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Beakins Corporation produces a single product. The standard cost card for the product follows: Beakins Corporation produces a single product. The standard cost card for the product follows: During a recent period the company produced 1,200 units of product. Various costs associated with the production of these units are given below: The company records all variances at the earliest possible point in time. Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The materials price variance for the period is: A) $1,250 F B) $1,500 F C) $1,250 U D) $1,500 U During a recent period the company produced 1,200 units of product. Various costs associated with the production of these units are given below: Beakins Corporation produces a single product. The standard cost card for the product follows: During a recent period the company produced 1,200 units of product. Various costs associated with the production of these units are given below: The company records all variances at the earliest possible point in time. Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The materials price variance for the period is: A) $1,250 F B) $1,500 F C) $1,250 U D) $1,500 U The company records all variances at the earliest possible point in time. Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The materials price variance for the period is:


A) $1,250 F
B) $1,500 F
C) $1,250 U
D) $1,500 U

E) A) and D)
F) None of the above

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Larance Detailing's cost formula for its materials and supplies is $2,230 per month plus $1 per vehicle. For the month of November, the company planned for activity of 75 vehicles, but the actual level of activity was 25 vehicles. The actual materials and supplies for the month was $2,160. The materials and supplies in the flexible budget for November would be closest to:


A) $2,305
B) $768
C) $2,255
D) $2,160

E) B) and C)
F) A) and B)

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Stitt Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During November, the company budgeted for 5,900 units, but its actual level of activity was 5,880 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting: Stitt Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During November, the company budgeted for 5,900 units, but its actual level of activity was 5,880 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting: Actual results for November: The direct labor in the planning budget for November would be closest to: A) $35,264 B) $37,044 C) $35,384 D) $37,170 Actual results for November: Stitt Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During November, the company budgeted for 5,900 units, but its actual level of activity was 5,880 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting: Actual results for November: The direct labor in the planning budget for November would be closest to: A) $35,264 B) $37,044 C) $35,384 D) $37,170 The direct labor in the planning budget for November would be closest to:


A) $35,264
B) $37,044
C) $35,384
D) $37,170

E) A) and C)
F) B) and C)

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Galla Corporation makes a product with the following standard costs: Galla Corporation makes a product with the following standard costs: The company budgeted for production of 2,400 units in June, but actual production was 2,500 units. The company used 19,850 pounds of direct material and 980 direct labor-hours to produce this output. The company purchased 21,700 pounds of the direct material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 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 labor efficiency variance for June is: A) $384 F B) $400 U C) $400 F D) $384 U The company budgeted for production of 2,400 units in June, but actual production was 2,500 units. The company used 19,850 pounds of direct material and 980 direct labor-hours to produce this output. The company purchased 21,700 pounds of the direct material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 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 labor efficiency variance for June is:


A) $384 F
B) $400 U
C) $400 F
D) $384 U

E) C) and D)
F) All of the above

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Ordway 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 June, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,070 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Ordway 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 June, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,070 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Actual results for June: The wages and salaries in the planning budget for June would be closest to: A) $17,480 B) $17,116 C) $17,364 D) $17,276 Actual results for June: Ordway 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 June, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,070 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Actual results for June: The wages and salaries in the planning budget for June would be closest to: A) $17,480 B) $17,116 C) $17,364 D) $17,276 The wages and salaries in the planning budget for June would be closest to:


A) $17,480
B) $17,116
C) $17,364
D) $17,276

E) A) and C)
F) B) and D)

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Halm Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for August was based on 3,000 meals. The diner's director has provided the following cost data to use in the budget: groceries, $3.85 per meal; kitchen operations, $4,600 per month plus $1.15 per meal; administrative expenses, $3,800 per month plus $0.85 per meal; and fundraising expenses, $1,600 per month. The director has also provided the diner's statement of actual expenses for the month: Halm Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for August was based on 3,000 meals. The diner's director has provided the following cost data to use in the budget: groceries, $3.85 per meal; kitchen operations, $4,600 per month plus $1.15 per meal; administrative expenses, $3,800 per month plus $0.85 per meal; and fundraising expenses, $1,600 per month. The director has also provided the diner's statement of actual expenses for the month: Required: Prepare a report showing the revenue and spending variances for each of the expenses and for total expenses for August. Label each variance as favorable (F) or unfavorable (U). Required: Prepare a report showing the revenue and spending variances for each of the expenses and for total expenses for August. Label each variance as favorable (F) or unfavorable (U).

