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Part A: Cougar Company, a home decor specialty store, prepares its master budget on a quarterly basis. At December 31, 2020 the inventory balance was

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Part A: Cougar Company, a home decor specialty store, prepares its master budget on a quarterly basis. At December 31, 2020 the inventory balance was $60,000. Each months desired ending inventory should equal 25% of the following month COGS. The company's gross margin is 40% of sales. Budgeted sales for the next four months are as follows: January $400,000 February $600,000 March $300,000 April $200,000 Required: Prepare a merchandise purchases budget for Cougar Company. (15pts) Part B: KV Company produces a single product. The standard costs for one unit of product are as follows: Direct Material: 6oz @ $0.50 per ounce Direct Labor: 0.6 hrs at $35.00 per hour During April 2,000 units were produced. The actual costs associated with April's operations were as follows: Materials purchased and used in production: 14,000 oz. at total cost of $7,840 Direct labor: 1,060 hours at total cost of $31,800. Required: Compute price (rate) variance, quantity (efficiency) variance, and total variance for Direct Materials and Direct Labor. (10pts)

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