please answer the question.

Puvo, Incorporated, 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	$ 3.75	per pound	$ 5.62
Direct labor	0.5	hours	$ 9.00	per hour	$ 4.50
Variable manufacturing overhead	0.5	hours	$ 2.00	per hour	$ 1.00

During March, the following activity was recorded by the company:

• The company produced 3,600 units during the month.
• A total of 8,900 pounds of material were purchased at a cost of $24,920.
• There was no beginning inventory of materials on hand to start the month; at the end of the month, 1,780 pounds of material remained in the warehouse.
• During March, 2,000 direct labor-hours were worked at a rate of $9.50 per hour.
• Variable manufacturing overhead costs during March totaled $2,200.

The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for March is:

Multiple Choice

• $6,450 U

• $6,450 F

• $12,520 U

• $12,520 F

Rhed 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 December, the kennel budgeted for 4,500 tenant-days, but its actual level of activity was 4,450 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:

Data used in budgeting:

	Fixed element per month	Variable element per tenant-day
Revenue	$ 0	$ 35.50
Wages and salaries	$ 3,800	$ 9.30
Food and supplies	2,200	14.50
Facility expenses	9,800	6.00
Administrative expenses	7,800	0.60
Total expenses	$ 23,600	$ 30.40

Actual results for December:

Revenue	$ 157,150
Wages and salaries	$ 45,470
Food and supplies	$ 65,615
Facility expenses	$ 36,680
Administrative expenses	$ 9,300

The activity variance for administrative expenses in December would be closest to:

Multiple Choice

• $30 F

• $1,200 U

• $1,200 F

• $30 U

Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:

• Sales are budgeted at $390,000 for November, $370,000 for December, and $360,000 for January.
• Collections are expected to be 40% in the month of sale and 60% in the month following the sale.
• The cost of goods sold is 80% of sales.
• The company would like to maintain ending merchandise inventories equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
• Other monthly expenses to be paid in cash are $24,500.
• Monthly depreciation is $15,500.
• Ignore taxes.

Balance Sheet
October 31
Assets
Cash	$ 20,500
Accounts receivable	70,500
Merchandise inventory	218,400
Property, plant and equipment, net of $572,500 accumulated depreciation	1,094,500
Total assets	$ 1,403,900
Liabilities and Stockholders' Equity
Accounts payable	$ 254,500
Common stock	820,500
Retained earnings	328,900
Total liabilities and stockholders' equity	$ 1,403,900

Expected cash collections in December are:

Multiple Choice

• $148,000

• $234,000

• $382,000

• $370,000

Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 7,000 units, but its actual level of activity was 6,960 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June:

Data used in budgeting:

	Fixed element per month	Variable element per unit
Revenue	$ 0	$ 28.40
Direct labor	$ 0	$ 2.80
Direct materials	0	10.70
Manufacturing overhead	38,000	1.50
Selling and administrative expenses	23,600	0.30
Total expenses	$ 61,600	$ 15.30

Actual results for June:

Revenue	$ 205,320
Direct labor	$ 18,974
Direct materials	$ 72,252
Manufacturing overhead	$ 48,320
Selling and administrative expenses	$ 25,768

The activity variance for net operating income in June would be closest to:

Multiple Choice

• $9,906 F

• $524 U

• $524 F

• $9,906 U