A company began April with $105,000 in accounts April, May and June, 70% of thes

Question

A company began April with $105,000 in accounts April, May and June, 70% of these after they are made. sales are generally collected in the month in which they are made, 20% in the following month, and the remainder two months 24-1 Based on this, how much cash should be collected in the second quarter? s 024-2 3 What should be the balance in accounts receivable at the end of June? $ At a production level of 10,000 units total costs In the month of July. 12,500 units were actually produced and the costs were $2 what was the amount of the total cost variance? Was the variance favorable or unfavorable? hould be $210,000 which consists of variable costs of $140,000 and fixed costs of $TO,000 48,000. JQ25-1 025-2 S The standard cost of a pound of materials is $4.50. To produce a unit of a product, 3 pounds of materials are required t 40,000 units were produced requiring 121,250 pounds of materials costing $528,850, Indicate whether the variance is favorable or unfavorable 2 Q26-1 2Q26-2 a26-3 What was the materials price variance for the month? What was the materials quantity variance for the month? s what was th. total materials variance for the month? What are the two types of factory overhead variances? 2 027-1 2 Q27-2 2 0273 Give an example of an overhead cost which would be variable?

Explanation / Answer

Q24-1 Cash collected in the second quarter: Beginning balance of accounts receivable 105000 April sales-200000 70% in the same month 140000 20% in the next month 40000 10% Two months after 20000 May sales-240000 70% in the same month 168000 20% in the next month 48000 June sales-255000 70% in the same month 178500 Cash collected in the second quarter 699500 Q24-2 Balance in accounts receivable: May sales-240000 10% Two months after 24000 June sales-255000 20% in the next month 51000 10% Two months after 25500 Balance in accounts receivable 100500 Q25-1 Variable cost per unit=140000/10000=$14 per unit Fixed cost is same for all levels=$70000 Expected total cost for 12500 units=(12500*14)+70000=245000 Actual total cost=248600 Total cost variance=248600-245000=3600 Q25-2 Since actual cost is more than expected cost variance is unfavorable. Q26-1 Material price variance=Actual material consumed*(Standard price-Actual price) Actual price=528650/121250=$4.36 per unit Material price variance=121250*(4.50-4.36)=16975 F Q26-2 Material quantity variance=(Standard material required-Actual material consumed)*Standard price Standard material required=Actual production*Standard material per unit=40000*3=120000 pound Material quantity variance=(120000-121250)*4.50=5625 U Q26-3 Total material variance=Material price variance+Material quantity variance=16975-5625=11350 F. Q27-1 Factory overhead spending variance Q27-2 Factory overhead efficiency variance Q27-3 Manufacturing supplies

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