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Gourley Clinic uses client visits as its measure of activity. During August, the clinic budgeted for 3,500 client visits, but its actual level of activity was 3,410 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 | ” | $39.60 |
| Personnel expenses | $35,600 | $10.80 |
| Medical supplies | 1,600 | 7.60 |
| Occupancy expenses | 8,600 | 1.60 |
| Administrative expenses | 5,600 | 0.7 |
| Total expenses |
$51,400 |
$20.70 |
The activity variance for administrative expenses in August would be closest to:
| $63 F | |
| $123 F | |
| $63 U | |
| $123 U |
| Hurren Corporation makes a product with the following standard costs: |
| Inputs | Standard Quantity or Hours | Standard Price or Rate | Standard Cost PerUnit |
| Direct materials | 5.1 grams | $5.00 per gram | $25.50 |
| Direct labor | 1.4 hours | $16.00 per hour | $22.40 |
| Variable overhead | 1.4 hours | $5.00 per hour | $7.00 |
| The company reported the following results concerning this product in June. |
| Originallybudgetedoutput | 6,000 | units |
| Actual output | 5,900 | units |
| Raw materials used in production | 28,450 | grams |
| Actual direct labor hours | 5,200 | hours |
| Purchases of raw materials | 32,500 | grams |
| Actual price of raw materials purchased | $5.10 | per gram |
| Actual direct labor rate | $16.90 | per hour |
| Actual variable overhead rate | $4.70 | per hour |
|
The company applies variable overhead on the basis of direct labor hours. The direct materials price variance is computed when the materials are purchased. |
| The materials quantity variance for June is: |
rev: 03_02_2012
| $8,364 F | |
| $8,364 U | |
| $8,200 U | |
| $8,200 F |