A cash budget by quarters for Mocha Intl is given below (note that some data are missing) Missing data amounts have been keyed with either question marks or lowercase letters (a, b, c, etc ) these lowercase letters will be referred to in the questions that follow (It will be useful to calculate a value for items where a question mark appears ) The company requires a minimum cash balance of at least $10,000 to start a quarter All data are in thousands of dollars Mocha Intl Corporation Cash Budget $000s Quarters Lido Company's standard and actual costs for the most recent period, are given below Lido uses the following manufacturing standards Per Unit Direct Material 2metres $1 56 per metre Direct Labour 1 25Hours $16 00per hour MOH Variable 1 25Hours $3 45 per DLH Fixed 1 25 Hrs $10 00 based on capacity to produce 1,000 units During the most recent period Lido provided the following details Produced 950 Units Raw Material 2,500 metres of material were purchased at $1 45 per metre, and 2,000 metres were used Direct Labour 1,420 hours of labour were assigned to produce 950 units Direct labour actual hourly rate was $16 65 Actual Variable Manufacturing Overhead MOH $3 70 per labour hour Direct Labour Hours DLH as the COST DRIVER for overhead application Actual Fixed Overhead amounted to $11,500 for the period Part I Provide Journal Entries for 1 The purchase and use of raw materials 2 Direct Labour Part II Complete the following variance report and perform the analysis that follows WHO WHAT WHY Analysis (briefly) Identify any exceptions from the above and explain why you consider them important Comment on the exceptions you have identified Which variances will you seek more information on Why Who are the managers you will address in order to get answers What information will you be looking for Why Variance Analysis and Report Variances F U Direct Materials Price Quantity Direct Labour Rate Efficiency Overhead Variable Spending Efficiency Fixed Budget Volume Totals Variance Analysis and Report Variances F U Direct Materials Price Quantity Direct Labour Rate Efficiency Overhead Variable Spending Efficiency Fixed Budget Volume Totals

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A cash budget by quarters for Mocha Intl is given below (note that some data are missing). Missing data amounts have been keyed with either

A cash budget by quarters for Mocha Intl is given below (note that some data are missing). Missing data amounts have been keyed with either question marks or lowercase letters (a, b, c, etc.); these lowercase letters will be referred to in the questions that follow. (It will be useful to calculate a value for items where a question mark appears.) The company requires a minimum cash balance of at least $10,000 to start a quarter. All data are in thousands of dollars. Mocha Intl Corporation Cash Budget $000s Quarters

Lido Company's standard and actual costs for the most recent period, are given below: Lido uses the following manufacturing standards Per Unit: * Direct Material: 2metres @$1.56 per metre * Direct Labour : 1.25Hours @ $16.00per hour * MOH: Variable: 1.25Hours @ $3.45 per DLH - Fixed: 1.25 Hrs @$10.00 based on capacity to produce 1,000 units During the most recent period Lido provided the following details: Produced 950 Units Raw Material: - 2,500 metres of material were purchased at $1.45 per metre, and 2,000 metres were used Direct Labour: - 1,420 hours of labour were assigned to produce 950 units. Direct labour actual hourly rate was $16.65 Actual Variable Manufacturing Overhead MOH: - $3.70 per labour hour.Direct Labour Hours- DLH as the COST DRIVER for overhead application. Actual Fixed Overhead amounted to $11,500 for the period

Part I: Provide Journal Entries for: 1. The purchase and use of raw materials 2. Direct Labour

Part II: Complete the following variance report and perform the analysis that follows

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WHO? WHAT? WHY? Analysis (briefly): Identify any exceptions from the above and explain why you consider them important. Comment on the exceptions you have identified: Which variances will you seek more information on? Why? Who are the managers you will address in order to get answers?: What information will you be looking for? Why?

Variance Analysis and Report Variances F U Direct Materials Price Quantity Direct Labour Rate Efficiency Overhead - Variable: - Spending - Efficiency Fixed: - Budget - Volume Totals: Variance Analysis and Report Variances F U Direct Materials Price Quantity Direct Labour Rate Efficiency Overhead - Variable: - Spending - Efficiency Fixed: - Budget - Volume Totals