managerail accounting

ACT310

Fall 2020 Question One 156 Points) Monday Company manufactures audio speakers for desktop computer. 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 40,000 52,000 36,000 42,000 60,000 The selling price per unit is $15 The management of the company wants ending inventory to be equal to 20% of the following month's sales. On March 31, 8,000 units were on hand. Required: 1. Prepare the sales budget by month and for the second quarter ends June 30. (23 Points) 2. Prepare the Production budget by month and for the second quarter ends June 30. (32 Points) 135 Points) Question Two During June, Sunday Company manufactures a single product. The Company's material purchases amounted to 5,500 pounds at a price of $10.60 per pound. Actual costs incurred in the actual output production of 1,650 units were as follows: Direct labor: $175,200 ($24.00 per hour) Direct material: $43,566 ($10.60 per pound) The standards for one unit of Sunday Company's product are as follows: Direct labor: Direct material: Quantity, 4 hours per unit Quantity, 2 pounds per unit Rate, $22.50 per hour Price, $10.10 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. 19 points) Question Three Using your own words, explain under which circumstances the company would have a favorable or unfavorable direct material price variance. Page 4 of 4 2020 2021