1.  Hettinger Hospital bases its budgets on patient-visits.  The hospital's static budget for March appears below:

Budgeted number of patient-visits 8,900

Budgeted variable cost;

Supplies (@$10.00 per patient-visits) $89,000

Laundry (@$9.70 per patient-visit) 86,330

Total variable cost 175,330

Budgeted fixed costs;

Wages and Salaries 99,840

Occupancy costs 107,840

Total fixed cost 207,680

Total cost $383,010

The total variable cost at the activity level of 9,000 patient-visits per month should be:

$177,300                             $207,680                             $210,010                           $175,330

 

2.  Epley Corporation makes a product with the following standard costs;

                               Standard Quantity or Hours                            Standard Price or  Rate

Direct materials          2.0 pounds                                                    $7.00 per pound

Direct Labor                1.6 hours                                                        $14.00 per hour

Variable overhead       1.6 hours                                                       $2.00 per hour

In July the company produced 4,600 units using 10,220 pounds of the direct material and 2,200 direct labor-hours.  During the month, the company purchased 10,790 pounds of the direct material at a cost of $76,670  The actual direct labor cost was $38,246 and the actual variable overhead cost was $11,947.  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 material quantity variance for July is;

$1,000 U                             $1,140 F                     $7,140 U                       $1,000 F

3.  Epley Corporation makes a product with the following standard costs;

                                                       Standard Quantity or  Hours                                  Standard Price or Rate

Direct materials                            12.0 pounds                                                                  $11.5 per pound

Direct Labor                                    0.8 hours                                                                      $36.00 per hour

Variable overhead                          0.8 hours                                                                      $17.00 per hour

In July the company produced 3,470 units using 13,880 pounds of the direct material and 2,896 direct labor-hours.  During the month, the company purchased 14,640 pounds of the direct material at a cost of $35,100.  The actual direct labor cost was $103,840 and the actual variable overhead cost was $47,220.

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 labor rate variance for July is;

                                                                                   

$416 F                                $416 U                               $3,904 U                    3,904 F

Pardoe, Inc.  manfactures 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 followiing standards for one unit of product.

                                                                                              Standard Quantity                                       Standard Price or Rate                        Standard Cost

Direct materials                                                                    1.5 pounds                                                     $4.50 per pound                                   $6.75

Direct labor                                                                             0.6 hours                                                        $12 per hour                                         $7.2

Variable manufacturing overhead                                       0.6 hours                                                         $2.75 per hour                                     $1.65

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

.The company produced 4,200 units during the month.

.A total of 9,800 pounds of material were pruchased at a cost of $27,440

.There was no beginning inventory of materials on hand to start the month; at the end of the month, 1,960 poundsf of material remained in the warehouse.

.During March 2,720 direct labor-hours were worked at a rate of $12.50 per hour l

.Variable manufacturing overhead costs during March totaled $4,688.

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

The materials price variance for March is;

$16,660 U                     $14,140 F                          $14,140 U                   $16,660 F

5.  Oddo Corporation makes a product with the following standard costs:

                                                               Standard Quantity or Hours                   Standared Price or Rate                         Standard Cost Per Unit

Direct materials                                    4.0 ounces                                                       $8.40 per ounce                                         $33.60

Direct labor                                             0.9 hours                                                         $30.00 per hour                                        $27.00

Variable overhead                                    0.9 hours                                                         $8.00 per hour                                             $7.20