Veltri corporation is working on its direct

Shuck Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,000 direct labor-hours will be required in May. The variable overhead rate is $1.10 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,350 per month, which includes depreciation of $9,000. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

$100,150

$109,150

$91,350

$8,800

LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.9 hours of direct labor at the rate of $25.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.

   The budgeted direct labor cost per unit of Product WZ would be:

$6.80 per unit

$25.00 per unit

$41.70 per unit

$72.50 per unit

LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.3 hours of direct labor at the rate of $19.00 per direct labor-hour. The company plans to sell 42,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 640 and 140 units, respectively. Budgeted direct labor costs for June would be: (Do not round intermediate calculations.)

$1,813,550

$1,851,050

$1,832,300

$790,500

The manufacturing overhead budget at Cardera Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 8,000 direct labor-hours will be required in January. The variable overhead rate is $9.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $114,400 per month, which includes depreciation of $18,180. All other fixed manufacturing overhead costs represent current cash flows.

The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

$96,220

$76,800

$191,200

$173,020

Sparks Corporation has a cash balance of $16,500 on April 1. The company must maintain a minimum cash balance of $13,500. During April, expected cash receipts are $63,000. Cash disbursements during the month are expected to total $74,500. Ignoring interest payments, during April the company will need to borrow:

$5,000

$8,500

$13,500

$11,500

Veltri Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.78 direct labor-hours. The direct labor rate is $10.30 per direct labor-hour. The production budget calls for producing 7,000 units in October and 6,800 units in November. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5,480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months?

$124,671.20

$112,888.00

$110,869.20

$111,075.20

The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information:

• Sales at $530,000, all for cash.

• Merchandise inventory on October 31 was $240,000.

• The cash balance November 1 was $26,000.

• Selling and administrative expenses are budgeted at $84,000 for November and are paid for in cash.

• Budgeted depreciation for November is $41,000.

• The planned merchandise inventory on November 30 is $270,000.

• The cost of goods sold is 70% of the selling price.

• All purchases are paid for in cash.

• There is no interest expense or income tax expense.

The budgeted cash receipts for November are:

$395,000

$530,000

$135,000

$571,000

Sarter Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.

Beginning Inventory

Ending Inventory

  Finished goods (units)

20,000

70,000

  Raw material (grams)

50,000

40,000

Each unit of finished goods requires 2 grams of raw material.

If the company plans to sell 550,000 units during the year, the number of units it would have to manufacture during the year would be:

600,000 units

550,000 units

500,000 units

620,000 units

Roye Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During September, Kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,460 tenant-days. Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for September:

Data used in budgeting:

Fixed element per month

Variable element per tenant-day

  Revenue

—

$34.30

  Wages and salaries

$2,300

$7.30

  Food and supplies

1,300

13.80

  Facility expenses

7,800

2.80

  Administrative expenses

6,300

0.40

  Total expenses

$17,700

$24.30

Actual results for September:

  Revenue

$115,625

  Wages and salaries

$28,530

  Food and supplies

$49,580

  Facility expenses

$16,500

  Administrative expenses

$7,093

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 performance report) for September would be closest to:

$2,378 U

$2,978 U

$2,978 F

$2,378 F

Roye Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During September, Kennel budgeted for 3,800 tenant-days, but its actual level of activity was 3,830 tenant-days. Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for September:

Data used in budgeting:

Fixed element per month

Variable element per tenant-day

  Revenue

—

$34.70

  Wages and salaries

$2,700

$7.70

  Food and supplies

1,700

14.20

  Facility expenses

8,200

3.20

  Administrative expenses

6,700

0.20

  Total expenses

$19,300

$25.30

Actual results for September:

  Revenue

$120,321

  Wages and salaries

$28,570

  Food and supplies

$56,975

  Facility expenses

$19,989

  Administrative expenses

$7,097

The spending variance for Food and supplies in September would be closest to:

$1,315 F

$889 U

$889 F

$1,315 U

Gourley Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 3,400 client-visits, but its actual level of activity was 3,310 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

—

$39.40

  Personnel expenses

$35,400

$10.60

  Medical supplies

1,400

7.40

  Occupancy expenses

8,400

1.40

  Administrative expenses

5,400

0.5

  Total expenses

$50,600

$19.90

The activity variance for administrative expenses in August would be closest to:

$105 F

$45 F

$105 U

$45 U

Thomasson Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $36,320 per month plus $2,074 per flight plus $1 per passenger. The company expected its activity in April to be 92 flights and 242 passengers, but the actual activity was 91 flights and 247 passengers. The actual cost for plane operating costs in April was $225,110. The activity variance for plane operating costs in April would be closest to: