Picozzi Snow Removalrs cost formula for its vehicle operating cost is $2,060 per month plus $306 per snow-day. For the month of January, the company planned for activity of 16 snow-days, but the actual level of activity was 18 snow-days. The actual vehicle operating cost for the month was $7,720. The vehicle operating cost in the planning budget for January would be closest to: A) $7,568 4) 56,956 C) $7,720 D) $6,862 5) Bailey Corporation manufactures orange safety suits for road workers, The following information relates to the corporation's purchases and use of material for April: 57 Material purchased Material used in production Standard material allowed for suits produced 12.000 yards 10,000 yards 10,800 yards The company's materials price variance for April was $3,000 Favorable. Its materials quantity variance for April was $5,000 Favorable. What does the company use as a standard price per yard of material for its safety suits? A) $5.75 per yard c) $6.25 per yard B) $6.00 per yard D) $6.50 per yard 6 6) Krizun Industries makes heavy construction equipment. The standard for a particular crane calls for 20 direct labor-hours at $24 per direct labor-hour. During a recent period. 875 cranes were made. The labor efficiency variance was $1,200 Unfavorable. How many actual direct labor-hours were worked? A) 17,450 direct labor-hours B) 17,500 direct labor-hours D) 17,600 direct labor-hours C) 17,550 direct labor-hours 7) At Eady Corporation, maintenance is a variable overhead cost that is based on machine-hours. The performance report for July showed that actual maintenance costs totaled $8,650 and that the associated rate variance was $250 unfavorable. If 5,000 machine-hours were actually worked during July, the standard maintenance cost per 7) machine-hour was: B) $1.73 per MH A) $1.78 per MH C) $1.68 per MH D) $1.83 per MH 8) Gipple Corporation makes a product that uses a material with the quantity standard of 7.3 grams per unit of output and the price standard of $6.00 per gram. In January the company produced 3,400 units using 24,870 grams of the direct material. During the month the company purchased 27,400 grams of the direct material at $6.10 per gram. The direct materials purchases variance is computed when the materials are purchased. 8 The materials quantity variance for January is: A) $305 F B) $300 U C) $305 U D) $300 F 3