question six (12 points) Jorgansen Lighting, Inc., company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data: Year 1 Year 2 Inventories: 170 180 170 $1,080,400 $1,032,400 Variable costing net operating income The company's fixed manufacturing overhead per unit was constant at $560 for the two years. Required: Question four (15 points) The following is the information related to product (X) Standard Information per Unit: 2 Kilo grams of direct materials at Actual Information: Production is 3,000 units 6,200 Kilo Grams of direct materials were purchased at a price of $4 each Kilo Gram Required: 1. Total materials variance 2. Compute materials price variance 3. Compute materials quantity variance purchasing price of $3 each Kilo Gram Question one: (12 points) The following information relate to SAS Company 1. Estimated sales are 5,000 units at price of $8 each unit. 2. SAS would like to keep an ending inventory of 1,000 units. The beginning inventory is 2,00 units 3. To produce one unit, the company needs to spend 3 hours of direct labor. The wage rate per hour is $4. 4. To produce one unit, the production department needs to use 4 kilo grams of direct material "T. The purchasing price is $5 per kilo gram. Required: prepare the following: 1. Sales budget 2. Production Budget 3. Wages Budget 4. Raw Material Purchasing Budget Question three (16 points) he following informatio owing information is budgeted for McCracken Plumbing Supply Corporation for next quarter May $130,000 June Sales $110,000 $180,000 $105,000 $50,000 $85,000 $50,000 $92,000 Selling and administrative expenses All sales at McCracken are on credit. Forty percent are collected in the month of sale, 58% in the month following the sale, and the remaining 2% are uncollectible. Merchandise purchases are paid in full the month following the month of purchase. The selling and administrative expenses above include $8,000 of depreciation on display fixtures and warehouse equipment. All other selling and administrative expenses are paid as incurred. McCracken wants to maintain a cash balance of $15,800. Any amount below this can be borrowed from a local bank as needed at a quarterly interest rate of 3%. All borrowings are made at month end and payments of loans, or any part of loans, at month end as well. $50,000 Required Prepare McCracken's cash budget for May. McCracken expects to have s24,000 of cash on hand at the beginning of May. Show you work. uestion five The following information relate to product (Y): Standard Information per Unit: 3 direct labor hours at wages rate $5 each hour Actual Information: Actual direct labor hours 4,000 at wages rate $6 per hour Production 2,000 units Required: 1. Compute wages rate variance 2. Compute labor efficiency variance ) cowpute voages rate vartonce
