Budgetary Planning and Standard Costing

1. All of Gaylord Boutique's sales are on account. In the past, 20% of the amounts charged have been paid in the same month as the sale, 60% were paid in the following month, and the rest were paid in the second month following the sale. Sales for selected months are given below:

Prepare the cash receipts budget for the first three months of 2018.

1. East Lansing Mall expects to make purchases in the first quarter of 2018 as follows:

January $ 80,000

February 122,000

March 74,000

Purchases in December of 2017 are expected to be $93,000. The company expects that 45% of a month's purchases will be paid in the month of purchase and the balance will be paid in the following month. Calculate budgeted cash disbursements related to purchases for February of 2018

1. In your own words, explain and give examples of the following.
2. How is responsibility accounting applied and maintained in standard costing material price variance and material quantity variance? Which one of these two variances is related to purchasing manager and which one is related to production manager?

1. A favorable variance may actually be unfavorable. Give an example.

1. How process improvement may produce unfavorable variance. Give an example.