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W4 A3 14 -

14.

Sharifi Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below: Budgeted number of patient visits 8500

Budgeted variable overhead cost:

Supplies (@$4.70 per patient visit) $39,950

Laundry (@$7.80 per patient Visit) 66,300 (+)

Total variable overhead cost 106,250 (=)

Budgeted fixed overhead costs: Wages and salaries 50,150

Occupancy costs 84,150 (+)

Total fixed overhead cost 134,300 (=)

Total budgeted overhead cost 240,550 (=) The total overhead cost at an activity level of 9,200 patient-visits per month should be: A.$260,360 B.$250,070 C.$249,300 D.$240,550

15.

Alapai Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: Budgeted level of activity 7000 MHs

Actual level of activity 7200 MHs

Cost formula for variable manufacturing overhead cost $9.40 per MH

Budgeted fixed manufacturing overhead cost $40,000

Actual total variable manufacturing overhead $66,960

Actual total fixed manufacturing overhead $37,000 What was the total of the variable overhead spending and fixed overhead budget variances for the month? A.$3720 favorable B.$2280 unfavorable C.$1840 favorable D.$1880 unfavorable

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