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

Budgeted number of patient-visits 8,900

Budgeted variable cost;

Supplies (@$10.00 per patient-visits) $89,000

Laundry (@$9.70 per patient-visit) 86,330

Total variable cost 175,330

Budgeted fixed costs;

Wages and Salaries 99,840

Occupancy costs 107,840

Total fixed cost 207,680

Total cost $383,010

The total variable cost at the activity level of 9,000 patient-visits per month should be:

$177,300 $207,680 $210,010 $175,330

2. Epley Corporation makes a product with the following standard costs;

Standard Quantity or Hours Standard Price or Rate

Direct materials 2.0 pounds $7.00 per pound

Direct Labor 1.6 hours $14.00 per hour

Variable overhead 1.6 hours $2.00 per hour

In July the company produced 4,600 units using 10,220 pounds of the direct material and 2,200 direct labor-hours. During the month, the company purchased 10,790 pounds of the direct material at a cost of $76,670 The actual direct labor cost was $38,246 and the actual variable overhead cost was $11,947. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchasesvariance is computed when the materials are purchased. The material quantity variance for July is;

$1,000 U $1,140 F $7,140 U $1,000 F

3. Epley Corporation makes a product with the following standard costs;

Standard Quantity or Hours Standard Price or Rate

Direct materials 12.0 pounds $11.5 per pound

Direct Labor 0.8 hours $36.00 per hour

Variable overhead 0.8 hours $17.00 per hour

In July the company produced 3,470 units using 13,880 pounds of the direct material and 2,896 direct labor-hours. During the month, the company purchased 14,640 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $103,840 and the actual variable overhead cost was $47,220.

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;

$416 F $416 U $3,904 U 3,904 F

Pardoe, Inc. manfactures 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 followiing 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 pruchased 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 poundsf of material remained in the warehouse.

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

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

The direct materials pruchases 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

5. Oddo Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standared Price or Rate Standard Cost Per Unit

Direct materials 4.0 ounces $8.40 per ounce $33.60

Direct labor 0.9 hours $30.00 per hour $27.00

Variable overhead 0.9 hours $8.00 per hour $7.20