#9
Lenci Corporation manufactures and sells a single product. Thecompany uses units as the measure of activity in its budgets andperformance reports. During May, the company budgeted for 5,100units, but its actual level of activity was 5,050 units. Thecompany has provided the following data concerning the formulasused in its budgeting and its actual results for May:
Data used in budgeting:
Fixed element permonth Variable element per unit Revenue - $ 39.60 Direct labor $ 0 $ 5.50 Direct materials 0 15.70 Manufacturing overhead 41,500 1.30 Selling and administrativeexpenses 22,700 0.20 Total expenses $ 64,200 $ 22.70
Actual results for May:
Revenue $ 197,810 Direct labor $ 28,565 Direct materials $ 80,265 Manufacturing overhead $ 47,905 Selling and administrativeexpenses $ 22,680
The overall revenue and spending variance (i.e., the variancefor net operating income in the revenue and spending variancecolumn on the flexible budget performance report) for May would beclosest to:
Garrison 16e Rechecks 2018-06-07
$2,750 F
$3,595 F
$3,595 U
$2,750 U
#10
Neubert Corporation manufactures and sells a single product. Thecompany uses units as the measure of activity in its budgets andperformance reports. During December, the company budgeted for5,300 units, but its actual level of activity was 5,340 units. Thecompany has provided the following data concerning the formulasused in its budgeting and its actual results for December:
Data used in budgeting:
Fixed Element perMonth Variable element per unit Revenue - $ 30.00 Direct labor $ 0 $ 3.50 Direct materials 0 10.40 Manufacturing overhead 33,300 1.50 Selling and administrativeexpenses 25,000 0.50 Total expenses $ 58,300 $ 15.90
Actual results for December:
Revenue $ 156,340 Direct labor $ 17,980 Direct materials $ 56,566 Manufacturing overhead $ 41,040 Selling and administrativeexpenses $ 28,870
The direct labor in the planning budget for December would beclosest to:
Garrison 16e Rechecks 2018-06-07
$18,690
$18,550
$17,845
$17,980
#16
Pippin Inc. has provided the following data concerning one ofthe products in its standard cost system. Variable manufacturingoverhead is applied to products on the basis of directlabor-hours.
Inputs Standard Quantity orHours per Unit of Output Standard Price orRate Direct materials 5.0 grams $ 7.00 per gram Direct labor 0.30 hours $ 21.30 per hour Variable manufacturingoverhead 0.30 hours $ 9.60 per hour
The company has reported the following actual results for theproduct for June:
Actual output 8,500 units Raw materials purchased 48,100 grams Actual price of rawmaterials $ 7.70 per gram Raw materials used inproduction 42,490 grams Actual direct labor-hours 2,300 hours Actual direct labor rate $ 21.70 per hour Actual variable overheadrate $ 9.80 per hour
The labor rate variance for the month is closest to:
$1,020 U
$920 U
$1,020 F
$920 F
#9
Lenci Corporation manufactures and sells a single product. Thecompany uses units as the measure of activity in its budgets andperformance reports. During May, the company budgeted for 5,100units, but its actual level of activity was 5,050 units. Thecompany has provided the following data concerning the formulasused in its budgeting and its actual results for May:
Data used in budgeting:
| Fixed element permonth | Variable element per unit | ||||
| Revenue | - | $ | 39.60 | ||
| Direct labor | $ | 0 | $ | 5.50 | |
| Direct materials | 0 | 15.70 | |||
| Manufacturing overhead | 41,500 | 1.30 | |||
| Selling and administrativeexpenses | 22,700 | 0.20 | |||
| Total expenses | $ | 64,200 | $ | 22.70 | |
Actual results for May:
| Revenue | $ | 197,810 |
| Direct labor | $ | 28,565 |
| Direct materials | $ | 80,265 |
| Manufacturing overhead | $ | 47,905 |
| Selling and administrativeexpenses | $ | 22,680 |
The overall revenue and spending variance (i.e., the variancefor net operating income in the revenue and spending variancecolumn on the flexible budget performance report) for May would beclosest to:
