Question 1: What are the four perspectives looked at by the balanced scorecard approach?
Question 2:
Keep-it-Hot, Inc. manufactures popular thermoses. On June 30, the company has 1,000 thermoses in inventory. Each thermos sells for $8.00. The company's policy is to maintain a thermos inventory equal to 10% of next month's sales. The company expects the following sales activity for the third quarter of the year:
July 7,000 units
August 15,000 units
September 10,000 units
In addition, October's sales are expected to be 9,000 units.
Required:
A.Prepare a sales budget for the third quarter of the year.
B.Prepare a production budget for the third quarter of the year.
Question 3:
At the end of the current year, Bowman Products, Inc. has the following information available comparing the cost of direct materials on its flexible budget with the actual costs of direct materials:
Flexible Budget Actual Results Difference
Direct Materials $24,000 $30,000 $(6,000)
Sally V., the company's controller, has requested a meeting with Hank R., the operations manager, asking him to explain why direct materials costs were more than what had been budgeted.
What two kinds of variance analysis should Hank do before his meeting with Sally? What would each of these variances measure?