3.Silver Company makes a product that is very popular as a Mother's Day gift.Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below:

April

May

June

Total

Budgeted Sales (all on account)

$300,000

$500,000

$200,000

$1,000,000

From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale.Bad debts are negligible and can be ignored.February sales totaled $230,000, and March sales totaled $260,000.

Required:

a)Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.

b)Assume that the company will prepare a budgeted balance sheet as of June 30.Compute the accounts receivable as of that date.

5. The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours:

1^st Quarter

2^nd Quarter

3^rd Quarter

4^th Quarter

Budgeted direct labor hours

8,000

8,200

8,500

7,800

The company's variable manufacturing overhead rate is $3.25 per direct labor-hour and the company's fixed manufacturing overhead is $48,000 per quarter.The only noncash item included in fixed manufacturing overhead is depreciation, which is $16,000 per quarter.

Required:

a)Construct the company's manufacturing overhead budget for the upcoming fiscal year, including cash dispersed for manufacturing overhead.

b)Compute the company's manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year.Round off to the nearest whole cent.

1. Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier.Management has identified two cost driversthe number of cruises and the number of passengersthat it uses in its budgeting and performance reports.The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand.Up to 80 passengers can be accommodated on the tour boat.Data concerning the company's cost formula appear below:

Fixed Cost per Month

Cost per Cruise

Cost per Passenger

Vessel operating costs

$5,200

$480.00

$2.00

Advertising

$1,700

Administrative costs

$4,300

$24.00

$1.00

Insurance

$2,900

For example, vessel operating costs should be $5,200 per month plus $480 per cruise plus $2 per passenger.The company's sales should average $25 per passenger.The company's planning budget for July is based on 24 cruises and 1,400 passengers.

Required:

Prepare the company's planning budget for July.

7.Huron Company produces a commercial cleaning compound known s Zoom.The direct materials and direct labor standards for one unit of Zoom are given below:

Standard Quantity or Hours

Standard Price or Rate

Standard Cost

Direct Materials

4.6 pounds

$2.50 per pound

$11.50

Direct Labor

0.2 hours

$12.00 per hour

$2.40

During the most recent month, the following activity was recorded:

A)Twenty thousand pounds of material were purchased at a cost of $2.35 per pound.

B)All of the material purchased was used to produce 4,000 units of Zoom.

C)750 hours of direct labor time were recorded at a total labor cost of $10,425.

Required:

1)Compute the materials price and quantity variances for the month.

a.Material Price Variance

b.Material Quantity Variance

2)Compute the labor rate and efficiency variances for the month.

a.Labor Rate Variance

b.Labor Efficiency