Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 1: A: We expect sales of $570,000 during 1st quarter. Selling and Administrative quarterly expenses include Sales Commissions (10% of sales), Advertising $2,500, Sales

Problem 1:

A:

We expect sales of $570,000 during 1st quarter. Selling and Administrative quarterly expenses include Sales Commissions (10% of sales), Advertising $2,500, Sales Salaries $30,000, Administrative Salaries $18,000, Depreciation on Office Equipment $5,000.

What will be the TOTAL amount of Selling and Administrative expenses reported on the budgeted income statement for the 1st quarter?

What will be the TOTAL amount of cash payments for selling and administrative expenses reported in the cash budget?

B:

During April, a department completed 1,500 units of product that has a standard materials usage and cost of 2.1 square feet per unit at $0.84 per square foot. The actual material usage consisted of 3,100 square feet at a total cost of $2,604. The actual purchase of this material amounted to 4,000 square feet at a total cost of $3,720.

Calculate (a) the material price variance_______

and (b) the material quantity variance.________

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Value Added Auditing CERM Academy Series On Enterprise Risk Management

Authors: Greg Hutchins

4th Edition

978-0965466554

More Books

Students also viewed these Accounting questions