Garrison 16e Rechecks 2018-06-07
$2,750 F
$3,595 F
$3,595 U
$2,750 U
#10
Neubert Corporation manufactures and sells a single product. Thecompany uses units as the measure of activity in its budgets andperformance reports. During December, the company budgeted for5,300 units, but its actual level of activity was 5,340 units. Thecompany has provided the following data concerning the formulasused in its budgeting and its actual results for December:
Data used in budgeting:
| Fixed Element perMonth | Variable element per unit | ||||
| Revenue | - | $ | 30.00 | ||
| Direct labor | $ | 0 | $ | 3.50 | |
| Direct materials | 0 | 10.40 | |||
| Manufacturing overhead | 33,300 | 1.50 | |||
| Selling and administrativeexpenses | 25,000 | 0.50 | |||
| Total expenses | $ | 58,300 | $ | 15.90 | |
Actual results for December:
| Revenue | $ | 156,340 |
| Direct labor | $ | 17,980 |
| Direct materials | $ | 56,566 |
| Manufacturing overhead | $ | 41,040 |
| Selling and administrativeexpenses | $ | 28,870 |
The direct labor in the planning budget for December would beclosest to:
Garrison 16e Rechecks 2018-06-07
$18,690
$18,550
$17,845
$17,980
#16
Pippin Inc. has provided the following data concerning one ofthe products in its standard cost system. Variable manufacturingoverhead is applied to products on the basis of directlabor-hours.
| Inputs | Standard Quantity orHours per Unit of Output | Standard Price orRate | |||||||||
| Direct materials | 5.0 | grams | $ | 7.00 | per gram | ||||||
| Direct labor | 0.30 | hours | $ | 21.30 | per hour | ||||||
| Variable manufacturingoverhead | 0.30 | hours | $ | 9.60 | per hour | ||||||
The company has reported the following actual results for theproduct for June:
| Actual output | 8,500 | units | |
| Raw materials purchased | 48,100 | grams | |
| Actual price of rawmaterials | $ | 7.70 | per gram |
| Raw materials used inproduction | 42,490 | grams | |
| Actual direct labor-hours | 2,300 | hours | |
| Actual direct labor rate | $ | 21.70 | per hour |
| Actual variable overheadrate | $ | 9.80 | per hour |
The labor rate variance for the month is closest to:
$1,020 U
$920 U
$1,020 F
$920 F
Related questions
Galante Kennel uses tenant-days as its measure of activity; ananimal housed in the kennel for one day is counted as onetenant-day. During May, Kennel budgeted for 4,500 tenant-days, butits actual level of activity was 4,480 tenant-days. Kennel hasprovided the following data concerning the formulas used in itsbudgeting and its actual results for May: |
Data used in budgeting:
| Fixedelement per month | Variableelement per tenant-day | |
| Revenue | รขยย | $31.00 |
| Wages andsalaries | $3,500 | $7.00 |
| Food andsupplies | 900 | 11.80 |
| Facilityexpenses | 8,500 | 4.00 |
| Administrativeexpenses | 8,300 | 0.40 |
| Total expenses | $21,200 | $23.20 |
Actual results for May:
| Revenue | $108,280 |
| Wages andsalaries | $23,550 |
| Food andsupplies | $36,795 |
| Facilityexpenses | $19,300 |
| Administrativeexpenses | $9,150 |
The net operating income in the planning budget for May would beclosest to:
$13,900
$19,391
$19,485
$13,744
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
| Landram Corporation makes aproduct with the following standard costs: |
| StandardQuantity or Hours | Standard Priceor Rate | |
| Directmaterials | 2.0liters | $7.00 perliters |
| Direct labor | 1.5hours | $15.00 perhour |
| Variableoverhead | 1.5hours | $3.00 perhour |
The company produced 4,500 units in April using 10,210 liters ofdirect material and 2,190 direct labor-hours. During the month, thecompany purchased 10,780 liters of the direct material at $7.20.per liter. The actual direct labor rate was $15.60 per hour and theactual variable overhead rate was $2.90 per hour. |
| The company applies variable overhead on the basis of directlabor-hours. The direct materials purchases variance is computedwhen the materials are purchased. |
| The materials quantity variancefor April is: |
$8,470 U
$8,712 U
$8,712 F
$8,470 F
