|
$65 U
2.Caballes Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 4,000 client-visits, but its actual level of activity was 3,970 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November:
|
Fixed element per month |
Variable element per client-visit |
| Revenue |
? |
$55.30 |
|
|
|
| Personnel expenses |
$27,550 |
$14.00 |
| Medical supplies |
1,175 |
5.80 |
| Occupancy expenses |
6,000 |
1.50 |
| Administrative expenses |
4,000
|
0.30
|
| Total expenses |
$38,725
|
$21.60
|
|
Actual results for November:
|
| Revenue |
$221,129 |
| Personnel expenses |
$25,579 |
| Medical supplies |
$24,598 |
| Occupancy expenses |
$12,352 |
| Administrative expenses |
$8,931 |
| The occupancy expenses in the flexible budget for November would be closest to: |
|
$12,352 |
|
$6,352 |
|
$12,000 |
|
$11,955
3. The Litton Company has established standards as follows:
|
Direct material: 5 pounds per unit @ $4.30 per pound = $21.50 per unit
|
|
Direct labor: 2 hours per unit @ $6 per hour = $12 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.
| Units produced |
900 |
units |
| Direct material used |
4,670 |
pounds |
| Direct material purchased (5,670) pounds |
$32,886 |
|
| Direct labor cost (1,700 hours) |
10,880 |
|
| Variable manufacturing overhead cost incurred |
$8,810 |
|
The company applies variable manufacturing overhead to products on the basis of standard direct labor-hours.
|
The materials quantity variance is:
|
|
$731 U |
|
$4,670 U |
|
$170 U |
|
$170 F
4.
The following materials standards have been established for a particular product:
| Standard quantity per unit of output |
4.8 feet |
| Standard price |
$19.60 per feet |
|
The following data pertain to operations concerning the product for the last month:
|
| Actual materials purchased |
1,120 feet |
| Actual cost of materials purchased |
$21,280 |
| Actual materials used in production |
1,020 feet |
| Actual output |
120 units |
|
What is the materials price variance for the month?
|
|
$672 F |
|
$612 U |
|
$672 U |
|
$612 F |
5. A company's current net operating income is $47,600 and its average operating assets are $136,000. The company's required rate of return is 16%. A new project being considered would require an investment of $43,000 and would generate annual net operating income of $14,620. What is the residual income of the new project?
|
$430 |
|
$4,600 |
|
($430) |
|
$7,740 |
6. In August, the Universal Solutions Division of Jugan Corporation had average operating assets of $860,000 and net operating income of $96,500. The company uses residual income, with a minimum required rate of return of 12%, to evaluate the performance of its divisions. What was the Universal Solutions Division's residual income in August?
|
$6,700 |
|
-$6,700 |
|
-$11,580 |
|
$11,580 |
7. Garnick Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:
|
Hours |
| Move time |
5.4 |
| Wait time |
30.0 |
| Queue time |
7.1 |
| Process time |
0.8 |
| Inspection time |
1.2 |
The delivery cycle time was:
|
5.4 hours |
|
12.5 hours |
|
42.5 hours |
|
44.5 hours |
8. Hoster Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:
|
Hours |
| Move time |
4.2 |
| Wait time |
14.9 |
| Queue time |
4.6 |
| Process time |
2.5 |
| Inspection time |
1.0 |
The throughput time was:
|
12.3 hours |
|
19.5 hours |
|
7.7 hours |
|
27.2 hours |
9. Aide Industries is a division of a major corporation. Data concerning the most recent year appears below:
| Sales |
$18,100,000 |
| Net operating income |
$926,000 |
| Average operating assets |
$4,700,000 |
The division's margin is closest to:
10.Aide Industries is a division of a major corporation. Data concerning the most recent year appears below:
| Sales |
$19,400,000 |
| Net operating income |
$1,030,000 |
| Average operating assets |
$6,000,000 |
The division's turnover is closest to:
|
|
|