Fall 2020 Question One (56 Points) VGA Company manufactures whiteboards for schools. The controller is currently preparing a budget for the second quarter of the year. The sales forecast has been made as follows: April May June July August 70.000 94,000 62.000 74,000 110,000 The selling price per unit is $25 The management of the company wants ending inventory to be equal to 10% of the following month's sales. On March 31, 7,000 units were on hand, Required: 1. Prepare the sales budget (by month and in total) for the second quarter ending on June 30. (23 Points) 2. Prepare the Production budget (by month and in total) for the second quarter ending on June 30 (32 Points) Question Two (135 Points) Manchester Company manufactures a single product. During June, the Company's material purchases amounted to 2,200 pounds at a price of $10.5 per pound. Actual costs incurred in the actual output production of 1000 units were as follows: Direct labor: $32,550 ($12.00 per hour) Direct material: $18,900 ($10.5 per pound) The standards for one unit of product are as follows: Direct labor: Quantity, 3 hours per unit Rate, $10 per hour Direct material: Quantity, 2 pounds per unit Price, $10 per pound Required: Compute the following variances and indicate whether each variance is favorable or unfavorable: 1. Direct-material price variance. 2. Direct-material quantity variance. 3. Direct-material purchase price variance. 4. Direct-labor rate variance. 5. Direct-labor efficiency variance