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Problem #5 (4 points) During November, Olcor Construction Corporation production budget showed 6,000 units to be produced, and its sales budget showed 6,200 units to be sold. The following selling and administrative expenses were budgeted for November, 2017: Corporate depreciation Corporate insurance Office salaries Customer delivery costs Variable administrative supplies Corporate rent $24,000 $31,000 $27,000 $18,000 $4.30 per unit $33,000 Required: Prepare a selling and administrative expense budget for November. Problem #6 (5 points) Forto Chemical Corp. is a company that produces many products for janitors/ equipment and supplies. The company sells products to storekeepers as well as to customers. Extra Strength Toilet Bowl Cleaner is one of the products of Forto. It is a thick gel formula that cleans, deodorizes and descales without damaging the surface of the toilet. It is a cleaning product that is produced, packed in large boxes and then sold to customers and storekeepers. Forto uses a traditional standard costing system to control costs and has established the following materials, labor and overhead standards to produce one box of Extra Strength Toilet Bowl Cleaner: $27.00 $11.20 Variable manufacturing overhead: 0.9 hours @ $8.00 $7.20 $45.40 During March 2017, company produced and sold 5,000 boxes of Extra Strength Toilet Bowl Cleaner. 8,000 pounds of direct materials were purchased @ $15.50 per pound. Out of these 8,000 pounds, 7,000 pounds were used during March. There was no inventory at the beginning of March. 1600 direct labor hours were recorded during the month at a cost of $40,000. The variable manufacturing overhead costs during March totaled $7,200. Direct Materials: 2.5 pounds @ $18 per pound Direct labor: 0.8 hours $14 per hour Required: Compute: a Materials Price Variance b Materials Quantity Variance. c Direct Labor Rate Variance d Direct Labor Efficiency Variance. e Variable Overhead Spending Variance f Variable Overhead Efficiency Variance. (Assume that the materials price variance is computed at the time of purchase.)