12 ' ' I I U ON A A !!! v Av Question 3. (30 marks) For the first quarter of the following year Ronaldo Company has projected sales and production in units as follows: Jan Feb Mar Sales 41,000 45,000 38,000 50,000 Production 48,000 46,000 Cash-related production costs are budgeted at $8 per unit produced. Of these production costs, 40% ure paid in the month in which they are incurred and the balance in the next month $80,000 per month will account for Selling and administrative expenses. On January 31, the accounts payable balance totals $150,000, which will be paid in February All units are sold on account for $15 each. Cash collections from sales are budgeted at 60% in the month of sale, 20% in the month following the month of sale, and the remaining 15% in the second month following the month of sale. On January 1 accounts receivable totaled So. Submission Instructions: 1. Prepare a schedule for each month showing budgeted cash disbursements for Ronaldo Company 2. Prepare a schedule for each month showing budgeted cash receipts for Ronaldo Company. Ophelia Company's standard and actual costs per unit are provided below for the most recent period, During this time period 500 units were actually produced. Standard Actual Materials $4.96 10.50 1050 Standard: 3 metres at $1.50 per m. $.490 Actual: 31 metres at $1.60 per m Direct labour Standard: 1.5 hrs at $7.00 per hr Actual: 14 ts at $7.50 per hr Variable overhead Standard: 1.5 hrs at $3.40 per hr 5.10 Actual: 1.4 hrs, at $3.10 per hr Total unit cost $20.10 $19.30 For simplicity, assume there was no inventory of materials at the beginning or end of the period, 4.34 Submission Instructions: Given the information above, compute the following variances. Also indicate if the variances are favorable or unfavorable. 1. Materials price variance 2. Materials quantity variance 3. Direct labour rate variance 4. Direct labour efficiency variance 5. Variable overhead spending variance 6. Variable overhead efficiency variance 100% + Text Predictions on 200 ^