accounting final

The standard amount of materials required to make one unit of Product Q is 2 pounds. Sam's static budget showed a planned production of 2,000 units. During the period the company actually produced 2,100 units of product. The actual amount of materials used averaged 2.3 pounds per unit. The standard price of material is $3 per pound. Based on this information, the materials usage variance was:

$1,890 unfavorable

Total cash disbursements for inventory is $40,000, for selling and administrative expenses is $30,000, interest expense of $10,000 and for a capital expenditure is $20,000. Total cash disbursements on the cash budget are

$100,000.

The Boyle Company estimated that April sales would be 50,000 units with an average selling price of $5.00. Actual sales for April were 80,000 units and average selling price was $5.20. The sales volume variance was:

$150,000 favorable

Hickam Company makes one product, for which it has developed the following standard for labor: each unit should require 1.50 hours at $12/hour. In April, Hickam made 10,000 units, using 1.65 hours per unit at a cost of $11.50 per hour. What is the labor price variance?

$18,000 favorable Reason: Labor price variance = 16,500 hours × ($12 - 11.50) = $8,250 favorable

Hickam Company makes one product, for which it has developed the following standard for labor: each unit should require 1.50 hours at $12/hour. In April, Hickam made 10,000 units, using 1.65 hours per unit at a cost of $11.50 per hour. What is the labor usage variance?

$18,000 unfavorable

Marks Company makes one product, for which it has established the following standards for materials: Average quantity of material per unit of product: 4.5 pounds Price per pound of materials, $18.50 During March, Marks made 10,000 units of the product, using 50,000 pounds at a total purchase price of $900,000. What is the materials price variance?

$25,000 favorable

January budgeted selling and administrative expenses for the retail shoe store that Craig Shea plans to open on January 1, year 1, are as follows: sales commissions, $50,000; rent, $30,000; utilities, $10,000; depreciation, $5,000; and miscellaneous, $2,500. Utilities are paid in the month after they are incurred. Other expenses are expected to be paid in cash in the month in which they are incurred. Determine the amount of budgeted cash payments for January selling and administrative expenses. Determine the amount of utilities payable the store will report on the January 31 pro forma balance sheet. Determine the amount of depreciation expense the store will report on the income statement for year 1, assuming that monthly depreciation remains the same for the entire year.

Budgeted cash payments $82,500 Utilities payable$10,000 Depreciation expense$60,000

Parliament Company, which expects to start operations on January 1, year 2, will sell digital cameras in shopping malls. Parliament has budgeted sales as indicated in the following table. The company expects a 10 percent increase in sales per month for February and March. The ratio of cash sales to sales on account will remain stable from January through March. Complete the sales budget by filling in the missing amounts. Determine the amount of sales revenue Parliament will report on its first quarter pro forma income statement.

Cash sales $50,000 $55,000 $60,500 Sales on account 120,0001 32,000 145,200 Total budgeted sales $170,000 $187,000 $205,700 Sales revenue: $562,700

Carmen's Dress Delivery operates a mail-order business that sells clothes designed for frequent travelers. It had sales of $400,000 in December. Because Carmen's Dress Delivery is in the mail-order business, all sales are made on account. The company expects a 30 percent drop in sales for January. The balance in the Accounts Receivable account on December 31 was $60,000 and is budgeted to be $41,000 as of January 31.

Expected cash collection $299,000

JJ Company planned to sell 5,000 units for $10 per unit. The Company actually sold 6,000 units for $15 per unit. What is the sales price variance?

$30,000 favorable

The standard amount of materials required to make one unit of Product Q is 4 pounds. Tusa's static budget showed a planned production of 3,800 units. During the period the company actually produced 4,100 units of product. The actual amount of materials used averaged 3.9 pounds per unit. The standard price of material is $1 per pound. Based on this information, the materials usage variance was:$1,890 unfavorable

$410 favorable

Durango Co. reported the following on the selling and administrative expense budget: Salary expense for October $100,000 Salary expense for November $200,000 Utilities expense for October $10,000 Utilities expense for November $8,000 Depreciation expense $30,000 Salaries and utilities are paid in the month of their occurrence. How much should Durango Co. budget for cash disbursements for selling and administrative expenses for the month of November?

208,00

In addition to other costs, Grosha Telephone Company planned to incur $600,000 of fixed manufacturing overhead in making 500,000 telephones. Grosha actually produced 508,000 telephones, incurring actual overhead costs of $599,400. Grosha establishes its predetermined overhead rate based on the planned volume of production (expected number of telephones). Calculate the predetermined overhead rate. Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U). Determine the fixed cost volume variance and indicate whether it is favorable (F) or unfavorable (U).

Predetermined overhead rate$1.20 per unit Total fixed cost spending variance$600 F Total fixed cost volume variance$9,600 F

Spalding Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Spalding expects sales in January year 1 to total $120,000 and to increase 5 percent per month in February and March. All sales are on account. Spalding expects to collect 70 percent of accounts receivable in the month of sale, 20 percent in the month following the sale, and 10 percent in the second month following the sale. Prepare a sales budget for the first quarter of year 1. Determine the amount of sales revenue Spalding will report on the year 1 first quarterly pro forma income statement.

Sales Budget January February March $120,000 $126,000 $132,300 Sales revenue$378,300

Pella Car Wash, Inc. expected to wash 2,000 cars during the month of August. Washing each car was expected to require 0.2 hour of labor. The company actually used 420 hours of labor to wash 1,880 cars. The labor usage variance was $880 unfavorable. Determine the standard labor price. If the actual labor rate is $17.50, indicate whether the labor price variance would be favorable (F) or unfavorable (U).

Standard labor price$20 Total labor price variance$1,050 F

assuming Carmichael Company had a favorable direct materials price variance of $5,000 and an unfavorable direct materials usage variance of $6,000.

The total direct materials variance is 1,000 unfavorable.

Monique's Florals produced a special Mother's Day arrangement that included eight roses. The standard and actual costs of the roses used in each arrangement follow: Standard ActualAverage number of roses per arrangement 8.0 8.25 Price per rose× $0.50 × $0.48 Cost of roses per arrangement$4.00 $3.96 Monique's Florals planned to make 750 arrangements but actually made 790. Determine the total flexible budget materials variance and indicate whether it is favorable (F) or unfavorable (U). Determine the materials price variance and indicate whether it is favorable (F) or unfavorable (U). Determine the materials usage variance and indicate whether it is favorable (F) or unfavorable (U).

Total flexible budget materials variance$31.60 F Total materials price variance$130.35 F Total materials usage variance$98.75 U

Budgeted cash payments$82,500selected answer correctb.Utilities payable$10,000selected answer correctc.Depreciation expense$60,000 Determine the sales volume variance, and indicate whether it is favorable (F) or unfavorable (U). Determine the flexible budget variance, and indicate whether it is favorable (F) or unfavorable (U). Did lowering the price of training services increase revenue?

Volume variance $180,000 F Flexible budget variance $189,000 U Was the decision profitable ? No