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The following labor standards have been established for a particular product: The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor efficiency variance for the month? A) $19,017 F B) $19,017 U C) $16,029 F D) $16,577 F The following data pertain to operations concerning the product for the last month: The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor efficiency variance for the month? A) $19,017 F B) $19,017 U C) $16,029 F D) $16,577 F What is the labor efficiency variance for the month?


A) $19,017 F
B) $19,017 U
C) $16,029 F
D) $16,577 F

E) None of the above
F) A) and C)

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Biery Corporation makes a product with the following standard costs: Biery Corporation makes a product with the following standard costs: The company produced 4,100 units in April using 5,380 liters of direct material and 2,610 direct labor-hours. During the month, the company purchased 6,000 liters of the direct material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 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 April is: A) $290 F B) $290 U C) $300 F D) $300 U The company produced 4,100 units in April using 5,380 liters of direct material and 2,610 direct labor-hours. During the month, the company purchased 6,000 liters of the direct material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 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 April is:


A) $290 F
B) $290 U
C) $300 F
D) $300 U

E) None of the above
F) A) and C)

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Eberley Corporation's cost formula for its manufacturing overhead is $25,700 per month plus $10 per machine-hour. For the month of July, the company planned for activity of 5,900 machine-hours, but the actual level of activity was 5,920 machine-hours. The actual manufacturing overhead for the month was $86,800. The spending variance for manufacturing overhead in July would be closest to:


A) $2,100 U
B) $1,900 F
C) $1,900 U
D) $2,100 F

E) None of the above
F) A) and D)

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Vath Corporation, which makes landing gears, has provided the following data for a recent month: Vath Corporation, which makes landing gears, has provided the following data for a recent month: Required: Determine the rate and efficiency variances for the variable overhead item supplies and indicate whether those variables are favorable or unfavorable. Show your work! Required: Determine the rate and efficiency variances for the variable overhead item supplies and indicate whether those variables are favorable or unfavorable. Show your work!

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Variable overhead rate variance = (AH × ...

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Hottle Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting: Hottle Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting: In February, the company budgeted for 342 guests and 146 jeeps. The company's income statement showing the actual results for the month appears below: Required: Prepare a report showing the company's revenue and spending variances for February. Label each variance as favorable (F) or unfavorable (U). In February, the company budgeted for 342 guests and 146 jeeps. The company's income statement showing the actual results for the month appears below: Hottle Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting: In February, the company budgeted for 342 guests and 146 jeeps. The company's income statement showing the actual results for the month appears below: Required: Prepare a report showing the company's revenue and spending variances for February. Label each variance as favorable (F) or unfavorable (U). Required: Prepare a report showing the company's revenue and spending variances for February. Label each variance as favorable (F) or unfavorable (U).

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Wesolick Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,870 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August: Data used in budgeting: Wesolick Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,870 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August: Data used in budgeting: Actual results for August: The administrative expenses in the planning budget for August would be closest to: A) $6,974 B) $6,880 C) $6,874 D) $7,047 Actual results for August: Wesolick Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,870 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August: Data used in budgeting: Actual results for August: The administrative expenses in the planning budget for August would be closest to: A) $6,974 B) $6,880 C) $6,874 D) $7,047 The administrative expenses in the planning budget for August would be closest to:


A) $6,974
B) $6,880
C) $6,874
D) $7,047

E) A) and D)
F) A) and C)

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Ortman Corporation makes a product with the following standard costs: Ortman Corporation makes a product with the following standard costs: The company reported the following results concerning this product in May. 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 variable overhead efficiency variance for May is: A) $27 F B) $27 U C) $30 U D) $30 F The company reported the following results concerning this product in May. Ortman Corporation makes a product with the following standard costs: The company reported the following results concerning this product in May. 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 variable overhead efficiency variance for May is: A) $27 F B) $27 U C) $30 U D) $30 F 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 variable overhead efficiency variance for May is:


A) $27 F
B) $27 U
C) $30 U
D) $30 F

E) C) and D)
F) A) and B)

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Oddo Corporation makes a product with the following standard costs: Oddo Corporation makes a product with the following standard costs: The company reported the following results concerning this product in December. 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 December is: A) $1,540 U B) $1,496 F C) $1,540 F D) $1,496 U The company reported the following results concerning this product in December. Oddo Corporation makes a product with the following standard costs: The company reported the following results concerning this product in December. 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 December is: A) $1,540 U B) $1,496 F C) $1,540 F D) $1,496 U 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 December is:


