Hettinger Hospital bases its budgets on patient-visits. The hospital\'s static b
ID: 2425061 • Letter: H
Question
Hettinger Hospital bases its budgets on patient-visits. The hospital's static budget for March appears below: Budgeted number of patient-visits 9,400 Budgeted variable costs: Supplies (@ $9.50 per patient-visit) $ 89,300 Laundry (@ $9.20 per patient-visit) 86,480 Total variable cost 175,780 Budgeted fixed costs: Wages and salaries 99,740 Occupancy costs 107,740 Total fixed cost 207,480 Total cost $383,260 The total variable cost at the activity level of 9,500 patient-visits per month should be: $175,780 $209,810 $177,650 $207,480
In July the company produced 4,700 units using 10,280 pounds of the direct material and 2,260 direct labor-hours. During the month, the company purchased 10,850 pounds of the direct material at a cost of $76,730. The actual direct labor cost was $38,238 and the actual variable overhead cost was $11,939.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
rev: 11_06_2015_QC_CS-32670
$640 U
$780 F
$6,160 U
$640 F
Epley Corporation makes a product with the following standard costs:Explanation / Answer
Question 1:
The Variable Cost at the activity level of 9500 units = 175780/9400*9500 = $ 177650.
Question 2:
The Direct material Qty Varience = ( Standard Qty for actual output - actual qty consumed) * standard price = [(4700*2)- ( 10280)]* 7 = $ 6160 U.