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

Budgeted number of patient-visits	9,700
Budgeted variable costs:
Supplies (@ $9.80 per patient-visit)	$ 95,060
Laundry (@ $9.50 per patient-visit)	92,150
Total variable cost	187,210
Budgeted fixed costs:
Wages and salaries	99,770
Occupancy costs	107,770
Total fixed cost	207,540
Total cost	$394,750

The total variable cost at the activity level of 9,800 patient-visits per month should be:

a. $209,870

b. $207,540

c. $187,210

d. $189,140

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	0.7 hours	$17.00 per hour
Variable overhead	0.7 hours	$3.00 per hour

2. In July the company produced 4,900 units using 10,250 pounds of the direct material and 2,230 direct labor-hours. During the month, the company purchased 10,820 pounds of the direct material at a cost of $76,700. The actual direct labor cost was $38,235 and the actual variable overhead cost was $11,936.

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 materials quantity variance for July is:

rev: 11_06_2015_QC_CS-32670

a. $820 U

b. $960 F

c. $3,150 U

d. $820 F