1 Finch Company began its operations on March 31 of the current year Finch has the following projected costs April May June Manufacturing costs (1) $157,000 $191,000 $210,000 Insurance expense (2) 1,070 1,070 1,070 Depreciation expense 1,970 1,970 1,970 Property tax expense (3) 410 410 410 (1) Of the manufacturing costs, three fourths are paid for in the month they are incurred and one fourth is paid for in the following month (2) Insurance expense is $1,070 a month however, the insurance is paid four times yearly, in the first month of the quarter (i e , January, April, July, and October) (3) Property tax is paid once a year in November The cash payments expected for Finch Company in the month of June are a $157,500 b $47,750 c $205,250 d $253,000 2 Below is budgeted production and sales information for Flushing Company for the month of December Product XXX Product ZZZ Estimated beginning inventory 28,800 units 18,500 units Desired ending inventory 35,000 units 14,200 units Region I, anticipated sales 308,000 units 252,000 units Region II, anticipated sales 193,000 units 144,000 units The unit selling price for product XXX is $7 and for product ZZZ is $14 Budgeted sales for the month are a $9,786,000 b $9,051,000 c $6,279,000 d $12,558,000 3 If the expected sales volume for the current period is 7,200 units, the desired ending inventory is 272 units, and the beginning inventory is 374 units, the number of units set forth in the production budget, representing total production for the current period, is a 7,472 b 7,200 c 7,098 d 6,826 4 The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100 of normal capacity of 30,000 direct labor hours The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows Standard 25,000 hours at $10 $250,000 Actual Variable factory overhead $202,500 Fixed factory overhead 60,000 What is the variable factory overhead controllable variance a $10,000 favorable b $2,500 favorable c $2,500 unfavorable d $10,000 unfavorable

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1. Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs (1)

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:

	April	May	June
Manufacturing costs (1)	$157,000	$191,000	$210,000
Insurance expense (2)	1,070	1,070	1,070
Depreciation expense	1,970	1,970	1,970
Property tax expense (3)	410	410	410

(1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred and one-fourth is paid for in the following month. (2) Insurance expense is $1,070 a month; however, the insurance is paid four times yearly, in the first month of the quarter (i.e., January, April, July, and October). (3) Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of June are

a.$157,500

b.$47,750

c.$205,250

d.$253,000

Below is budgeted production and sales information for Flushing Company for the month of December.

	Product XXX	Product ZZZ
Estimated beginning inventory	28,800 units	18,500 units
Desired ending inventory	35,000 units	14,200 units
Region I, anticipated sales	308,000 units	252,000 units
Region II, anticipated sales	193,000 units	144,000 units

The unit selling price for product XXX is $7 and for product ZZZ is $14. Budgeted sales for the month are

a.$9,786,000

b.$9,051,000

c.$6,279,000

d.$12,558,000

If the expected sales volume for the current period is 7,200 units, the desired ending inventory is 272 units, and the beginning inventory is 374 units, the number of units set forth in the production budget, representing total production for the current period, is

a.7,472

b.7,200

c.7,098

d.6,826

The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% of normal capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows: