Question 1

Speedy co. developed the following budget for the month of October

October 1 cash balance	$7,400
Cash sale in October	$90,000

Credit sale for the following month

August	$32,000
September	$35,000
October	$39,000

For credit sale the controller has found the following collection pattern

60%	Collected in the month of sale
20%	Collected in the month after sale
15%	Collected two month after the sale
5%	Expected to be uncollectible

Budgeted material purchase for September and October are

September	$53,000
October	$48,000

Material purchase are

20%	In the month of purchase
80%	In the month following purchase

Other budget cost in October

Utilities	$5,610
Salaries	$22,140
Deprecation on the building and equipment	$20,000

• How much is the total budgeted cash collection from a/r in october
• How much is the total cash inflows from all sources in october
• How much is the october cash payment for purchases made in september and october
• How much is the total cash disbursements in october

Question 2

Peggy eys inc produces exquisites sunglasses

The following standard cost were developed for one of their product

Standard cost per unit		Total
Variable cover head	7 hours @ $8 per hours	$56

Overhead is applied to products on the basis of standard labor hours for actual production

The following information is available regarding the company operations for the period

Actual units produced	12,100 units
Total actual direct labour hour	88,000 hours
Actual variable manufacturing overhead incurred	$792,000
Budgeted units for the period	10,800 units

calculated the variable overhead variances

• The amount of the variable overhead spending variance for the period is
• Indicate if the variable overhead spending variable is favorable or unfavorable
• The amount of the variable overhead efficiency variance for the period is
• Indicate if the variable overhead efficiency is favorableor unfavorable

Question 3

Alice co has the following sales in units budget for the first quarter of 2022

	Sales in units
January	5,200
February	5,700
March	6,300
April	6,900

The desired ending inventory at the end of each month should be equal to 25% of the following month budgeted sale (this policy also applies to the year of 2021.)

create a production budget for the month of march and determine the following question

• Compute the desired ending inventory for the month
• Compute the total inventory needed for the month
• Compute the beginning inventory for the month

Question 4

Dr mickey finn performs a certain procedure for $400. The fixed cost are $8,000 and variable costs are $200 per procedure

What is the margin of safety in units assuming the procedure is performed 200 times?

• 160 units
• 140 units
• 200 unit
• 130 units

Question 5

When determining the cost of a manufactured product, a factory janitor eagles would be classified as

• A direct cost
• An indirect cost
• A period cost
• A conversion cost

Question 6

Rutherford in is considering to invest in an automated production system with the following anticipated cash flow. Compute the discounted cash flow that is appropriate for each of the following items assuming a required rate of return of 10%

Enter a positive number for cash inflow, a negative number for outflows, enter n/a if no cash flow occurs

• The immediate payment of $315,900 is required for the upgrade
• Straight-line deprecation of $35,100 is required for the upgrade
• The annual saving in cash operating cost of $72,000 over the next 9 years
• A refurbishment is required by the end of year 5 for the automated system to continue functioning, which will cost $22,000
• The system can be sold for $60,000 at the end of its service life

Part b

Compute the present value of part a

Part c

Should the new long-term investment be taken on?

please explain steps. Thank you