351. Zacher Corporation makes a product with the following standards for direct labor and
variable overhead:
Standard Quantity or
Hours Standard Price or
Rate Standard Cost Per
Unit
Direct labor 0.3 hours $24.00 per hour $7.20
Variable overhead0.3 hours $5.00 per hour $1.50
In February the company’s budgeted production was 6,900 units, but the actual production was
7,000 units. The company used 1,980 direct labor-hours to produce this output. The actual
variable overhead cost was $10,296. The company applies variable overhead on the basis of
direct labor-hours.
The variable overhead efficiency variance for February is:
352. Zacher Corporation makes a product with the following standards for direct labor and
variable overhead:
Standard Quantity or
Hours Standard Price or
Rate Standard Cost Per
Unit
Direct labor 0.3 hours $24.00 per hour $7.20
Variable overhead0.3 hours $5.00 per hour $1.50
In February the company’s budgeted production was 6,900 units, but the actual production was
7,000 units. The company used 1,980 direct labor-hours to produce this output. The actual
variable overhead cost was $10,296. The company applies variable overhead on the basis of
direct labor-hours.
The variable overhead rate variance for February is:
353. The following data have been provided by Mathews Corporation:
Budgeted production 6,900 units
Standard machine-hours per unit 9.4 machine-hours
Standard lubricants rate $1.20 per machine-hour
Standard supplies rate $1.00 per machine-hour
Actual production 7,000 units
Actual machine-hours (total) 66,230 machine-hours
Actual lubricants cost (total) $78,100
Actual supplies cost (total) $66,536
Lubricants and supplies are both elements of variable manufacturing overhead.
The variable overhead rate variance for lubricants is closest to:
354. The following data have been provided by Mathews Corporation:
Budgeted production 6,900 units
Standard machine-hours per unit 9.4 machine-hours
Standard lubricants rate $1.20 per machine-hour
Standard supplies rate $1.00 per machine-hour
Actual production 7,000 units
Actual machine-hours (total) 66,230 machine-hours
Actual lubricants cost (total) $78,100
Actual supplies cost (total) $66,536
Lubricants and supplies are both elements of variable manufacturing overhead.
The variable overhead rate variance for supplies is closest to:
355. The following data have been provided by Petri Corporation:
Budgeted production 7,800 motors
Standard machine-hours per motor 6.9 machine-hours
Standard indirect labor rate $2.50 per machine-hour
Standard power rate $2.00 per machine-hour
Actual production 8,000 motors
Actual machine-hours (total) 54,510 machine-hours
Actual indirect labor cost (total) $132,685
Actual power cost (total) $108,158
Indirect labor and power are both elements of variable manufacturing overhead.
The variable overhead rate variance for indirect labor is closest to:
356. The following data have been provided by Petri Corporation:
Budgeted production 7,800 motors
Standard machine-hours per motor 6.9 machine-hours
Standard indirect labor rate $2.50 per machine-hour
Standard power rate $2.00 per machine-hour
Actual production 8,000 motors
Actual machine-hours (total) 54,510 machine-hours
Actual indirect labor cost (total) $132,685
Actual power cost (total) $108,158
Indirect labor and power are both elements of variable manufacturing overhead.
The variable overhead rate variance for power is closest to:
357. The Maxwell Corporation has a standard costing system in which variable manufacturing
overhead is assigned to production on the basis of standard machine-hours. The following data
are available for July:
• Actual variable manufacturing overhead cost incurred: $22,620
• Actual machine–hours worked: 1,600 hours
• Variable overhead rate variance: $3,420 Unfavorable
• Total variable overhead spending variance: $4,620 Unfavorable
The variable overhead efficiency variance for July is:
358. The Maxwell Corporation has a standard costing system in which variable manufacturing
overhead is assigned to production on the basis of standard machine-hours. The following data
are available for July:
• Actual variable manufacturing overhead cost incurred: $22,620
• Actual machine–hours worked: 1,600 hours
• Variable overhead rate variance: $3,420 Unfavorable
• Total variable overhead spending variance: $4,620 Unfavorable
The standard number of machine-hours allowed for July production is:
359. Sinopoli Corporation bases its budgets on machine-hours. The company’s static planning
budget for September appears below:
Budgeted number of machine-hours 8,500
Budgeted variable costs:
Supplies (@ $1.50 per machine-hour) $12,750
Power (@ $3.30 per machine-hour) 28,050
Budgeted fixed costs:
Salaries 15,300
Equipment depreciation 37,400
Total expense $93,500
Required:
Prepare a flexible budget for 8,600 machine-hours per month.
