17 Kimon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3.450 client-visits, but its actual level of activity was 3.400 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Fixed Variable element element per per month client-visit $39.50 01:42:19 Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expenses $35,500 1,500 8,500 5,500 $51,000 $10.79 7.50 1.50 0.60 $20.30 The activity variance for personnel expenses in July would be closest to: Male Choice $535 F $2.975 U $2.975 $535 U Tharaldson Corporation makes a product with the following standard costs: 18 Standard Quantity or Hours 7.4 ounces Standard Cost Per Unit $14.80 8 Direct materials 01:42:02 Standard Price or Rate $ 2.00 per ounce $18.00 per hour $ 7.00 per hour Direct labor Variable overhead 0.8 hours 0.8 hours $14.40 $ 5.60 The company reported the following results concerning this product in June. Originally budgeted output 2,800 units Actual output 2,400 units Raw materials used in production 20,600 ounces Purchas of raw materials 21,700 ounces Actual direct labor-hours 4,400 hours Actual cost of raw materials purchases $42,200 Actual direct labor cost $12,800 Actual variable overhead cost $ 3,400 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 June is: Multiple Choice O $1.200 F o $1,200 U $1,953 F O $1,953 U Majer Corporation makes a product with the following standard costs: 19 2 01:41:51 Standard Cost Per Unit $24.80 $11.90 $ 2.80 Standard Quantity or Hours 6.2 ounces 0.7 hours 0.7 hours Direct materials Direct labor Variable overhead Standard Price or Rate $ 4.00 per ounce $ 17.00 per hour $ 4.00 per hour The company reported the following results concerning this product in February Originally budgeted output 4,900 units Actual output 5,000 units Raw materials used in production 30,200 ounces Actual direct labor-hours 1,840 hours Purchases of raw materials 32,600 ounces Actual price of raw materials Actual direct labor rate $ 57.60 per hour Actual variable overhead rate $ 5.80 per hour $ 67.10 per ounce 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 February is: Multiple Choice $3,200 F $3,137 F O $3,200 U O O $3,137 U Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below: 22 Alternative Alternative A B $53,000 $71,500 01:41:45 $ 48,700 $48,700 Materials costs Processing costs Equipment rental Occupancy costs $ 16,900 $ 16,900 $19, 200 $28,500 What is the financial advantage (disadvantage) of Alternative B over Alternative A? Multiple Choice $137,800 $(27,800) $165,600 $(151,700)