. $140 U
The variable overhead efficiency variance for December is:
The company budgeted for production of 6,500 units in December, but actual production
was 6,300 units. The company used 610 direct labor-hours to produce this output. The
actual variable overhead rate was $6.40 per hour. The company applies variable
overhead on the basis of direct labor-hours.
Direc
$19.0
0.1
t
0 per $1.90
hours
labor
hour
Varia
$7.00
ble
0.1
per $0.70
over hours
hour
head
Desue Corporation makes a product with the following standards for labor and variable
overhead:
D. $9,150 U
346.A manufacturing company that has only one product has established the following
standards for its variable manufacturing overhead. Variable manufacturing overhead
A. $1,739 U
B. $595 F
C. $595 U
D. $1,739 F
What is the variable overhead rate variance for the month? Actual hours
1,70 machine
0 -hours
Actual total variable
$24, manufacturing overhead cost 905
Actual output
200 units
The following data pertain to operations for the last month:
8.1
machinehours
per
Standard variable $14
machineoverhead rate
.30
hour
Standard hours
per unit of output
345.A manufacturing company that has only one product has established the following
standards for its variable manufacturing overhead. Variable manufacturing overhead
standards are based on machine-hours.
A. $95 F
B. $96 U
C. $95 U
D. $96 F
The variable overhead rate variance for September is: 344.Novelli Corporation makes a product whose variable overhead standards are based on
direct labor-hours. The quantity standard is 0.6 hours per unit. The variable overhead
rate standard is $5.00 per hour. In September the company produced 1,600 units using
950 direct labor-hours. The actual variable overhead rate was $5.10 per hour.
340.
339.
0.5 hours $8.00 per hour
Standard
Standard
Quantity or
Price or Rate
Hours
$11.00 per
0.5 hours
hour
A. $1,172 F
B. $567 F
C. $1,172 U
D. $1,144 U
What is the variable overhead efficiency variance for the month? 1,70 machine
0 -hours
Actual total variable
$24, manufacturing overhead cost 905
Actual output
200 units
Actual hours
The following data pertain to operations for the last month:
8.1
machinehours
per
Standard variable $14
machineoverhead rate
.30
hour
Standard hours
per unit of output
standards are based on machine-hours.
In May the company produced 2,500 units using 1,210 direct labor-hours. The actual
variable overhead cost was $9,922. The company applies variable overhead on the basis
of direct labor-hours.
Direct
labor
Variable
overhead
Ledezma Corporation makes a product with the following standards for direct labor and
variable overhead:
A. $366 U
B. $366 F
C. $378 F
D. $378 U
The variable overhead rate variance for December is:
The company budgeted for production of 6,500 units in December, but actual production
was 6,300 units. The company used 610 direct labor-hours to produce this output. The
actual variable overhead rate was $6.40 per hour. The company applies variable
overhead on the basis of direct labor-hours.
1.6 hours
$11. per
55 hour
$58, 310
3,00 uni
0 ts
Actual total variable
manufacturing
overhead cost
Actual output
What is the variable overhead rate variance for the month? 4,90 ho
0 urs
Actual hours
The following data pertain to operations for the last month:
Standard hours per
unit of output
Standard variable
overhead rate
347.The following standards for variable manufacturing overhead have been established for a
company that makes only one product:
341.
Quan dard dard
tity Price Cost
or
or Per
Hour Rate Unit
s
$19.0
Direc
0.1
0 per $1.90
t
hours
hour
labor
Varia
$7.00
ble
0.1
per $0.70
over hours
hour
head
353.
349.
1.6 hours
$11. per
55 hour
$58, 310
3,00 uni
0 ts
Actual total variable
manufacturing
overhead cost
Actual output
machinehours
per
$8.6
machine0
hour
8.0
9,30
safes
0
9.4
machinehours
6,90
units
0
A. $1,376 F
B. $516 U
C. $860 F
D. $1,376 U
The variable overhead rate variance for lubricants is closest to:
Lubricants and supplies are both elements of variable manufacturing overhead.
Actual machine- 66,2 machinehours (total)
30 hours
Actual lubricants $78, cost (total)
100
Actual supplies
$66, cost (total)
536
Standard
lubricants rate
per
$1.2
machine0
hour
per
Standard
$1.0
machinesupplies rate
0
hour
7,00
Actual production
units
0
Budgeted
production
Standard
machine-hours
per unit
The following data have been provided by Mathews Corporation:
A. $420 U
B. $420 F
C. $396 F
D. $396 U
The variable overhead rate variance for February is: Standard
supplies cost
Budgeted
production
Standard
machine-hours
per safe
Wall Corporation, which produces commercial safes, has provided the following data:
A. $1,680 F
B. $1,190 U
C. $1,155 U
D. $1,190 F
What is the variable overhead efficiency variance for the month? 4,90 ho
0 urs
Actual hours
The following data pertain to operations for the last month:
Standard hours per
unit of output
Standard variable
overhead rate
348.The following standards for variable manufacturing overhead have been established for a
company that makes only one product:
A. $2,870 U
B. $2,870 F
C. $1,715 U
D. $1,715 F
8.0
machinehours
9,30
safes
0
9.4
machinehours
6,90
units
0
A. $430 U
B. $736 F
C. $306 U
D. $736 U
The variable overhead rate variance for supplies is closest to:
Lubricants and supplies are both elements of variable manufacturing overhead.
Standard
lubricants rate
per
$1.2
machine0
hour
per
Standard
$1.0
machinesupplies rate
0
hour
7,00
Actual production
units
0
Actual machine- 66,2 machinehours (total)
30 hours
Actual lubricants $78, cost (total)
100
Actual supplies
$66, cost (total)
536
Budgeted
production
Standard
machine-hours
per unit
The following data have been provided by Mathews Corporation:
The variable overhead efficiency variance for supplies is closest to:
Supplies cost is an element of variable manufacturing overhead.
Standard
supplies cost
per
$8.6
machine0
hour
Actual
9,50
safes
production
0
Actual machine- 76,3 machinehours
60 hours
Actual supplies $706 cost
,566
Budgeted
production
Standard
machine-hours
per safe
Wall Corporation, which produces commercial safes, has provided the following data:
Budgeted
production
Standard
7,80
motors
0
355.The following data have been provided by Petri Corporation:
354.
350.
A. $52,966 U
B. $49,870 F
C. $52,966 F
D. $49,870 U
The variable overhead rate variance for supplies is closest to:
Supplies cost is an element of variable manufacturing overhead.
Actual
9,50
safes
production
0
Actual machine- 76,3 machinehours
60 hours
Actual supplies $706 cost
,566
$1.50
$7.20
Standard
Cost Per
Unit
The variable overhead efficiency variance for February is: A. $624 F
B. $600 F
C. $624 U
D. $600 U
$1.50
$7.20
Standard
Cost Per
Unit
6.9
machinehours
54,5 machine10 hours
$132 ,685
$108 ,158
A. $1,725 F
B. $3,590 F
C. $3,590 U
D. $5,315 F
The variable overhead rate variance for indirect labor is closest to: Indirect labor and power are both elements of variable manufacturing overhead.
Actual machinehours (total)
Actual indirect
labor cost (total)
Actual power
cost (total)
per
Standard indirect $2.5
machinelabor rate
0
hour
per
Standard power $2.0
machinerate
0
hour
8,00
Actual production
motors
0
machine-hours
per motor
6.9
machinehours
7,80
motors
0
per
Standard indirect $2.5
machinelabor rate
0
hour
per
Standard power $2.0
machinerate
0
hour
8,00
Actual production
motors
0
Budgeted
production
Standard
machine-hours
per motor
356.The following data have been provided by Petri Corporation:
Standard Standard
Quantity or
Price or
Hours
Rate
$24.00 per
0.3 hours
hour
$5.00 per
0.3 hours
hour
In February the company's budgeted production was 6,900 units, but the actual
production was 7,000 units. The company used 1,980 direct labor-hours to produce this
output. The actual variable overhead cost was $10,296. The company applies variable
overhead on the basis of direct labor-hours.
Direct
labor
Variable
overhead
352.Zacher Corporation makes a product with the following standards for direct labor and
variable overhead:
Standard Standard
Quantity or
Price or
Hours
Rate
$24.00 per
0.3 hours
hour
$5.00 per
0.3 hours
hour
In February the company's budgeted production was 6,900 units, but the actual
production was 7,000 units. The company used 1,980 direct labor-hours to produce this
output. The actual variable overhead cost was $10,296. The company applies variable
overhead on the basis of direct labor-hours.
Direct
labor
Variable
overhead
351.Zacher Corporation makes a product with the following standards for direct labor and
variable overhead:
A. $3,096 F
B. $52,966 U
C. $52,966 F
D. $3,096 U
The variable overhead rate variance for power is closest to: A. $1,380 F
B. $862 F
C. $2,242 F
D. $2,242 U
A. 1,500 hours
B. 1,600 hours
The standard number of machine-hours allowed for July production is: • Actual variable manufacturing overhead cost incurred: $22,620
• Actual machine-hours worked: 1,600 hours
• Variable overhead rate variance: $3,420 Unfavorable
• Total variable overhead spending variance: $4,620 Unfavorable
358.The Maxwell Corporation has a standard costing system in which variable manufacturing
overhead is assigned to production on the basis of standard machine-hours. The
following data are available for July:
A. $8,040 Unfavorable
B. $8,040 Favorable
C. $1,200 Unfavorable
D. $1,200 Favorable
The variable overhead efficiency variance for July is: • Actual variable manufacturing overhead cost incurred: $22,620
• Actual machine-hours worked: 1,600 hours
• Variable overhead rate variance: $3,420 Unfavorable
• Total variable overhead spending variance: $4,620 Unfavorable
357.The Maxwell Corporation has a standard costing system in which variable manufacturing
overhead is assigned to production on the basis of standard machine-hours. The
following data are available for July:
54,5 machine10 hours
$132 ,685
$108 ,158
Indirect labor and power are both elements of variable manufacturing overhead.
Actual machinehours (total)
Actual indirect
labor cost (total)
Actual power
cost (total)
C. 1,700 hours
D. 2,270 hours