CH11-Q3)

REQUIRED:

1. How many patient hours were recorded?

2. What was the budgeted fixed cost?

3. What was the production volume variance?

4. What was the actual fixed overhead?

Waterway Pet Clinic charges its patients on the basis of actual direct costs incurred plus fixed costs at the rate of $41 per hour. The fixed cost rate of $41 per hour is based on the assumption of 5,500 patient hours monthly, assuming that each patient requires a half hour. During September, 10,040 patients were seen and the following costs were recorded. $234,520 Fixed overhead costs allocated to patients Fixed overhead spending variance 26,400 Unfavourable