Arkin 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 May, the kennel budgeted for 3,100 tenant-days, but its actual level of activity was 3,070 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:

Data used in budgeting:

Actual results for May:

The spending variance for expendables in May would be closest to:

$784 U

$1,120 F

$784 F

$1,120 U

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Question 31pts

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours.

The following data pertain to operations for the last month:

What is the variable overhead rate variance for the month?

$1,739 U

$595 F

$595 U

$1,739 F

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Question 41pts

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours.

The following data pertain to operations for the last month:

What is the variable overhead efficiency variance for the month?

$1,172 F

$567 F

$1,172 U

$1,144 U

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Question 51pts

Able Control Company, which manufactures electrical switches, uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of standard direct labor-hours (DLHs). The standard overhead costs are shown below:

*Based on 300,000 DLHs per month.

The following information is available for the month of October:

Plans called for the production of 60,000 switches.

56,000 switches were actually produced.

275,000 direct labor-hours were worked at a total cost of $2,550,000.

Actual variable manufacturing overhead costs were $2,340,000.

Actual fixed manufacturing overhead costs were $3,750,000.

The fixed manufacturing overhead budget variance for October was:

$48,000 Unfavorable

$150,000 Unfavorable

$300,000 Favorable

$390,000 Unfavorable

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Question 61pts

When the actual direct labor-hours exceeds the standard direct labor-hours allowed for the actual output of the period, the journal entry would include:

Debit to Wages Payable; Credit to Labor Efficiency Variance

Debit to Work-In-Process; Credit to Labor Efficiency Variance

Debit to Wages Payable; Debit to Labor Efficiency Variance

Debit to Work-In-Process; Debit to Labor Efficiency Variance