Q1.

Clay Corporation has projected sales and production in units for the second quarter of the coming year as follows:

	April	May	June
Sales	53,000	43,000	63,000
Production	61,500	51,500	51,500

Required:

a.

Cash-related production costs are budgeted at $5.3 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $130,000 per month. The accounts payable balance on March 31 totals $220,000, which will be paid in April. Prepare a schedule for each month showing budgeted cash disbursements for Clay Corporation.

b.

Assume that all units are sold on account for $14.3 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $533,000 ($93,000 from February's sales and $440,000 from March?s sales) Prepare a schedule for each month showing budgeted cash receipts for Clay Corporation.(Do not round intermediate calculations.)

Q2.

Kouba Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.26 direct labor-hours. The direct labor rate is $8.70 per direct labor-hour. The production budget calls for producing 3,500 units in April and 3,400 units in May. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 960 hours in total each month even if there is not enough work to keep them busy.

Required:

Construct the direct labor budget for the next two months.(Round your answers to 2 decimal places.)

Q3.

During May, Cockrel Corporation plans to serve 49,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:

Revenue: $4.50q

Wages and salaries: $34,900 + $1.70q

Supplies: $.90q

Insurance: $18,000

Miscellaneous expense: $5,900 + $.60q

Required:

Prepare the company's planning budget for May.

Q4.

During April, Cheatam Corporation budgeted for 35,000 customers, but actually served 33,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:

Revenue: $4.65q

Wages and salaries: $36,000 + $1.81q

Supplies: $0.71q

Insurance: $13,000

Miscellaneous expense: $6,000 + $0.21q

Required:

Prepare the company's flexible budget for April based on the actual level of activity for the month.

Q5.

Oddo Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost PerUnit
Direct materials	3.0 ounces	$8.10 per ounce	$24.30
Direct labor	0.8 hours	$20.00 per hour	$16.00
Variable overhead	0.8 hours	$8.00 per hour	$6.40

The company reported the following results concerning this product in December.

Originallybudgetedoutput	4,510	units
Actual output	4,310	units
Raw materials used in production	13,200	ounces
Actual direct labor-hours	14,990	hours
Purchases of raw materials	3,718	ounces
Actual price of raw materials	$7.90	per ounce
Actual direct labor rate	$19.40	per hour
Actual variable overhead rate	$8.20	per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for December is:

$2,214 F

$2,160 U

$2,160 U

$2,214 F

Q6.

Epley Corporation makes a product with the following standard costs:

	Standard Quantityor Hours	Standard Price or Rate
Direct materials	2.0 pounds	$7.00 per pound
Direct labor	0.4 hours	$12.00 per hour
Variable overhead	0.4 hours	$2.00 per hour

In July the company produced 4,600 units using 10,100 pounds of the direct material and 2,080 direct labor-hours. During the month, the company purchased 10,670 pounds of the direct material at a cost of $76,550. The actual direct labor cost was $38,258 and the actual variable overhead cost was $11,959.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for July is:

rev: 11_06_2015_QC_CS-32670

$1,720 U

$1,860 F

$6,300 U

$1,720 F

Q7.

Gilder Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost PerUnit
Direct materials	3.1 grams	$5.00 per gram	$15.50
Direct labor	0.9 hours	$14.00 per hour	$12.60
Variable overhead	0.9 hours	$5.00 per hour	$4.50

The company reported the following results concerning this product in June.

Originallybudgetedoutput	8,800	units
Actual output	8,700	units
Raw materials used in production	26,000	grams
Purchases of raw materials	30,500	grams
Actual direct labor-hours	7,200	hours
Actual cost of raw materials purchases	$155,550
Actual direct labor cost	$107,280
Actual variable overhead cost	$33,840

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for June is:

$2,961 F$3,150 U$2,961 U$3,150 F

Q8.

The Fischer Corporation uses a standard costing system. The following data have been assembled for December:

Actual direct labor-hours worked	5,400	hours
Standard direct labor rate	$10	per hour
Labor efficiency variance	$2,500	unfavorable

The standard hours allowed for December's production is:

4,900 hours5,150 hours5,400 hours5,650 hours

Q9.

Krizum Industries makes heavy construction equipment. The standard for a particular crane calls for 31 direct labor-hours at $15 per direct labor-hour. During a recent period 1,850 cranes were made. The labor rate variance was zero and the labor efficiency variance was $6,300 unfavorable. How many actual direct labor-hours were worked?

63,65057,35057,77055,500

Q10.

Blue Corporation's standards call for 5,800 direct labor-hours to produce 1,450 units of product. During May 1,050 units were produced and the company worked 1,350 direct labor-hours. The standard hours allowed for May production would be:

5,800 hours 1,350 hours 4,200 hours 4,750 hours

Q11.

The Swenson Corporation has a standard costing system. The following data are available for June:

Actual quantity of direct materials purchased	35,000	pounds
Standard price of direct materials	$8	per pound
Material price variance	$7,000	unfavorable
Material quantity variance	$7,500	favorable

The actual price per pound of direct materials purchased in June is:(Round your answer to 2 decimal places.)

$7.76$8.00$8.20$8.24

Q12.

Paradiso Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,140 patient-visits and the actual level of activity was 1,130 patient-visits. The cost formula for administrative expenses is $3.80 per patient-visit plus $21,000 per month. The actual administrative expense was $21,700. In the clinic's performance report for last month, the spending variance for administrative expenses was:

$3,594 F

$1,420 U

$38 F

$3,632 F