5. LL Jeans makes and sells jeans. Each pair of jeans takes 2.7 hours of direct labor to hand stich and customize at the rate of $23.00 per direct labor-hour.

The company plans to sell 46,000 jeans in September for the back to school rush. LL Jeans finished goods inventory on September 1 is budgeted to be 580 pairs of jeans and September 30 is budgeted to be 140 jeans. Budgeted direct labor costs for September would be:

A. $1,050,500

B. $2,829,276

C. $2,848,026

D. $2,866,776

6. Eye Spy, an eye clinic basis its activity on patient-visits. Last month, Eye Spy had 1,100 patients and had a budgeted level of activity of 1,110 patient. To determine administrative expenses, Eye Spy uses the cost formula of $3.50 per patient plus fixed admin expenses of $19,500 per month. Last month, admin expenses totaled $20,800. Eye Spys flexible budget performance report for last month, the spending variance for administrative expenses was:

A. $2,550 F

B. $970 F

C. $35 F

D. $2,585 F