Korvanis Corporation operates a Medical Services Department that charges its variable costs to operating departments based on theactual number of employees in each department. It charges fixed costs to operating departments based on the long-run averagenumber of employees.The Medical Services Department's variable costs are budgeted at $55 per employee and its fixed costs are budgeted at $609,700per year. Actual Medical Services Department costs for the most recent year were $105,600 for variable costs and $615,000 for fixedcosts. Data concerning employees in the three operating departments follow:CuttingMillingBudgeted number of employees612285Assembly915Actual number of employees for the mostrecent year512385815Long-run average number of employees6304201,050Required:1. Calculate the Medical Services Department charges to each of the operating departments-Cutting, Milling, and Assembly.2. How much, if any, of the Medical Services Department's actual costs should be treated as a spending variance and not charged tooperating departments?Complete this question by entering your answers in the tabs below.Required 1Required 2Calculate the Medical Services Department charges to each of the operating departments-Cutting, Milling, and Assembly.Medical services department chargesCuttingMillingAssembly

Fixed cost:The cost that does not change with the change in production unit is known as fixed cost.…

The Medical Services Department's variable costs are budgeted at $55 per employee and its fixed costs are budgeted at $609,700 per year. Actual Medical Services Department costs for the most recent year were $105,600 for variable costs and $615,000 for fixed costs. Data concerning employees in the three operating departments follow: Budgeted number of employees Cutting 612 Milling 285 Assembly 915 Actual number of employees for the most recent year 512 385 Long-run average number of employees 630 420 815 1,050

The Medical Services Department's variable costs are budgeted at $55 per employee and its fixed costs are budgeted at $609,700 per year. Actual Medical Services Department costs for the most recent year were $105,600 for variable costs and $615,000 for fixed costs. Data concerning employees in the three operating departments follow: Budgeted number of employees Cutting 612 Milling 285 Assembly 915 Actual number of employees for the most recent year 512 385 Long-run average number of employees 630 420 815 1,050

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Variable Medical Services Department costs are budgeted at $56 per employee. Fixed Medical Services Department costs are budgeted at $697,500 per year. Actual Medical Services Department costs for the most recent year were $105,400 for variable costs and $703,000 for fixed costs. Data concerning employees in the three operating departments follow: Budgeted number of employees Actual number of employees for the most recent year Long-run average number of employees Required 1 Required 2 Cutting 617 517 1,020 Medical services department charges Cutting Required: 1. Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and Assembly. 2. How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance and not charged to the operating departments? Complete this question by entering your answers in the tabs below. Milling 283 383 680
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Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 36,100 customers, but actually served 27,900 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.60q Wages and salaries: $34,300+ $1.43q Supplies: $0.83q Insurance: $11,500 Miscellaneous expenses: $7,500 + $0.41q The company reported the following actual results for February: Revenue Wages and salaries Supplies Insurance Miscellaneous expense Required: $ 141,800 $ 69,100 $ 15,500 $ 11,500 $ 23,200 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.) Arrasmith Corporation Flexible Budget Performance Report For the Month Ended February 28…
Leist Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,170 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Fixed element per month Variable element per client-visit Revenue $ 0 $ 50.80 Personnel expenses $ 26,600 $ 15.60 Medical supplies 1,400 9.40 Occupancy expenses 7,600 2.40 Administrative expenses 5,300 0.10 Total expenses $ 40,900 $ 27.50 The occupancy expenses in the flexible budget for September would be closest to: Multiple Choice A. $13,215 B. 12,808 C. $13,583 D. $12,880
Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 36.100 customers, but actually served 27.900 customers. The company uses the following revenue and cost formules in its budgeting, where is the number of customers served: Revenue: $4.60q Wages and salaries: $34,300+ $1.43q Supplies: $0.83q Insurance: $11,500 Miscellaneous expenses: $7,500 + $0.41q The company reported the following actual results for February: $ 141,800 $ 69,100 $ 15,500 $ 11,500 $ 23,200 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). Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values. Customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous…
At the beginning of the period, the Cutting Department budgeted direct labor of $128,000, direct materials of $163,000 and fixed factory overhead of $14,000 for 8,000 hours of production. The department actually completed 10,200 hours of production. The appropriate total budget for the department, assuming it uses flexible budgeting, is Round your final answer to the nearest dollar. Do not round interim calculations. Oa. $385,025 Ob. $308,850 Oc. $388,875 Od. $305,000 ......
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.)
At the beginning of the period, the Cutting Department budgeted direct labor of $128,000, direct materials of $163,000 and fixed factory overhead of $14,000 for 8,000 hours of production. The department actually completed 10,200 hours of production. The appropriate total budget for the department, assuming it uses flexible budgeting, is Round your final answer to the nearest dollar. Do not round interim calculations. Oa. $385,025 Ob. $308,850 Oc. $388,875 Od. $305,000 ......
At the beginning of the period, the Cutting Department budgeted direct labor of $57,120 and supervisor salaries of $45,420 for 3,360 hours of production. The department actually completed 3,700 hours of production. Determine the budget for the department assuming that it uses flexible budgeting.$
Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating departments for the variable costs of the Medical Services Department are based on the actual number of employees in each department. Charges for the fixed costs of the Medical Services Department are based on the long-run average number of employees in each operating department. Variable Medical Services Department costs are budgeted at $57 per employee. Fixed Medical Services Department costs are budgeted at $639,300 per year. Actual Medical Services Department costs for the most recent year were $105,800 for variable costs and $645,000 for fixed costs. Data concerning employees in the three operating departments follow: Budgeted number of employees Cutting 604 Milling 293 Assembly 918 Actual number of employees for the most recent year 504 393 Long-run average number of employees 1,050 700 818 1,750 Required: 1. Determine the Medical Services Department charges for the…