Question
Budgeted number of patient-visits 8,800 Budgeted variable costs: Supplies (@ $8.90 per patient-visit) $ 78,320 Laundry (@ $8.60 per patient-visit) 75,680 Total variable cost 154,000
Budgeted number of patient-visits | 8,800 |
Budgeted variable costs: | |
Supplies (@ $8.90 per patient-visit) | $ 78,320 |
Laundry (@ $8.60 per patient-visit) | 75,680 |
Total variable cost | 154,000 |
Budgeted fixed costs: | |
Wages and salaries | 99,680 |
Occupancy costs | 107,680 |
Total fixed cost | 207,360 |
Total cost | $361,360 |
The total variable cost at the activity level of 8,900 patient-visits per month should be:
$209,690
$154,000
$155,750
$207,360
2.
Epley Corporation makes a product with the following standard costs: |
Standard Quantity or Hours | Standard Price or Rate | |
Direct materials | 2.0 pounds | $7.00 per pound |
Direct labor | 0.5 hours | $13.00 per hour |
Variable overhead | 0.5 hours | $7.00 per hour |
In July the company produced 4,500 units using 10,110 pounds of the direct material and 2,090 direct labor-hours. During the month, the company purchased 10,680 pounds of the direct material at a cost of $76,560. The actual direct labor cost was $38,257 and the actual variable overhead cost was $11,958. |
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: |
rev: 11_06_2015_QC_CS-32670
$1,660 U
$1,800 F
$7,770 U
$1,660 F
3-
Epley Corporation makes a product with the following standard costs: |
Standard Quantity or Hours | Standard Price or Rate | |
Direct materials | 10.0 pounds | $9.5 per pound |
Direct labor | 0.8 hours | $32.00 per hour |
Variable overhead | 0.8 hours | $15.00 per hour |
In July the company produced 3,430 units using 13,720 pounds of the direct material and 2,864 direct labor-hours. During the month, the company purchased 14,480 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $91,236 and the actual variable overhead cost was $41,188. |
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: |
$412 F
$412 U
$3,428 U
$3,428 F
4-
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 | 1.5 pounds | $6.00 per pound | $9.00 |
Direct labor | 0.6 hours | $18 per hour | $10.8 |
Variable manufacturing overhead | 0.6 hours | $4.25 per hour | $2.55 |
During March, the following activity was recorded by the company: |
The company produced 5,400 units during the month. |
A total of 11,600 pounds of material were purchased at a cost of $32,480. |
There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,320 pounds of material remained in the warehouse. |
During March, 3,440 direct labor-hours were worked at a rate of $18.50 per hour. |
Variable manufacturing overhead costs during March totaled $8,972. |
The direct materials purchases variance is computed when the materials are purchased. |
The materials price variance for March is: |
$37,120 U
$17,380 F
$17,380 U
$37,120 F
5-
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 | $7.50 per ounce | $22.50 |
Direct labor | 0.7 hours | $20.00 per hour | $14.00 |
Variable overhead | 0.7 hours | $7.00 per hour | $4.90 |
The company reported the following results concerning this product in December. |
Originally budgeted output | 4,450 | units |
Actual output | 4,250 | units |
Raw materials used in production | 13,200 | ounces |
Actual direct labor-hours | 3,425 | hours |
Purchases of raw materials | 14,930 | ounces |
Actual price of raw materials | $7.30 | per ounce |
Actual direct labor rate | $18.80 | per hour |
Actual variable overhead rate | $7.10 | 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 materials quantity variance for December is: |
rev: 04_20_2016_QC_CS-49357
$3,375 U
$3,285 F
$3,375 F
$3,285 U
6-
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 | $8.50 per ounce | $25.50 |
Direct labor | 0.8 hours | $14.50 per hour | $11.60 |
Variable overhead | 0.8 hours | $7.00 per hour | $5.60 |
The company reported the following results concerning this product in December. |
Originally budgeted output | 8,400 | units |
Actual output | 8,200 | units |
Raw materials used in production | 24,360 | ounces |
Actual direct labor-hours | 6,760 | hours |
Purchases of raw materials | 25,960 | ounces |
Actual price of raw materials | 8.25 | per ounce |
Actual direct labor rate | 15.60 | per hour |
Actual variable overhead rate | 7.10 | 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 materials price variance for December is: |
$8,130 U
$8,130 F
$6,490 F
$6,490 U
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