22) MUST Budgeted sales in Aser ANSWER THIS QUESTION orporation over the next fo

Question

22) MUST Budgeted sales in Aser ANSWER THIS QUESTION orporation over the next four months are given below Novetm $130,00 udgeted sales Twenty-five percent of the company for sales on account follow a collected in the month of sale, 30% collected in the second mont $170,00 $140,0o 75% are on account. sales are for cash and stable pattern as follows: 50% of a month's credit sales are as The remainder are uncollectible. Given these be: c are collected in the month following sale, and 15% are 103.75ections for Decemberng B) $136375 A) S103,875 D) $98,125 C$119,500 23) The following standards for variable that makes only one product: manufacturing overhead have been established for a company tandard hours per unit of output tandard variable overhead rate 5.6 hours S12.00 per hour The following data pertai n to operations for the last month: ctual hours ctual total variable manufacturing overhead cost ct 2.600 hours $31.330 output 400 units What is the variable overhead rate variance for the month? A) $4,338 U B) $130 U C) $112 F D) $4,450 U 24) The Covey Corporati on is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manufacturing overhead rate is $4.00 per budgeted fixed manufacturing depreciation. If the budgeted cash disbursements for the budgeted direct labor-hours for November must be: direct labor-hour,; the overhead is $64,000 per month, of which $18,000 is factory manufacturing overhead for November are $90,000, then A) 2,000 direct labor-hours B) 11,000 direct labor-hours D) 6,500 direct labor-hours C) 22,500 direct labor-hours 25) ** MUST ANSWER THIS QUESTION** The standard cost card of a particular product specifies that it requires 4.5 direct direct labor-hour. During March, 2,300 units of were incurred. A total of 11,700 direct labor-hours were labor-hours at $12.80 per the produet were produced and direct labor wages of $128,300 were worked. The direct labor variances for the month Labor Rate Variance $4,180 F 54,180 F $21,460 F $21,460 F Labor Efficiency Variance $14,804 U $17,280 U $14,804 U $17,280 U A) OptionA B) OptionB C) Option C D) Option D

Explanation / Answer

22) Answer: Option B) $136375

23) Answer: Option B) $130 U

Variable overhead rate variance = Actual variable overhead - (Standard rate x Actual hours) = $31330 - ($12 x 2600) = $31330 - $31200 = $130 U

24) Answer: Option B) 11,000 direct labor-hours

Budgeted cash disbursements for fixed manufacturing overheads = $64000 - $18000 = $46000

Budgeted cash disbursements for variable manufacturing overheads = $90000 - $46000 = $44000

Budgeted direct labor hours = $44000/$4 = 11000

25) Answer: D) Option D

Labor rate variance = (AH x AR) - (AH x SR) = $128300 - (11700 x $12.80) = $128300 - $149760 = $21460 F

Labor efficiency variance = (SR x AH) - (SR x SH) = $149760 - [$12.80 x (4.5 x 2300)] = $149760 - $132480 = $17280 U

October November December Sales $ 150000 170000 130000 Credit sales (75%) 112500 127500 97500 December cash sales (25% x 130000) 32500 October credit sales (15% x 112500) 16875 November credit sales (30% x 127500) 38250 December credit sales (50% x 97500) 48750 Cash collections $ 136375

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