6. A firms policy is to pay for raw material supplies, 20% in the month of purchase and 80% in the following month. Supplies paid for in the month of purchase earn a 5% cash discount. Budgeted purchases are as follows:

June July August September

900 000 1 100 000 800 000 600 000

What are the budgeted payments to raw material suppliers in the month of August?

a.

$152 000

b.

$1 040 000

c.

$1032 000

d.

$1 022 000

5. Direct materials 5 kgs x $8 per kg

Direct labour 4 hours x $12 per hour

1,300 units produced in February with the following results:

Direct materials used 6 600 kgs costing $50,160

Direct labour 5 330 hours costing $65,026

What is the companys labour Efficiency Variance?

a.

$520 favourable

b.

$1560 favourable

c.

$1560 unfavourable

d.

$520 unfavourable