22.

Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $56,000 and $64,000, respectively. The company expects to collect 35% of its credit sales in the month of the sale and the remaining 65% in the following month. What amount of accounts receivable would the company report in its balance sheet at the end of the second month?

Multiple Choice

• $19,600

• $41,600

• $22,750

• $58,800

23.

Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $48,000 and $76,000, respectively. The company expects to collect 60% of its credit sales in the month of the sale and the remaining 40% in the following month. What amount of cash collections from credit sales would the company include in its cash budget for the second month?

Multiple Choice

• $45,600

• $30,400

• $74,400

• $64,800

24.Assume that the amount of one of a companys fixed expenses in its flexible budget is $46,000. The actual amount of the expense is $48,000 and the amount in the companys planning budget is $46,000. The spending variance for this expense is:

Multiple Choice

• $2,000 U.

• $0.

• $2,000 F.

• $4,000 U.

25.

Assume the following:

• The standard labor rate per hour is $17.60.
• The standard labor-hours allowed per unit of finished goods is 3 hours.
• The actual quantity of labor hours worked during the period was 44,000 hours.
• The total actual direct labor cost for the period was $726,000.
• The company produced 15,000 units of finished goods during the period.

What is the labor rate variance?

Multiple Choice

• $46,400 U

• $46,400 F

• $48,400 U

• $48,400 F