The universal solutions division of jugan corporation

Question

1.Nussey Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 1,800 client-visits, but its actual level of activity was 1,720 client-visits. The clinic 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 client-visit
Revenue	?	$44.00
Personal expenses	$16,150	10.80
Medical supplies	475	6.50
Occupancy expenses	4,800	1.20
Administrative expenses	2,800	0.50
Total expenses	$ 24,225	$ 19.00

Actual results for May:

Revenue	$77,400
Personal expenses	$34,000
Medical supplies	$12,000
Occupancy expenses	$6,799
Administrative expenses	$3,000

The spending variance for occupancy expenses in May would be closest to:

	$161 U
	$161 F
	$65 F
	$65 U 2.Caballes Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 4,000 client-visits, but its actual level of activity was 3,970 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting:     Fixed element per month Variable element per client-visit   Revenue ?     $55.30       Personnel expenses $27,550     $14.00       Medical supplies 1,175     5.80       Occupancy expenses 6,000     1.50       Administrative expenses 4,000     0.30       Total expenses $38,725     $21.60        Actual results for November:      Revenue $221,129       Personnel expenses $25,579       Medical supplies $24,598       Occupancy expenses $12,352       Administrative expenses $8,931          The occupancy expenses in the flexible budget for November would be closest to: $12,352 $6,352 $12,000 $11,955 3.   The Litton Company has established standards as follows:    Direct material: 5 pounds per unit @ $4.30 per pound = $21.50 per unit Direct labor: 2 hours per unit @ $6 per hour = $12 per unit Variable manufacturing overhead: 2 hours per unit @ $5 per hour = $10 per unit Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased.      Units produced 900   units   Direct material used 4,670   pounds   Direct material purchased (5,670) pounds $32,886   Direct labor cost (1,700 hours) 10,880   Variable manufacturing overhead cost incurred $8,810    The company applies variable manufacturing overhead to products on the basis of standard direct labor-hours.    The materials quantity variance is: $731 U $4,670 U $170 U $170 F 4. The following materials standards have been established for a particular product:       Standard quantity per unit of output 4.8 feet            Standard price $19.60 per feet        The following data pertain to operations concerning the product for the last month:        Actual materials purchased 1,120 feet      Actual cost of materials purchased $21,280            Actual materials used in production 1,020 feet      Actual output 120 units        What is the materials price variance for the month? $672 F $612 U $672 U $612 F 5. A company's current net operating income is $47,600 and its average operating assets are $136,000. The company's required rate of return is 16%. A new project being considered would require an investment of $43,000 and would generate annual net operating income of $14,620. What is the residual income of the new project? $430 $4,600 ($430) $7,740 6. In August, the Universal Solutions Division of Jugan Corporation had average operating assets of $860,000 and net operating income of $96,500. The company uses residual income, with a minimum required rate of return of 12%, to evaluate the performance of its divisions. What was the Universal Solutions Division's residual income in August? $6,700 -$6,700 -$11,580 $11,580 7. Garnick Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: Hours   Move time 5.4        Wait time 30.0        Queue time 7.1        Process time 0.8        Inspection time 1.2      The delivery cycle time was: 5.4 hours 12.5 hours 42.5 hours 44.5 hours 8. Hoster Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: Hours   Move time 4.2        Wait time 14.9        Queue time 4.6        Process time 2.5        Inspection time 1.0      The throughput time was: 12.3 hours 19.5 hours 7.7 hours 27.2 hours 9. Aide Industries is a division of a major corporation. Data concerning the most recent year appears below:   Sales $18,100,000   Net operating income $926,000   Average operating assets $4,700,000 The division's margin is closest to: 19.7% 5.1% 26.0% 31.1% 10.Aide Industries is a division of a major corporation. Data concerning the most recent year appears below:   Sales $19,400,000   Net operating income $1,030,000   Average operating assets $6,000,000 The division's turnover is closest to: 18.83 3.23 0.17 2.76