#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