Each unit is expected to sell for 10 Credit sales are expected to comprise 90

# Each unit is expected to sell for 10 credit sales are

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Each unit is expected to sell for \$10. Credit sales are expected to comprise 90% of total sales. Collections for credit sales are expected to be 50% in the month of sale, 35% in the month following the sale and 15% in the second month following the sale.Required: a.Prepare production budgets in unitsfor July, August, and September. (6 pts)b.Prepare a purchases budget in poundsfor July, August, and September, and give total purchases in both pounds and dollarsfor each month. (6 pts)c.What are totalcash collections expected in the month of September? (4 pts)11
ACC 312 Midterm II12
ACC 312 Midterm II13
ACC 312 Midterm II2. (14 points) Hermosa Enterprises recently experienced a fire, forcing the company to use incomplete information to analyze operations. Consider the following data and assume that all materials purchased during the period were used in production: Direct materials:Standard price per pound: \$9Actual price per pound: \$8Price variance: \$20,000FTotal of direct-material variances: \$2,000FDirect labor:Actual hours worked: 40,000Actual rate per hour: \$15Efficiency variance: \$28,000FTotal of direct-labor variances: \$12,000UHermosa completed 12,000 units during the period.Required:Determine the following:(1) actual materials used, ______________(2 pts)(2) direct-material quantity variance, ______________(3 pts)(3) direct-labor rate variance, ______________(3 pts)(4) standard labor rate per hour, ______________(3 pts)(5) standard labor time per finished unit. ______________(3 pts)1. Actual materials used: 20,000 pounds2. Direct-material quantity variance: \$18,000U3. Direct-labor rate variance: \$40,000U4. Standard labor rate per hour: \$145. Standard labor time per finished unit: 3.5 hours (42,000 hours 12,000 units)14
ACC 312 Midterm II3. (10 points) The Denver Lions are a semi-pro football team. They budget the ticket sales prices to be \$45 per spectator per game. Budgeted fixed costs total \$300,000 for the year; variable costs are expected to average \$5 per spectator. The semi-pro football team uses flexible budgeting. A. Prepare a flexible budget that shows (in detail) the expected costs of 8,000, 8,500, and 9,000 spectators. (3 points)B. Construct the team’s flexible budget formula. (2 points)C. Assume that 8,700 spectators attended games during the year just ended, and actual costs were: variable, \$42,000; fixed, \$307,500. Help analyze the team's financial performance by computing variances for variable costs, fixed costs, and total costs. Use 8,700 as the activity level. (3 points)D. Assume that the actual ticket sales price was \$40 per spectator. If 8,700 spectators attended the games during the year what is the sales price variance? (2 points)15
ACC 312 Midterm IIA.8,0008,5009,000Variable Costs40,00042,50045,000Fixed Costs300,000300,000300,000Total\$340,000\$342,500\$345,000B. Total Budgeted Cost = (number of spectators x \$5) +\$300,000C.BudgetActualVarianceVariable Costs43,50042,0001,500 FFixed Costs300,000307,5007,500 UTotal\$343,500\$349,500\$6,000 U5* 8700 = 43,500DBudgetActualVarianceSales391,500348,00043,500 UNF16
ACC 312 Midterm II4. (10 points) The Orange & White Company manufactures colorful wheels for a battery-powered lawnmower. Revenues and expenses are budgeted as listed below, based on sales of 80,000 sets (4 wheels per set). For your calculations, consider a set as one “unit”.

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