5) Bugos Corporation is a service company that measures its output by the number

Question

5) Bugos 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. Fixed Element per Month Variable Element per Customer Served Revenue Employee salaries and wages Travel expenses Other expenses S 4,200 S 900 S 700 $ 58,800 S 33,300 When the company prepared its planning budget at the beginning of March, it assumed that 40 customers would have been served The amount shown for "Employee salaries and wages" in the planning budget for March would have been closest to: A) $94,800 B) S102,889 C) $92,600 D) S91,200

Explanation / Answer

5) Employee salary and wages in planning budget = (900*40+58800) = 94800

so answer is a) $94800

20) Activity variance for direct labour :

Activity variance for direct labour = (5900-5850)*5.60 = 280 F

so answer is b) $280 F

49) Variable overhead rate variance = (Standard rate-actual rate)actual hours

                                                   = (14.85*8600-130720)

Variable overhead rate variance = 3010 U

So answer is a) $3010 U

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