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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

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