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# At Jacobson Company, indirect labor is a variable cost that varies with direct labor-hours. Last month's performance report showed that actual...

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40. At Jacobson Company, indirect labor is a variable cost that varies with direct labor-hours. Last month's performance report showed that actual indirect labor cost totaled \$5,780 for the month and that the associated spending variance was \$245 F. If 24,100 direct labor-hours were actually worked last month, then the flexible budget cost formula for indirect labor must be (per direct labor-hour): A. \$0.20 B. \$0.25 C. \$0.30 D. \$0.35 D 41. Fussner Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,610 patient-visits and the actual level of activity was 1,670 patient-visits. The cost formula for administrative expenses is \$3.30 per patient-visit plus \$17,900 per month. The actual administrative expense was \$24,600. In the clinic's flexible budget performance report for last month, the spending variance for administrative expenses was: A. \$1,387 U B. \$198 U C. \$69 U D. \$1,189 U D 44. Newsom Footwear Corporation's flexible budget cost formula for supplies, a variable cost, is \$2.61 per unit of output. The company's flexible budget performance report for last month showed a \$6,840 unfavorable spending variance for supplies. During that month, 17,100 units were produced. Budgeted activity for the month had been 16,700 units. The actual cost per unit for indirect materials must have been closest to: A. \$3.01 B. \$3.49 C. \$3.41 D. \$2.61 A 45. Hamner Corporation's flexible budget performance report for last month shows that actual indirect
materials cost, a variable cost, was \$45,240 and that the spending variance for indirect materials cost was \$3,480 unfavorable. During that month, the company worked 17,400 machine-hours. Budgeted activity for the month had been 17,000 machine-hours. The cost formula per machine-hour for indirect materials cost must have been closest to: A. \$2.46 B. \$2.87 C. \$2.40 D. \$2.80 C 46. Fudala Snow Removal's cost formula for its vehicle operating cost is \$1,480 per month plus \$308 per snow-day. For the month of March, the company planned for activity of 11 snow-days, but the actual level of activity was 16 snow-days. The actual vehicle operating cost for the month was \$6,130. The spending variance for vehicle operating cost in March would be closest to: A. \$1,262 U B. \$278 F C. \$278 U D. \$1,262 F B 47. Celius Midwifery's cost formula for its wages and salaries is \$2,410 per month plus \$292 per birth. For the month of March, the company planned for activity of 113 births, but the actual level of activity was 116 births. The actual wages and salaries for the month was \$35,340. The spending variance for wages and salaries in March would be closest to: A. \$942 F B. \$66 F C. \$66 U D. \$942 U A
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40. At Jacobson Company, indirect labor is a variable cost that varies with direct labor-hours.
Last month's performance report showed that actual indirect labor cost totaled \$5,780 for the
month...

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