Problem 1 - Standard and Actual numbers have been provided for Direct Material, Direct Labor and Fixed MO, Variable MO. Calculate all variances indicated and also identify each variance as either Favorable (F) or Unfavorable (U). Standard numbers provided are for 1 unit of final product manufactured.
Round all TOTAL VARIANCES to the nearest dollar for analysis purposes.
Problem 2 - You have been given the sales for a series of months. The collection pattern is at the bottom and indicates 40% collected in the month of the sales, 30% in the next month and the remaining 25% in the third month. Uncollectible amounts are 5% of total monthly sales and ignored. Calculate the amount of cash collections in the Third Quarter.
The columns represent the amounts that will be collected in that particular month.
The rows represent the distribution of cash collections over the collection pattern months, related to the sales in the month listed on each row.
Problem 3 - Calculate the cash flow budget for Empire Enterprises for the 2016 year, on a quarterly basis. All revenue and expense items have been provided. Complete all necessary calculations for the cash budget.
The minimum cash ending balance for each quarter is $50,000. You have a total line of credit available in the amount of $300,000. Interest per quarter is 3% calculated on a simple interest basis and paid only when principal on the loan is repaid, i.e. interest is not accrued.
All borrowings are considered to occur on the first day of a quarter. All repayments are considered to occur on the last day of a quarter. All borrowings/repayments are in increments of $1,000, except for a total payoff where the exact amount is paid. Beginning cash balance on January 1, 2016 will be $70,000.
Problem 4 - Jefferson Digital Diagnostics Products started their annual budget process. You are developing the Production Budget for the 4th quarter of 2016. The monthly sales budgets are given in units. The ending inventory of units has been provided for September. Management desires an ending inventory of 20% of the next month's sales units---raw material supplies from vendors are tight due to insufficient production capacity in suppliers' network.
Calculate the production budget for the 4th Quarter, by month and total.
Problem 5 - Bubbly Brew is specialty beer producer. Beer is produced by the keg. Each keg requires 0.25 DLH to produce. Kegs produced are given.
The base DL pay is $10/hour for hours worked. A 10% pay increase will go into effect April 1. There is no minimum payment for labor cost.
Employees receive a 50% overtime premium on base hourly wage rate for all overtime hours worked. Contract negotiations indicate that all DLH in excess of 5,000/month are subject to overtime pay. You are calculating the base pay and overtime premium in two separate lines and adding them together.
Calculate the DL budget.
Problem 6 - Mays Landing Manufacturing, Inc. produces two products for the high tech industry in its NJ facilities:
The company expects, during the current year, to produce and sell:
|
Product
|
Units
|
|
Product - PD-88
|
423
|
|
Product - ND-76
|
288
|
The company uses activity-based costing to compute unit product costs for external reports. Using the activity-based costing approach, determine the overhead cost per unit for each product.
Data relating to the company's four activity cost pools are shown on the spreadsheet:
|
Activity Cost Pool
|
Estimated
Overhead Costs
|
Expected Activity
Product - PD-88
|
Expected Activity
Product - ND-76
|
|
Purchase orders
|
$24,000
|
46
|
34
|
|
Direct material movement
|
$145,215
|
350
|
280
|
|
Machinery Setups
|
$16,640
|
22
|
10
|
|
General factory
|
$361,800
|
2,080
|
1,940
|
Calculate the Activity Rate for all activity pools.
Calculate the applied ABC costs for both products, given the expected sales above and the actual activity for each product. Determine both the total ABC overhead costs and the overhead cost per unit.
Attachment:- Assignment.rar