1) Hettinger Hospital bases its budgets on patient-visits. The hospital's static budget for March appears below:

Budgeted number of patient-visits	8,600
Budgeted variable costs:
Supplies (@ $9.70 per patient-visit)	$ 83,420
Laundry (@ $9.40 per patient-visit)	80,840
Total variable cost	164,260
Budgeted fixed costs:
Wages and salaries	99,810
Occupancy costs	107,810
Total fixed cost	207,620
Total cost	$371,880

The total variable cost at the activity level of 8,700 patient-visits per month should be:

$166,170

$207,620

$164,260

$209,950

2)

Epley Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate
Direct materials	5.5 pounds	$5.0 per pound
Direct labor	0.8 hours	$23.00 per hour
Variable overhead	0.8 hours	$10.50 per hour

In July the company produced 3,340 units using 13,360 pounds of the direct material and 2,792 direct labor-hours. During the month, the company purchased 14,120 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $63,813 and the actual variable overhead cost was $28,084.

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 labor rate variance for July is:

$403 F

$403 U

$2,357 U

$2,357 F

3)

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:

	Standard Quantity	Standard Price or Rate	Standard Cost
Direct materials	1.5 pounds	$4.50 per pound	$6.75
Direct labor	0.6 hours	$12 per hour	$7.2
Variable manufacturing overhead	0.6 hours	$2.75 per hour	$1.65

During March, the following activity was recorded by the company:

The company produced 4,200 units during the month.

A total of 9,800 pounds of material were purchased at a cost of $27,440.

There was no beginning inventory of materials on hand to start the month; at the end of the month,

1,960 pounds of material remained in the warehouse.

During March, 2,720 direct labor-hours were worked at a rate of $12.50 per hour.

Variable manufacturing overhead costs during March totaled $4,688.

The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for March is:

$16,660 U

$14,140 F

$14,140 U

$16,660 F

4)

Oddo Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	3.0 ounces	$8.10 per ounce	$24.30
Direct labor	0.8 hours	$20.00 per hour	$16.00
Variable overhead	0.8 hours	$8.00 per hour	$6.40

The company reported the following results concerning this product in December.

Originally budgeted output	4,510	units
Actual output	4,310	units
Raw materials used in production	13,200	ounces
Actual direct labor-hours	3,718	hours
Purchases of raw materials	14,990	ounces
Actual price of raw materials	$7.90	per ounce
Actual direct labor rate	$19.40	per hour
Actual variable overhead rate	$8.20	per 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.

The variable overhead efficiency variance for December is:

$2,214 U

$2,160 F

$2,160 U

$2,214 F

5) Midgley Corporation makes a product whose direct labor standards are 0.9 hours per unit and $27 per hour. In April the company produced 7,300 units using 6,070 direct labor-hours. The actual direct labor cost was $127,470.

The labor efficiency variance for April is:

$13,500 U

$13,500 F

$49,920 F

$49,920 U