Here are links to the allowable web-calculators: Kingman Wait Time Formula Calculator (link) norm.dist & norm.inv Calculator (link). Order-Up-To Metrics Calculator (link). (These calculator websites are the only allowed webpages  during the exam, other than the Exam itself.

C&A Lawn Care purchases bags of fertilizer for its business from a supplier who charges $[K] per order and $[c] per bag.  Firm A needs 1600 bags of fertilizer a year. C&A’s annual holding costs are $[h] per bag.  What is C&A’s economic order quantity?

A firm chooses an order-up-to level of [S] units. At the start of this week there are no on-hand units, 20 on-order units, and [b] backordered units. How much should be ordered this week?

If the contribution margin is not sufficient to cover fixed expenses:              

The following labor standards have been established for a particular product:Standard labor hours per unit of output4.5 hoursStandard labor rate$ 15.50 per hourThe following data pertain to operations concerning the product for the last month:Actual hours worked5,100 hoursActual total labor cost$ 87,360Actual output1,100 unitsRequired:Show all the numbers you use for the calculations and label the variance either U or F. a. What is the labor efficiency variance for the month? (3 pts) b. Label the variance unfavorable (U) or favorable (F). (1 pt)

An oil well service company measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Fixed Element per MonthVariable Element per Well ServicedRevenue $4,200Employee salaries and wages$41,300$1,200Servicing materials $ 500Other expenses$33,000 When the company prepared its planning budget at the beginning of June, it assumed that 33 wells would have been serviced. However, 31 wells were actually serviced during the month.The amount shown for net operating income in the planning budget for the month would have been closest to:

1)     A corporation has provided the following data concerning one of the products in its standard cost system.  InputsStandard Quantity Standard Price Raw materials6.6  grams$7.70 per gram   The company has reported the following actual results for the product for December:Actual output9,200 unitsRaw materials purchased64,500 gramsActual cost of raw materials purchased$548,250Raw materials used in production60,710 grams  The raw materials quantity variance for the month is closest to:

It is important to clearly distinquish between deviations from price standards and from quantity standards since they are normally the responsibility of different managers.

A company’s cost formula for its supplies cost is $1,150 per month plus $15 per frame. For the month of May, the company planned for activity of 613 frames, but the actual level of activity was 605 frames. The actual supplies cost for the month was $10,500. The spending variance for supplies cost for the month would be closest to:

To help assess how well a manager has controlled costs, actual costs should be compared to the costs in the planning budget.