ACC week 6 questions

$400 U

$400 F

$600 F

$600 U

2.

$240 U

$220 U

$220 F

$240 F

3. The following labor standards have been established for a particular product:

The following data pertain to operations concerning the product for the last month:

Required:

a. What is the labor rate variance for the month?
b. What is the labor efficiency variance for the month?4

4 The Litton Company has established standards as follows:

Direct material: 3 pounds per unit @ $4 per pound = $12 per unit
Direct labor: 2 hours per unit @ $8 per hour = $16 per unit
Variable manufacturing overhead: 2 hours per unit @ $5 per hour = $10 per unit

Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased.

$480 F

$480 U

$440 F

$440 U

5 The Porter Company has a standard cost system. In July the company purchased and used 22,500 pounds of direct material at an actual cost of $53,000; the materials quantity variance was $1,875 Unfavorable; and the standard quantity of materials allowed for July production was 21,750 pounds. The materials price variance for July was:

$157,530

$209,700

$207,370

$159,300

7 Farver Air uses two measures of activity, flights and passengers, in the cost formulas in its flexible budgets. The cost formula for plane operating costs is $44,420 per month plus $2,008 per flight plus $1 per passenger. The company expected its activity in May to be 80 flights and 281 passengers, but the actual activity was 81 flights and 277 passengers. The actual cost for plane operating costs in May was $199,650. The spending variance for plane operating costs in May would be closest to:

$800 U

$4,000 U

$760 U

$760 F

9The following standards for variable manufacturing overhead have been established for a company that makes only one product:

$9,219 U

$10,179 U

$9,867 U

$648 U

$800 F

$800 U

$840 F

$840 U

Question 11

Lotson Corporation bases its budgets on machine-hours. The company's static planning budget for May appears below:

Actual results for the month were:

The spending variance for power costs for the month should be:

2 points

Question 12

The following labor standards have been established for a particular product:

Standard labor hours per unit of output 4.0 hours

Standard labor rate 12.30 hour

The following data pertain to operations concerning the product for the last month

Actual hours worked 7100 hours

Actual total labor cost $89,105

Actual output 1,500 units

What is the labor efficiency variance for the month?

2 points

Question 13

Edington Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,800 client-visits, but its actual level of activity was 2,850 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for September:

The personnel expenses in the planning budget for September would be closest to:

2 points

Question 14

Lotson Corporation bases its budgets on machine-hours. The company's static planning budget for May appears below:

Actual results for the month

The spending variance for supplies costs for the month should be:

2 points

Question 15

Lotson Corporation bases its budgets on machine-hours. The company's static planning budget for May appears below

Actual results for the month

The spending variance for equipment depreciation for the month should be:

2 points

Question 16

The Litton Company has established standards as follows:

Direct material: 3 pounds per unit @ $4 per pound = $12 per unit
Direct labor: 2 hours per unit @ $8 per hour = $16 per unit
Variable manufacturing overhead: 2 hours per unit @ $5 per hour = $10 per unit

Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased.

The company applies variable manufacturing overhead to products on the basis of standard direct labor-hours.

The variable overhead efficiency variance is:

2 points

Question 17

Karmazyn Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below:

The total cost at the activity level of 9,200 patient-visits per month should be:

2 points

Question 18

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:

Please put the following on the provided excel sheet

The planning budget for march was based on producing and selling 25000 units However during march the company actually produced and sold 30,000 units and incurred the following cost.

a. Purched 160,000 pounds of raw materials at a coust of $7.50 per pound. All of this material was used n production.

b. Direct- laborers worked 55,000 hours at a rate of $15.00 per hour

c. Total variable manufacturing overhead for the month was $280,500

d. Total advertising, sales, salaries and commission, and shipping expensed were $210,000, $455,000, and $115,000 respectively.

1. What raw materials cost would be included in the companys flexile budget for march?

2. What is the material quantity variance for March?

3. What is the materials price variance for March

4. If Preble has purchased 170,00 pounds of materials at $7.50 per pound and used 160,000 in production, what would be the materials quantity variance for March?

5. If Preble has purchased 170,00 pounds of materials at $7.50 per pound and used 160,000 in production, what would be the materials price variance for March?

6. What direct labor cost would be the materials price variance for March?

7. What is the direct labor efficiency variance for March?

8. What is the direct labor rate variance for March?

9. What variable manufacturing overhead cost would be included in the companys flexible budget for March

10. What is the variable overhead efficiency variance for March?

11. What is the variable overhead rate variance for March?

12. What amounts of advertising, sales salaries and commissions, and shipping expensed would be included in the companys flexible budget for March?

13. What is the spending variance related to advertising?

14. What is the spending variance related to sales salaries and commissions?

15. What is the spending variance related to shipping expenses?