1)Avril Company makes collections on sales according to the following schedule:

Question

1)Avril Company makes collections on sales according to the following schedule:    
   

  
   

  
   

  
     Cash collections in March should be budgeted to be:

A)$110,000

B)$110,950

C)$111,000

D)$120,500

2)

Roye 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 September, Kennel budgeted for 4,500 tenant-days, but its actual level of activity was 4,560 tenant-days. Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for September:

     
Data used in budgeting:

   

30% in the month of sale 65% in the month following sale 5% in the second month following sale

Explanation / Answer

1. Collection in march=110000*30%+120000*65%+190000*5%=120500

2.rEVENUE VARIANCE=4500*35-142130=15370F

3.overall variance=

Budget revenue=3700*30.2-3700*20.6-18800=16720

Actual variance=107480-23470-36787-19220-9134=18869

Variance=16720-18869=2149U

4.overall

Budget revenue=4100*35-4100*26.6-20500=14350

Actual=133251-28600-62225-22550-7100=12776

Varince=14350-12776=1574F

5. Dirct labour=6700*6.2=41540

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