Reference no: EM131751155
Managerial Accounting Questions -
Q1. Akey Hospital bases its budgets on patient-visits. The hospital's static budget for March appears below:
The total overhead cost at an activity level of 3,000 patient-visits per month should be:
A. $97,800
B. $92,100
C. $88,020
D. $92,640
Q2. Lynne Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $480 per month plus $91 per job plus $14 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in June to be 10 jobs and 79 meals, but the actual activity was 14 jobs and 77 meals. The actual cost for catering supplies in June was $2,970. The catering supplies in the flexible budget for June would be closest to:
A. $2,496
B. $2,970
C. $2,832
D. $3,494
Q3. Mondo Snow Removal's cost formula for its vehicle operating cost is $1,060 per month plus $429 per snow-day. For the month of January, the company planned for activity of 11 snowdays, but the actual level of activity was 13 snow-days. The actual vehicle operating cost for the month was $6,310. The activity variance for vehicle operating cost in January would be closest to:
A. $531 U
B. $531 F
C. $858 U
D. $858 F
Q4. Loggin Midwifery's cost formula for its wages and salaries is $2,380 per month plus $231 per birth. For the month of April, the company planned for activity of 100 births, but the actual level of activity was 102 births. The actual wages and salaries for the month was $25,510. The spending variance for wages and salaries in April would be closest to:
A. $30 F
B. $432 U
C. $30 U
D. $432 F
Q5. Shelby Boat Wash's cost formula for its cleaning equipment and supplies is $2,200 per month plus $34 per boat. For the month of September, the company planned for activity of 82 boats, but the actual level of activity was 32 boats. The actual cleaning equipment and supplies for the month was $3,340. The cleaning equipment and supplies in the planning budget for September would be closest to:
A. $3,288
B. $4,988
C. $3,340
D. $8,559