Joy Manufacturing Company needs to know its anticipated cash inflows for the nex
ID: 2568475 • Letter: J
Question
Joy Manufacturing Company needs to know its anticipated cash inflows for the next quarter by month. Cash sales are 25 percent of total sales each month. Historically, sales on account have been collected as follows: 50 percent in the month of the sale, 30 percent in the month after the sale, and the remaining 20 percent two months after the sale.
Gross sales for the quarter are projected as follows:
January
$20,000
February
$10,000
March
$40,000
Accounts receivable on December 31 were $30,000.
Joy's expected cash collections for March would be:
A.
$37,000
B.
$32,000
C.
$30,250
D.
$47,200
The management of Green Energy Manufacturing is analyzing variable overhead variances for the fiscal period just ended. The flexible budget called for $176,000 in variable overhead but actual variable overhead was $100,000. In computing the overhead variances, Green’s management discovered that it had used 40,000 pounds of direct material, rather than the budgeted amount of 44,000 pounds. (Pounds of direct material is the single overhead driver of variable overhead). The standard variable overhead rate per pound of direct material is $2.00.
What is Green's variable overhead efficiency variance?
A.
$ 8,000 (U)
B.
$16,000 (F)
C.
$24,000 (U)
D.
$ 8,000 (F)
January
$20,000
February
$10,000
March
$40,000
Explanation / Answer
Joy Manufacturing Company
Answer: Option C. $30,250
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