Q$1$ Smoke, Inc. makes and sells serving trays. Each tray uses $1/2$ pound of plastic.

Budgeted production of trays in units for the next three months is as follows:

The company wants to maintain monthly ending inventories of plastic equal to $25\%$ of the

following month's budgeted production needs. The cost of plastic is $$2\mathrm{.}20$ per pound.

Required:

Prepare a direct material purchases budget for the month of May.

Q$2$ Nicholas Company manufactures TVs$.$ Some of the company's data was

misplaced. Use the following information to replace the lost data:Analysis Actual

Results Flexible Variances Flexible Budget Sales$-$

Volume Variances Static Budget

Units Sold $112,500112,500103,125$

Revenues $$42,080$ $$1,000$ F $($A$)$ $$1,400$ U $($B$)$

Variable Costs $($C$)$ $$200$ U $$15,860$ $$2,340$ F $$18,200$

Fixed Costs $$8,280$ $$860$ F $$9,140$ $$9,140$

Operating Income $$17,740($D$)$ $$16,080($E$)$ $$15,140$

Required:

a$.$ Compute the respective flexible$-$budget revenues $($A$)?$

b$.$ Compute the static$-$budget revenues $($B$)?$

c$.$ Compute the actual variable costs $(C)?$

d$.$ Compute the total flexible$-$budget variance $($D$)?$

e$.$ Compute the total sales$-$volume variance $($E$)?$

f$.$ Compute the total static$-$budget variance?