Question 38 (2 points) Shown below is the sales forecast for Cooper Inc. for the first four months of the coming year. January $15.000 $100,000 February $24,000 $120,000 March $18,000 $90,000 April $14,000 570,000 Cash sales Credit sales On average, 60% of credit sales are paid for in the month of the sale, 30% in the month following sale, and the remainder are paid two months after the month of the sale. Assuming there are no bad debts, what is the expected value of Accounts Receivable at the end of April? $21,000 $70,000 $42,000 $28,000 ABC Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: Budgeted level of activity 9,700 MHS 9.900 MHs Actual level of activity per Standard variable manufacturing overhead rate $ 6.30, MH $ 6.10 per MH Actual total variable manufacturing overhead What was the variable overhead rate efficiency variance for the month? $1,260 U $720 U $1,220 U 1.980 F ABC Company has more units in inventory at the end of the year than at the beginning of the year. Assume that ABC Company has the same variable and fixed product costs each year. Which of the following is true? Net operating income under absorption costing is greater than net operating income under variable costing Net operating income under absorption costing is less than net operating income under variable costing Net operating income under absorption costing is the same as than net operating income under variable costing It is not predictable whether net operating income under absorption costing is greater than or less than net operating income under variable costing. Question 46 (2 points) Smith Well Servicing Company had its accountant gather the following information at the end of the period. What is the Total Variance for "Employee wages & salaries"? Flexible Actual Results $155,000 Revenue Employee salaries and wages Servicing materials Planned $153,000 $87,000 $23,800 $144,000 $85,200 $22.400 $86,000 $23,000 $30,000 $16.000 $35,400 Other expenses $35.400 $6,800 $1,000 Net Operating Income $1800 F $1800 U