1. value:

2.00 points

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

Budgeted number of patient-visits	8,200
Budgeted variable costs:
Supplies (@ $8.30 per patient-visit)	$ 68,060
Laundry (@ $8.00 per patient-visit)	65,600
Total variable cost	133,660
Budgeted fixed costs:
Wages and salaries	99,620
Occupancy costs	107,620
Total fixed cost	207,240
Total cost	$340,900

The total variable cost at the activity level of 8,300 patient-visits per month should be:

$133,660$207,240$135,290$209,570

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

	Standard Quantityor Hours	Standard Price or Rate
Direct materials	2.0 pounds	$7.00 per pound
Direct labor	0.8 hours	$16.00 per hour
Variable overhead	0.8 hours	$4.00 per hour

In July the company produced 4,500 units using 10,260 pounds of the direct material and 2,240 direct labor-hours. During the month, the company purchased 10,830 pounds of the direct material at a cost of $76,710. The actual direct labor cost was $38,236 and the actual variable overhead cost was $11,937.

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:

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A. $760 U

B. $900 F

C. $8,820 U

D. $760 F

3. value: 2.00 points

Epley Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate
Direct materials	6.0 pounds	$5.5 per pound
Direct labor	0.8 hours	$24.00 per hour
Variable overhead	0.8 hours	$11.00 per hour

In July the company produced 3,350 units using 13,400 pounds of the direct material and 2,800 direct labor-hours. During the month, the company purchased 14,160 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $66,796 and the actual variable overhead cost was $29,508.

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:

A.$404 F B. $404 U C. $2,476 U D. $2,476 F

4. value:

2.00 points

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	2.5 pounds	$6.50 per pound	$16.25
Direct labor	0.6 hours	$20 per hour	$12.0
Variable manufacturing overhead	0.6 hours	$4.75 per hour	$2.85

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

The company produced 5,800 units during the month.

A total of 18,500 pounds of material were purchased at a cost of $51,800.

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

3,700 pounds of material remained in the warehouse.

During March, 3,680 direct labor-hours were worked at a rate of $20.50 per hour.

Variable manufacturing overhead costs during March totaled $10,688.

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

The materials price variance for March is:

A. $68,450 U

B. $29,300 F

C. $29,300 U

D. $68,450 F

5. value:

2.00 points

Oddo Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost PerUnit
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.

Originallybudgetedoutput	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 materials quantity variance for December is:

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A. $2,187 U

B. $2,133 F

C. $2,187 F

D. $2,133 U

6. value: 2.00 points

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	$4.50 per ounce	$13.50
Direct labor	0.6 hours	$10.50 per hour	$6.30
Variable overhead	0.6 hours	$3.00 per hour	$1.80

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

Originally budgeted output	5,200	units
Actual output	5,000	units
Raw materials used in production	15,080	ounces
Actual direct labor-hours	3,200	hours
Purchases of raw materials	16,680	ounces
Actual price of raw materials	4.25	per ounce
Actual direct labor rate	10.30	per hour
Actual variable overhead rate	3.30	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 materials price variance for December is:

A. $3,410 U B. $3,410 F C. $4,170 F D. $4,170 U

7. value:

2.00 points

Oddo Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost PerUnit
Direct materials	3.0 ounces	$7.10 per ounce	$21.30
Direct labor	0.6 hours	$21.00 per hour	$12.60
Variable overhead	0.6 hours	$6.00 per hour	$3.60

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

Originallybudgetedoutput	4,410	units
Actual output	4,210	units
Raw materials used in production	13,000	ounces
Actual direct labor-hours	2,896	hours
Purchases of raw materials	14,690	ounces
Actual price of raw materials	$6.90	per ounce
Actual direct labor rate	$18.40	per hour
Actual variable overhead rate	$6.10	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:

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A. $2,257 U

B. $2,220 F

C. $2,220 U

D. $2,257 F

8. value:

2.00 points

Midgley Corporation makes a product whose direct labor standards are 0.6 hours per unit and $26 per hour. In April the company produced 7,250 units using 3,850 direct labor-hours. The actual direct labor cost was $80,850.

The labor efficiency variance for April is:

A. $13,000 UB. $13,000 FC. $32,250 FD. $32,250 U