Cash Budget November December Quarter October $100,000 Beginning Cash bal. Cash collections Cash Available Less: Cash Disburse. For Purchases Dividend =Total cash disburse. Excess/(Deficiency) Borrowing Repayment Interest Ending Cash bal. 3. (10 points) The following standards have been established for a raw material used to make product 192: Standard quantity of the material per unit of output... 6 pounds Standard price of the material... $2.25 per pound Standard hours of labor per unit of output 3 hours Standard rate of the labor per hour S8 per hour The following data pertain to a recent month's operations: Actual material purchased....................... 13,600 pounds Actual cost of material purchased.......... $31,620 Actual material used in production........ 13,600 pounds Actual output. 2,300 units of product 192 Actual labor used 7,100 hours Actual total labor cost S57,150 Required: a. What is the materials price variance for the month? b. What is the materials quantity variance for the month? c. What is the labor rate variance for the month? d. What is the labor efficiency variance for the month? Bonus Question (6 bonus points possible) Layt Clock Company has developed the following flexible budget for its overhead costs. The standard hours allowed per unit is 1.2 hours. Manufacturing overhead at Layt is applied to production on the basis of standard machine-hours: Budget Information Machine Hours 26,400 Clocks produced... 22,000 Variable overhead cost per machine hour (standard) ... $5.90 Fixed overhead cost per unit per machine hours (standard) $6.48 Total Fixed overhead cost..... $171,072 The actual results for the year were as follows: Number of clocks produced........... Machine-hours incurred ............... Variable overhead cost............. Fixed overhead cost......... 21,500 24.940 $145,899 $170,540 Required: 1. Compute Variable Overhead Rate Variance. 2. Compute Variable Overhead Efficiency Variance. 3. Compute Fixed Overhead Budget Variance. 4. Compute Fixed Overhead Volume Variance