It formalizes a managers planning efforts 7 the

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It formalizes a manager's planning efforts. 7. The standard cost per unit is computed by multiplying the standard quantity or hours by the standard price or rate. True False 8. Ingrum Framing's cost formula for its supplies cost is $1,200 per month plus $20 per frame. For the month of June, the company planned for activity of 618 frames, but the actual level of activity was 610 frames. The actual supplies cost for the month was $13,850. The spending variance for supplies cost in June would be closest to: $290 U $450 U $450 F $290 F 9. Cadavieco Detailing's cost formula for its materials and supplies is $1,950 per month plus $14 per vehicle. For the month of November, the company planned for activity of 90 vehicles, but the actual level of activity was 55 vehicles. The actual materials and supplies for the month was $2,490. The materials and supplies in the planning budget for November would be closest to: $3,210 $2,720 $4,801 $2,490 10. Gourley Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 4,150 client-visits, but its actual level of activity was 4,080 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:
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Fixed element per month Variable element per client-visit Revenue $40.90 Personnel expenses $36,900 $12.10 Medical supplies 2,900 8.90 Occupancy expenses 9,900 2.90 Administrative expenses 6,900 0.2 Total expenses $56,600 $24.10 The activity variance for administrative expenses in August would be closest to: $74 F $74 U $14 U $14 F 11. Gourley Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 3,750 client-visits, but its actual level of activity was 3,700 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Fixed element per month Variable element per client-visit Revenue $40.10 Personnel expenses $36,100 $11.30 Medical supplies 2,100 8.10 Occupancy expenses 9,100 2.10 Administrative expenses 6,100 .30 Total expenses $53,400 $21.80 The activity variance for net operating income in August would be closest to: $165 F $915 U $915 F $165 U 12. Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 6,800 units, but its actual level of activity was 6,750 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting:
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Fixed element per month Variable element per tenant-day Revenue $34.30 Direct labor $0 $6.30 Direct materials 0 13.90 Manufacturing overhead 38,000 1.80 Selling and administrative expenses 25,600 0.30 Total expenses $63,600 $22.30 Actual results for October: Revenue $232,600 Direct labor $41,890 Direct materials $94,925 Manufacturing overhead $44,000 Selling and administrative expenses $30,480 The revenue variance in October would be closest to: $640 F $1,075 F $640 U $1,075 U 13. Karmazyn Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below: Budgeted number of patient-visits 9,200 Budgeted variable costs: Supplies (@ $9.30 per patient-visit) $ 85,560 Laundry (@ $9.00 per patient-visit) 82,800 Total variable cost 168,360 Budgeted fixed costs: Wages and salaries 99,720 Occupancy costs 107,720 Total fixed cost 207,440
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