Chapter 10 Practice Problems unanswered

Chapter 10 Practice Problems unanswered - Chapter 10...

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Chapter 10 Practice Problems (blank) 1. Enriques Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During February, the company budgeted for 5,600 units, but its actual level of activity was 5,580 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting: Fixed element per month Variable element per unit Revenue 0 $46.1 Direct labor $0 $6.2 Direct materials 0 20.1 Manufacturing overhead 41,500 1 Selling and administrative expenses 27,400 0.6 Total expenses $68,900 $27.9 Actual results for February: Revenue $219,000 Direct labor $29,000 Direct materials $93,300 Manufacturing overhead $43,100 Selling and administrative expenses $28,930 The activity variance for direct labor in February would be closest to: $5,588 U $5,588 F $124 U $124 F 2. Cotty Clinic uses client-visits as its measure of activity. During March, the clinic budgeted for 3,100 client-visits, but its actual level of activity was 3,080 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Fixed element per month Variable element per client-visit Revenue 0 $36
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Personnel expenses $28,400 $9.9 Medical supplies 1,420 6.9 Occupancy expenses 8,100 2.8 Administrative expenses 5,050 0.7 Total expenses $42,970 $20.3 Actual results for March: Revenue $114,450 Personnel expenses $55,800 Medical supplies $19,600 Occupancy expenses $12,960 Administrative expenses $6,820 The spending variance for medical supplies in March would be closest to: $3,072 U $3,072 F $3,210 U $3,210 F 3. Olivier Framing's cost formula for its supplies cost is $2,970 per month plus $17 per frame. For the month of January, the company planned for activity of 545 frames, but the actual level of activity was 546 frames. The actual supplies cost for the month was $11,912. The spending variance for supplies cost in January would be closest to: $323 F $323 U $340 U $340 F
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