Question
1.Paradiso Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,120 patient-visits and the actual level of
1.Paradiso Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,120 patient-visits and the actual level of activity was 1,110 patient-visits. The cost formula for administrative expenses is $3.60 per patient-visit plus $20,000 per month. The actual administrative expense was $21,100. In the clinic's performance report for last month, the spending variance for administrative expenses was:
A.$36 F
B.$1,120 U
C.$2,896 F
D.$2,932 F
2.Gandrud 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 June, the kennel budgeted for 2,600 tenant-days, but its actual level of activity was 2,580 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
Fixed element per month | Variable element per tenant-day | |
Revenue | $37.10 | |
Wages and salaries | $3,400 | $7.30 |
Food and supplies | 1,200 | 14.00 |
Facility expenses | 9,600 | 2.60 |
Administrative expenses | 7,700 | 0.30 |
Total expenses | $21,900 | $24.20 |
The food and supplies in the flexible budget for June would be closest to:
A.$37,569
B.$36,993
C.$37,320
D.$37,600
3.The Fischer Corporation uses a standard costing system. The following data have been assembled for December: |
Actual direct labor-hours worked | 5,100 | hours |
Standard direct labor rate | $8 | per hour |
Labor efficiency variance | $2,800 | unfavorable |
The standard hours allowed for December's production is: A.5,100 hours B.4,400 hours C.4,750 hours D.5,450 hours
|
4.The following labor standards have been established for a particular product: |
Standard labor-hours per unit of output | 10.3 | hours |
Standard labor rate | $14.10 | per hour |
The following data pertain to operations concerning the product for the last month: |
Actual hours worked | 8,100 | hours |
Actual total labor cost | $110,970 | |
Actual output | 900 | units |
What is the labor efficiency variance for the month? A.$19,737 F B.$19,737 U C.$16,029 F D.$16,497 F
5.The following labor standards have been established for a particular product:
What is the labor rate variance for the month? A.$2,877 F B.$4,246 F C.$4,246 U D.$1,295 F |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started