8-491
360. Gearhart Corporation bases its budgets on the activity measure customers served. During
September, the company planned to serve 25,000 customers, but actually served 29,000
customers. The company has provided the following data concerning the formulas it uses in its
budgeting:
Fixed element per month Variable element per
customer
Revenue − $3.10
Wages and salaries $23,700 $0.80
Supplies $0 $0.60
Insurance $5,300 $0.00
Miscellaneous expense $3,200 $0.20
Required:
Prepare the company’s flexible budget for September based on the actual level of activity for the
month.
8-492
361. During November, Guerreiro Clinic budgeted for 2,200 patient-visits, but its actual level of
activity was 2,500 patient-visits. Revenue should be $49.00 per patient-visit. Personnel expenses
should be $30,700 per month plus $14.70 per patient-visit. Medical supplies should be $1,800 per
month plus $6.50 per patient-visit. Occupancy expenses should be $7,600 per month plus $1.40
per patient-visit. Administrative expenses should be $4,700 per month plus $0.10 per patient–
visit.
Required:
Prepare the clinic’s flexible budget for November based on the actual level of activity for the
month.
8-493
362. Cearns Memorial Diner is a charity supported by donations that provides free meals to
the homeless. The diner’s budget for December is to be based on 3,900 meals. The diner’s
director has provided the following cost formulas to use in the budget:
Fixed element per month Variable element per meal
Groceries $0 $3.45
Kitchen operations $5,700 $1.10
Administrative expenses $3,100 $0.85
Fundraising expenses $1,600 $0.00
Required:
Prepare the diner’s budget for the month of December. The budget will only contain the costs
listed above; no revenues will be on the budget.
8-494
363. Viel Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for April was based on 3,100 meals, but the diner actually served
3,300 meals. The diner’s director has provided the following cost data to use in the budget:
groceries, $3.95 per meal; kitchen operations, $5,200 per month plus $1.40 per meal;
administrative expenses, $3,300 per month plus $0.80 per meal; and fundraising expenses,
$1,800 per month.
Required:
Prepare the diner’s flexible budget for the actual number of meals served in April. The budget
will only contain the costs listed above; no revenues will be on the budget.
8-495
364. Mcindoe Clinic bases its budgets on the activity measure patient-visits. During May, the
clinic planned for an activity level of 3,200 patient-visits, but the activity level was actually 3,600
patient-visits. The clinic has provided the following data concerning the formulas it uses in its
budgeting:
Fixed element per month Variable element per
patient-visit
Revenue – $32.50
Personnel expenses $24,700 $10.10
Medical supplies $600 $6.10
Occupancy expenses $7,700 $0.90
Administrative expenses $2,800 $0.20
Required:
Prepare the clinic’s flexible budget for May based on the actual level of activity for the month.
8-497
365. Bracamonte Hospital bases its budgets on patient-visits. The hospital’s static planning
budget for November appears below:
Budgeted number of patient-visits 8,100
Budgeted variable costs:
Supplies (@ $4.90 per patient-visit) $39,690
Laundry (@ $4.80 per patient-visit) 38,880
Budgeted fixed costs:
Wages and salaries 46,980
Occupancy costs 44,550
Total expense $170,100
Required:
Prepare a flexible budget for 8,900 patient-visits per month.
366. During July, Heron Corporation plans to serve 23,000 customers. Revenue is $6.80 per
customer served. Wages and salaries are $39,900 per month plus $2.50 per customer served.
Supplies are $1.40 per customer served. Insurance is $10,300 per month. Miscellaneous
expenses are $4,800 per month plus $0.20 per customer served.
Required:
Prepare the company’s planning budget for July.
8-499
367. Hey Clinic bases its budgets on patient-visits. During September, the clinic plans for a
level of activity of 2,500 patient-visits. The clinic has provided the following data concerning the
formulas it uses in its budgeting:
Fixed element per month Variable element per
patient-visit
Revenue − $60.90
Personnel expenses $38,600 $18.10
Medical supplies $1,700 $11.20
Occupancy expenses $9,900 $2.70
Administrative expenses $6,200 $0.20
Required:
Prepare the clinic’s planning budget for September.
8-500
368. During January, Desousa Clinic plans for an activity level of 3,200 patient-visits. Revenue
is $38.50 per patient-visit. Personnel expenses are $36,700 per month plus $10.20 per patient-
visit. Medical supplies are $1,800 per month plus $6.00 per patient-visit. Occupancy expenses are
$7,600 per month plus $1.50 per patient-visit. Administrative expenses are $4,600 per month plus
$0.20 per patient-visit.
Required:
Prepare the clinic’s planning budget for January.