9. Oaks Company maintains a cafeteria for its employees. For June, variable food costs were budgeted at $48 per employee, based on a budgeted level of 1,000 employees in operating departments. During the month, an average of 1,100 employees worked in operating departments. The cafeteria's total food costs for the month came to $57,750. How much food cost should be charged to the operating departments at the end of the month for performance evaluation purposes? a. $57,750 b. $52,500 c. $48,000 d. $52,800 e. None of the above
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- Misty McDougall is the manager of the Adams Bagel Shop. The corporate office had budgeted her store to sell 2,600 ham sandwiches during the week beginning July 17. Each sandwich was expected to contain 7 ounces of ham. During the week of July 17, the store actually sold 3,200 sandwiches and used 22,900 ounces of ham. The standard cost of ham is $0.17 per ounce. The variance report from company headquarters showed an unfavorable materials usage variance of $799. Ms. McDougall thought the variance was too high, but she had no accounting background and did not know how to register a proper objection. Required a. Determine the material usage variance. Note: Indicate the effect of the variance by selecting favorable (F) or unfavorable (U), and select "None" if there is no effect (i.e., zero variance). Material usage variance Prey 1 of 5 MacRock Next >The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers that it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses, Data concerning the company's cost formulas appear below Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Month For example, administrative expenses should be $3,600 per month plus $41 per course plus 54 per student. The company's sales should average $890 per student. The actual operating results for September appear below: Cost per Cost per Course Student $2.930 $290 $1,200 $4,600 $2,000 $3,800 $ 41 $ 4 Revenue Expenses $ 90 Actual $53.170 $ 11,000 $18,120 $ 1.970 $ 4,600 Required: 1.…Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35,500 customers, but actually served 31,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.00q Wages and salaries: $33,700 + $1.25q Supplies: $0.65q Insurance: $10,900 Miscellaneous expenses: $6,900 + $0.35q The company reported the following actual results for February: $129,800 $ 68,500 $ 14,900 $ 10,900 $ 20,200 Revenue Wages and salaries Supplies Insurance Miscellaneous expense Required: Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
- Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 5,900 units, but its actual level of activity was 5,860 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Fixed element per month Variable element per unit Revenue $ 0 $ 29.30 Direct labor $ 0 $ 3.90 Direct materials 0 10.00 Manufacturing overhead 39,000 1.20 Selling and administrative expenses 24,600 0.40 Total expenses $ 63,600 $ 15.50 Actual results for June: Revenue $ 176,358 Direct labor $ 22,310 Direct materials $ 56,330 Manufacturing overhead $ 45,917 Selling and administrative expenses $ 26,989 The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget…Herrod 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 $460 per month plus $106 per job plus $26 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 December to be 16 jobs and 126 meals, but the actual activity was 10 jobs and 109 meals. The actual cost for catering supplies in December was $4,850. The spending variance for catering supplies in December would be closest to: Multiple Choice O O O $582 U $582 F $496 U $496 FThe following information is available for Pioneer Company: Sales price per unit is $100. . November and December sales were budgeted at 3,060 and 3,420 units, respectively. Variable costs are 11 percent of sales (6 percent commission, 2 percent advertising, 3 percent shipping). Fixed costs per month are sales salaries, $5,700; office salaries, $2,900; depreciation, $2,600; building rent, $3,000; insurance, $1,500; and utilities, $700. Required: Determine Pioneer's budgeted selling and administrative expenses for November and December. Total Budgeted Selling and Administrative Expenses November December
- The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Cost per Cost per Month Student Course $ 2,910 $ 1,240 $ 4,500 $ 2,100 $ 3,500 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $ 80 Actual $ 53,170 $ 10,920 $ 17,490 $ 41 For example, administrative expenses should be $3,500 per month plus $41 per course plus $5 per student. The company's sales should average $890 per student. $ 1,970 $ 4,500 $ 2,240 $ 3,405 $ 280 The company planned to run four courses with a total of 63 students;…Mist, Inc. provides free meals in an employee cafeteria for its employees. The employee cafeteria budgeted $32 of variable expenses per employee for the month of December, calculated using a budgeted average of 1,650 employees. During December, an average of 1,630 employees were actually working in the various operating departments. The actual variable expenses incurred by the employee cafeteria totaled $54,200 for the month. For performance evaluation purposes at the end of December, how much variable expenses from the cafeteria should Mist, Inc. charge to the operating departments? Multiple Choice $54,852 $54,200 $52.160 $52,800The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 61 students enrolled in those two courses. Data concerning the company's cost formulas appear below. Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Cost per Fixed Cost per Month Cost per Course Student 2,940 $ 290 1,210 $ 50 4,700 2,200 3,700 $ 46 $ For example, administrative expenses should be $3,700 per month plus 546 per course plus $4 per student. The company's sales should average $880 per student. The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below. Revenue Actual 50,780 Instructor wages $ 11,040…
- Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 6,400 units, but its actual level of activity was 6,350 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Fixed element per month Variable element per unit Revenue $ 0 $ 33.90 Direct labor $ 0 $ 5.90 Direct materials 0 13.50 Manufacturing overhead 34,000 1.40 Selling and administrative expenses 25,200 0.60 Total expenses $ 59,200 $ 21.40 Actual results for May: Revenue $ 216,300 Direct labor $ 36,930 Direct materials $ 86,900 Manufacturing overhead $ 42,000 Selling and administrative expenses $ 30,440 The revenue variance for May would be closest to:Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Supplies Equipment depreciation. Factory rent Property taxes Factory administration Cost Formulas $16.10q $4,600+ $1.70q $5,000+ $0.509 $1,700+ $0.30q $18,700+ $2.80q $8,300 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration $3,000 $13,400+ $0.60q The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March $ 64,330 $ 10,750 $ 7,440 $ 3,140 $ 29,620 $ 8,700 $3,000 $ 15,090 Required: 1. Prepare the Production…Prestridge Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for August. Fixed Element per Month Revenue Variable Element per Customer Served $ 4,100 Actual Total for August $ 120,500 Employee salaries and wages $ 41,500 $ 1,000 $ 71,200 Travel expenses $ 500 $ 14,800 Other expenses $ 38,900 $ 38,400 When the company prepared its planning budget at the beginning of August, it assumed that 31 customers would have been served. However, 29 customers were actually served during August. The spending variance for total expenses for August would have been closest to: