Q1 Neeb Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 7,160 units, but its actual level of activity was 7,360 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:

Data used in budgeting:

	Fixed element per month			Variable element per unit
Revenue		-		$	28.80
Direct labor	$	0		$	4.80
Direct materials		0			11.30
Manufacturing overhead		45,900			2.70
Selling and administrative expenses		11,000			0.50
Total expenses	$	56,900		$	19.30

Actual results for January:

Revenue	$	185,048
Direct labor	$	24,778
Direct materials	$	70,408
Manufacturing overhead	$	51,384
Selling and administrative expenses	$	14,746

The activity variance for selling and administrative expenses in January would be closest to:

Multiple Choice

• $166 U

• $100 U

• $166 F

• $100 F

Q2 Doogan Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate
Direct materials		2.0	grams	$	7.00	per gram
Direct labor		1.0	hours	$	14.00	per hour
Variable overhead		1.0	hours	$	6.00	per hour

The company produced 4,700 units in January using 10,280 grams of direct material and 2,260 direct labor-hours. During the month, the company purchased 10,850 grams of the direct material at $7.30 per gram. The actual direct labor rate was $14.55 per hour and the actual variable overhead rate was $5.80 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 January is:

Multiple Choice

• $6,160 F

• $6,424 U

• $6,424 F

• $6,160 U