1. The Reedy Company uses a standard costing system. The following data are available for November:

Actual direct labor-hours worked	4,300	hours
Standard direct labor rate	$7.90	per hour
Labor rate variance	$1,290	favorable

The actual direct labor rate for November is:

$7.60

$8.20

$7.75

$7.90

2. Tolentino 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 November, the kennel budgeted for 4,000 tenant-days, but its actual level of activity was 4,050 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:

Data used in budgeting:

	Fixed element per month	Variable element per tenant-day
Revenue		$31.70
Wages and salaries	$2,800	$7.00
Expendables	900	11.30
Facility expenses	8,300	3.20
Administrative expenses	7,900	0.40
Total expenses	$19,900	$21.90

Actual results for November:

Revenue	$123,185
Wages and salaries	$30,590
Expendables	$48,021
Facility expenses	$17,210
Administrative expenses	$8,675

The net operating income in the flexible budget for November would be closest to:

$19,300

$39,690

$39,200

$19,790

3. The following materials standards have been established for a particular product:

Standard quantity per unit of output		3.8	pounds
Standard price	$	21.0	per pound

The following data pertain to operations concerning the product for the last month:

Actual materials purchased		2,860	pounds
Actual cost of materials purchased	$	57,772
Actual materials used in production		2,320	pounds
Actual output		580	units

Required:

a.	What is the materials price variance for the month? (Input the amount as positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Materials price variance

$

b.

What is the materials quantity variance for the month? (Input the amount as positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your answer to the nearest dollar amount.)

Materials quantity variance

$

4.

Vera Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 28,000 customers, but actually served 27,400 customers. The company has provided the following data concerning the formulas it uses in its budgeting:

	Fixed element per month			Variable element per customer
Revenue		-		$	5.80
Wages and salaries	$	35,800		$	2.30
Supplies	$	0		$	0.80
Insurance	$	13,000		$	0.00
Miscellaneous	$	7,500		$	0.40

Required:

Prepare the company's flexible budget for September based on the actual level of activity for the month. (Input all amounts as positive values.)

Vera Corporation Flexible Budget For the Month Ended September 30
Revenue	$
Expenses:
Wages and salaries
Supplies
Insurance
Miscellaneous
Total expense
Net operating income	$