1)SALES PROJECTIONS

Wilson Sports basketball sales in August were 150,000 units. Sales are expected to grow by 2% in September. October sales are expected to be 1,000 units less than in September. November sales will be 3% more than October. The selling price of the basketballs will remain the same $30 per unit. December sales projection is 157,000 units.

INVENTORY POLICIES

FINISHED GOODS

MAINTAIN AND ENDING INVENTORY EQUAL TO 25% OF NEXT MONTH SALES

ACTUAL BEGINNING INVENTORY 38,500 UNITS

DIRECT MATERIALS

MAINTAIN AND ENDING INVENTORY EQUAL TO 30% OF NEXT MONTH PRODUCTION

ACTUAL BEGINNING INVENTORY 9,000 POUNDS

MATERIALS REQUIREMENTS

Each basketball requires .25 pounds of materials at a cost of $7 per pound. December production are projected to be 156,000 units.

CALCULATE DIRECT MATERIALS COST FOR OCTOBER

2)SALES PROJECTIONS

Wilson Sports basketball sales in August were 150,000 units. Sales are expected to grow by 2% in September. October sales are expected to be 1,000 units less than in September. November sales will be 3% more than October. The selling price of the basketballs will remain the same $30 per unit. December sales projection is 157,000 units.

INVENTORY POLICIES

FINISHED GOODS

MAINTAIN AND ENDING INVENTORY EQUAL TO 25% OF NEXT MONTH SALES

ACTUAL BEGINNING INVENTORY 38,500 UNITS

REQUIREMENTS

Each basketball requires 15 minutes of labor at a rate of $12.00 per hour

Fixed Overhead is $400,000 monthly and variable overhead is assigned as 130% of direct labor

CALCULATE BUDGETED VARIABLE OVERHEAD FOR NOVEMBER

3)The difference between actual overhead costs incurred and the budgeted overhead costs based on a flexible budget is the:

Seleccione una:

Price variance.

Production variance.

Controllable variance.

Volume variance.

Quantity variance.