1.

Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4,800 client-visits, but its actual level of activity was 4,780 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Q1 Data for Budgeting Data Fixed element per month Variable element per client-visit Revenue $ 0 $ 36.80 Personnel expenses $ 28,800 $ 12.80 Medical supplies 1,700 6.80 Occupancy expenses 10,700 1.00 Administrative expenses 7,800 0.40 Total expenses $ 49,000 $ 21.00 Actual results for January: Q1 Results for January Revenue $ 133,000 Personnel expenses $ 70,040 Medical suppl lies $ 21,016 Occupancy expenses $ 14,250 Administrative expenses $ 8,100 The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for January would be closest to: $7,246 F $6,930 U $7,246 U $6,930 F

2.

Q2. Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,900 client-visits, but its actual level of activity was 3,890 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November: Q2: Data used in budgeting: Data Fixed element per month Variable element per client-visit month Revenue $ 0 $ 36.60 Personnel expenses $ 30,700 $ 11.60 Medical supplies 1,800 7.00 Occupancy expenses 8,800 3.10 Administrative expenses 7,100 0.40 =Total expenses $ 48,400 $ 22.10 Q2: Actual results for November: Revenue $ 142,568 Personnel expenses $ 75,788 Medical supplies $ 29,856 Occupancy expenses $ 20,367 Administrative expenses $ 8,423 The activity variance for personnel expenses in November would be closest to: $116 F $152 F $116 U $152 U

3.

At Eady Corporation, maintenance is a variable overhead cost that is based on machine-hours. The performance report for July showed that actual maintenance costs totaled $11,720 and that the associated rate variance was $380 unfavorable. If 6,300 machine-hours were actually worked during July, the standard maintenance cost per machine-hour was: $1.86 per MH $1.92 per MH $1.80 per MH $1.98 per MH

4. Lossing 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: Q4 Cost Data Item Original Budget Actual Costs Variable overhead costs: :Supplies $ 7,600 $ 7,790 :Indirect labor 10,700 10,050 Fixed overhead costs: :Supervision 15,410 14,470 :Utilities 14,700 14,750 :Factory depreciation 59,570 60,460 =Total overhead cost $ 107,980 $ 107,520 The company based its original budget on 7,600 machine-hours. The company actually worked 7,560 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 7,490 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month? (Round your intermediate calculations to 2 decimal places.) $1,202 Favorable $1,202 Unfavorable $1,298 Unfavorable $1,298 Favorable

5.

Q5. At the beginning of last year, Tarind Corporation budgeted $1,000,000 of fixed manufacturing overhead and chose a denominator level of activity of 500,000 machine-hours. At the end of the year, Tari's fixed manufacturing overhead budget variance was $14,000 favorable. Its fixed manufacturing overhead volume variance was $20,000 favorable. Actual direct labor-hours for the year were 525,000. What was Tari's total standard machine-hours allowed for last year's output? 1,020,000 510,000 1,070,000 1,050,000