1. Branch Corporation uses a standard cost system to account for the costs of its one product. Variable overhead is applied using direct labor hours. Standards allowed for each unit are 1.6 hours of labor at a variable overhead rate of $17. During November, Branch Corporation produced 2,650 units. Payroll totaled $97,980 for 5,290 hours worked. Variable overhead incurred totaled $102,185.

rate variance

efficiency variance

spending variance

2.

Blossom, Incorporated prepared the following master budget items for July:

Production and sales	26,160	units
Variable manufacturing costs:
Direct materials	$ 39,240
Direct labor	52,320
Variable manufacturing overhead	65,400
Fixed manufacturing costs	118,000
Total manufacturing costs	$ 274,960

Production and Sales		units
Variable Manufacturing Costs:
Direct Materials
Direct Labor
Variable Manufacturing Overhead
Fixed Manufacturing Costs
Total Manufacturing Costs

3.

Meredith Company has budgeted sales for the upcoming months as follows

April	$364,000
May	376,000
June	396,000
July	416,000
August	404,000
September	384,000

Assume that 40 percent of the sales are credit sales, and the remainder are cash sales. Credit sales are collected 50 percent in the month of sale, 40 percent in the month following the sale, and 10 percent in the second month following the sale.

	Cash Receipts

	Cash Receipts

	Cash Receipts