Question
Q4. The following data pertains to the month of October for ElmCo. when production was budgeted to be 5,000 units of P90. P90 has standard
Q4. The following data pertains to the month of October for ElmCo. when production was budgeted to be 5,000 units of P90. P90 has standard costs per unit of: 3lbs. of Direct Materials at a cost of $7.00 per lb; 0.20 hours of Direct Labor at $18.00 per hour; and Variable Overhead assigned on the basis of 0.05 machine hours at a rate of $50 per machine hour. Actual production of P90 for October was 4,600 units. In October the production of P90 totaled 4,600 units, using 828 direct labor hours costing a total of $15,732. Determine the direct labor efficiency variance. (Negative numbers indicate a favorable variance.)
Q5. Pablo Company has budgeted production for next year as follows: Q1 60,000 units; Q2 80,000 units; Q3 90,000 units; and Q4 70,000 units. Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 30,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be?
Q6. Center Company makes collections on sales according to the following schedule: 30% in the month of sale; 60% in the month following sale; 8% in the second month following the sale. The following sales are expected; January $100,000; February $120,000; and March $150,000. Cash collections in March are budgeted to be?
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