Question

I need help with three homework problems….1. LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.7 hours of direct labor at the rate of $23.00 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: $6.40 per unit $62.10 per unit $33.70 per unit $23.00 per unit2. Galante 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 May, Kennel budgeted for 4,500 tenant-days, but its actual level of activity was 4,480 tenant-days. Kennel 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 monthVariable element per tenant-day Revenue—$31.00 Wages and salaries$3,500 $7.00 Food and supplies900 11.80 Facility expenses8,500 4.00 Administrative expenses 8,300 0.40 Total expenses$21,200 $23.20
Actual results for May:

Revenue$108,280 Wages and salaries$23,550 Food and supplies$36,795 Facility expenses$19,300 Administrative expenses$9,150
The net operating income in the flexible budget for May would be closest to:$13,744$13,900$19,485$19,391 3. Karmazyn Hospital bases its budgets on patient-visits. The hospital’s static budget for October appears below:
Budgeted number of patient-visits8,700 Budgeted variable costs: Supplies (@ $9.80 per patient-visit)$ 85,260 Laundry (@ $9.50 per patient-visit)82,650 Total variable cost167,910 Budgeted fixed costs: Wages and salaries99,820 Occupancy costs107,820 Total fixed cost207,640 Total cost$375,550
The total variable cost at the activity level of 8,800 patient-visits per month should be:$209,970$167,910$169,840$207,640

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