A) $1,540 U
B) $1,496 F
C) $1,540 F
D) $1,496 U

E) None of the above
F) A) and B)

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The following data have been provided by Mathews Corporation: The following data have been provided by Mathews Corporation: Lubricants and supplies are both elements of variable manufacturing overhead. The variable overhead rate variance for lubricants is closest to: A) $1,376 F B) $516 U C) $860 F D) $1,376 U Lubricants and supplies are both elements of variable manufacturing overhead. The variable overhead rate variance for lubricants is closest to:


A) $1,376 F
B) $516 U
C) $860 F
D) $1,376 U

E) A) and B)
F) C) and D)

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Satoe Corporation uses customers served as its measure of activity. During April, the company budgeted for 25,000 customers, but actually served 23,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April: Data used in budgeting: Satoe Corporation uses customers served as its measure of activity. During April, the company budgeted for 25,000 customers, but actually served 23,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April: Data used in budgeting: Actual results for April: Required: Prepare a report showing the company's revenue and spending variances for April. Label each variance as favorable (F) or unfavorable (U). Actual results for April: Satoe Corporation uses customers served as its measure of activity. During April, the company budgeted for 25,000 customers, but actually served 23,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April: Data used in budgeting: Actual results for April: Required: Prepare a report showing the company's revenue and spending variances for April. Label each variance as favorable (F) or unfavorable (U). Required: Prepare a report showing the company's revenue and spending variances for April. Label each variance as favorable (F) or unfavorable (U).

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Galla Corporation makes a product with the following standard costs: Galla Corporation makes a product with the following standard costs: The company budgeted for production of 2,400 units in June, but actual production was 2,500 units. The company used 19,850 pounds of direct material and 980 direct labor-hours to produce this output. The company purchased 21,700 pounds of the direct material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 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 labor rate variance for June is: A) $800 U B) $784 U C) $800 F D) $784 F The company budgeted for production of 2,400 units in June, but actual production was 2,500 units. The company used 19,850 pounds of direct material and 980 direct labor-hours to produce this output. The company purchased 21,700 pounds of the direct material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 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 labor rate variance for June is:


A) $800 U
B) $784 U
C) $800 F
D) $784 F

E) A) and B)
F) C) and D)

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Bobe Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $44,580 per month plus $2,390 per flight plus $8 per passenger. The company expected its activity in May to be 68 flights and 211 passengers, but the actual activity was 71 flights and 210 passengers. The actual cost for plane operating costs in May was $215,140. The plane operating costs in the flexible budget for May would be closest to:


A) $215,950
B) $208,788
C) $215,140
D) $217,999

E) C) and D)
F) A) and B)

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Beakins Corporation produces a single product. The standard cost card for the product follows: Beakins Corporation produces a single product. The standard cost card for the product follows: During a recent period the company produced 1,200 units of product. Various costs associated with the production of these units are given below: The company records all variances at the earliest possible point in time. Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The materials quantity variance for the period is: A) $950 U B) $5,000 F C) $1,000 U D) $6,000 F During a recent period the company produced 1,200 units of product. Various costs associated with the production of these units are given below: Beakins Corporation produces a single product. The standard cost card for the product follows: During a recent period the company produced 1,200 units of product. Various costs associated with the production of these units are given below: The company records all variances at the earliest possible point in time. Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The materials quantity variance for the period is: A) $950 U B) $5,000 F C) $1,000 U D) $6,000 F The company records all variances at the earliest possible point in time. Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The materials quantity variance for the period is:


A) $950 U
B) $5,000 F
C) $1,000 U
D) $6,000 F

E) All of the above
F) None of the above

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Hettinger Hospital bases its budgets on patient-visits. The hospital's static budget for March appears below: Hettinger Hospital bases its budgets on patient-visits. The hospital's static budget for March appears below: The total fixed cost at the activity level of 7,700 patient-visits per month should be: A) $123,970 B) $187,680 C) $212,520 D) $109,480 The total fixed cost at the activity level of 7,700 patient-visits per month should be:


A) $123,970
B) $187,680
C) $212,520
D) $109,480

E) B) and D)
F) A) and B)

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