Testbank Exercise 2 Thrope, Inc. purchased 1,600 pounds of direct material at a price of $1.10 per pound. The standard price of the material is $1.22 per pound. Thrope used 2,000 pounds in production while the standard pounds allowed for actual production was 1,900. Calculate the direct materials price and quantity variances and indicate whether the variances are favorable or unfavorable Direct material price variance $ Direct material quantity variance Grantham Manufacturing Company makes oak rocking chairs. Budgeted sales are 20,200 for July, 23,300 for August, 29,200 for September and 30,500 for October. Grantham maintains an ending inventory equal to 10% of the current month's sales. Ending inventory at June 30th was 2,860. Prepare a production budget for the 3rd quarter ending September 30. Grantham Manufacturing Company Production Budget 3rd Quarter September July August Click if vou would like to Show Work for this question: Open Show Work Open Show Work Click if you would like to Show Work for this question: Cooper Company, a retailer of camping supplies has budgeted activity for January using the following data: Cash sales $25,000 413,200 Credit sales (57% collected in month of sale) Selling and administrative costs (including depreciation) 46,800 Depreciation expense 5,040 Merchandise Inventory, January 1 23,060 Merchandise Inventory, January 31 19,540 Beginning cash balance 3,010 Minimum cash balance required 2,300 Cost of goods sold is 59% of Cooper's selling price All purchases are paid in cash Selling and administrative costs are paid in month of purchase Prepare a cash budget for January (Enter cash needed using either a negative sign preceding the number e.g. -4,527 or parentheses e.g. (4,527).) $