Req A,

ABC Companys raw materials purchases for June, July, and August are budgeted at $54,000, $44,000, and $69,000, respectively. Based on past experience, ABC expects that 70% of a months raw material purchases will be paid in the month of purchase and 30% in the month following the purchase.

Required: Prepare an analysis of cash disbursements from raw materials purchases for ABC Company for August.

Req B,

ABC Company has a cash balance of $43,000 on August 1 and requires a minimum ending cash balance of $28,344. Cash receipts from sales budgeted for August are $313,344. Cash disbursements budgeted for August include inventory purchases, $45,000; other manufacturing expenses, $122,000; operating expenses, $60,000; bond retirements, $68,000; and dividend payments, $33,000.

Required:

Prepare a cash budget for ABC Company for August.

Req C,

Acme Companys production budget for August is 17,800 units and includes the following component unit costs: direct materials, $6.00; direct labor, $10.00; variable overhead, $6.00. Budgeted fixed overhead is $35,000. Actual production in August was 19,368 units. Required: Prepare a flexible budget that would be used to compare against actual production costs for August.

Note: Round "Cost per unit" to 2 decimal places.

Req D,

Acme Companys production budget for August is 19,000 units and includes the following component unit costs: direct materials, $8.00; direct labor, $11.60; variable overhead, $5.60. Budgeted fixed overhead is $47,000. Actual production in August was 20,445 units. Actual unit component costs incurred during August include direct materials, $9.80; direct labor, $10.00; variable overhead, $6.40. Actual fixed overhead was $50,000. Required: Prepare a performance report, including each cost component.

Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).

Req E,

Western Manufacturing produces a single product. The original budget for April was based on expected production of 12,000 units; actual production for April was 10,800 units. The original budget and actual costs incurred for the manufacturing department follow:

	Original Budget	Actual Costs
Direct materials	$ 182,400	$ 168,300
Direct labor	150,000	138,000
Variable overhead	75,600	72,300
Fixed overhead	69,500	72,000
Total	$ 477,500	$ 450,600

Required:

Prepare an appropriate performance report for the manufacturing department.

Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).

\begin{tabular}{|l|l|l|l|} \hline & June & July & \multicolumn{1}{|c|}{ August } \\ \hline Budgeted raw material purchases & & & \\ \hline August cash payments: & & & \\ \hline Current month's purchases & & & \\ \hline Prior month's purchases & & & \\ \hline Total cash payments & & & \\ \hline \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|l|} \hline \multicolumn{1}{|c|}{ Cost Component } & OriginalBudget(19,000units) & FlexedBudget(20,445units) & ActualCost(20,445units) & Budget Variance \\ \hline Direct materials & & & & & \\ \hline Direct labor & & & & & \\ \hline Variable overhead & & & & & \\ \hline Fixed overhead & & & & & \\ \hline Total budgeted cost & $ & 0 & $ & 0 & \\ \hline \end{tabular}