DC Co. estimates the following for the upcoming year: Quarter 1 Unit Sales 180,000 200,000 210,000 2 3 Total Units to DC estimates beginning finished goods inventory at 10,000 units. It desires an ending inventory equal to 20% of next quarters unit sales. The Production Budget for Quarter 1 will report Produce. 220,000 units 150,000 units 140,000 units 210,000 units If a company budgets unit sales of 50,000, but instead sells 55,000 units, a flexible budget report should compare the cost data associated with the sales based on a budget of the original planned level of activity. 55,000 units of activity. 5,000 units of activity. 50,000 units of activity. An unfavorable labor quantity variance may be caused by Idle worker time caused by disruption of workflow. hiring higher skilled workers. paying workers higher wages than expected. higher pay rates mandated by union contracts. Dolce Co. estimates its sales as follows: Quarter 1 2 3 4 Unit Sales 200,000 220,000 240,000 260,000 Total Sales $6,000,000 $6,600,000 $7,440,000 $8,060,000 Dolce desires a 20% ending inventory of finished goods. This assumption was also used the prior year. Dolce's Production Budget for the third quarter will show the following Units to be Produced: 224,000 240,000 244,000 292,000 Malone, Inc. manufactures one product called Tybos. The company uses a standard cost system and has established the following material and labor standards to produce one unit of Tybo: Direct materials Direct labor Standard Quantity 2.5 pounds 0.6 hours Standard Price $3 per pound $10 per hour Malone estimates it will produce 6,400 units of Tybos for the month of March. During March, the following activity was recorded by the company relating to actual production of Tybos: The company produced 6,000 units during the month. A total of 16,000 pounds of materials were purchased and used at a cost of $2.75 per Ib. Which of the following statements is true? The Materials Quantity Variance can't be determined. The Materials Quantity Variance is $2,750 unfavorable. The Materials Quantity Variance is $3,000 unfavorable The Materials Quantity Variance is $0. Dolce Co. estimates its sales at 180,000 units in the first quarter and that sales will increase by 18,000 units each quarter over the year. The budgeted sales price per unit is $25. All of Dolce's sales are credit sales for which 70% is received within the quarter the sale is made. The Sales Budget for the second quarter will report Total Budgeted Sales Revenue of $4,500,000 a. b. $4,950,000 $198,000 C. d. $20,700,000
