# Accounting 102 help

 1. Grace sells miniature digital cameras for \$250 each. 1,000 units were sold in May, and it forecasts 4% growth in unit sales each month.

 (a) Determine the number of camera sales for the month of June.
 (b) Determine the dollar amount of camera sales for the month of June.

2.

 Electro Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending finished goods inventory for the first quarter will be 138,300 units. The following unit sales of the transmissions are expected during the rest of the year: second quarter, 461,000 units; third quarter, 339,000 units; and fourth quarter, 448,500 units. Company policy calls for the ending finished goods inventory of a quarter to equal 30% of the next quarter’s budgeted sales. (Ending inventory for the first quarter does not comply with company policy.)

 Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture.

3.

 Hospitable Co. provides the following sales forecast for the next four months:

 April May June July Sales (units) 580 660 610 610

 The company wants to end each month with ending finished goods inventory equal to 20% of next monthâ€™s sales. Finished goods inventory on April 1 is 116 units. Assume Julyâ€™s budgeted production is 620 units. Assume each finished unit requires five pounds of raw materials and the company wants to end each month with raw materials inventory equal to 40% of next monthâ€™s production needs. Beginning raw materials inventory for April was 1,192 pounds.

 Prepare a direct materials budget for April, May, and June.

4.

 Rad Co. provides the following sales forecast and production budget for the next four months:

 April May June July Sales (units) 670 750 700 770 Budgeted production (units) 610 740 710 710

 The company plans for finished goods inventory of 290 units at the end of June. In addition, each finished unit requires five pounds of raw materials and the company wants to end each month with raw materials inventory equal to 20% of next monthâ€™s production needs. Beginning raw materials inventory for April was 610 pounds. Each finished unit requires 0.50 hours of direct labor at the rate of \$16 per hour. The company budgets variable overhead at the rate of \$20 per direct labor hour and budgets fixed overhead of \$9,700 per month.

 1 Prepare a direct labor budget
 2 Prepare a factory overhead budget.

5.

 Gelato Supremo is a popular neighborhood gelato shop. The company has provided the following data concerning its operations:

 FixedElementper Month VariableElementper Liter ActualTotal forJuly Revenue \$ 13.60 \$ 73,940 Raw materials \$ 4.50 \$ 25,340 Wages \$ 4,500 \$ 1.10 \$ 10,770 Utilities \$ 1,860 \$ 0.10 \$ 2,255 Rent \$ 3,190 \$ 3,190 Insurance \$ 1,940 \$ 1,940 Miscellaneous \$ 530 \$ 0.10 \$ 1,167

 While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be \$4,500 plus \$1.10 per liter of gelato sold, and the actual wages for July were \$10,770. Gelato Supremo expected to sell 5,300 liters in July, but actually sold 5,200 liters.

 Required: Prepare a report showing Gelato Supremo revenue and spending variances for July. (Input all amounts as positive values. Leave no cells blank – be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance).)

 Gelato SupremoRevenue and Spending VariancesFor the Month Ended July 31 FlexibleBudget ActualResults Revenue and SpendingVariances Revenue \$ Expenses: Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income \$

6.

 Harmon Household Products, Inc., manufactures a number of consumer items for general household use. One of these products, a chopping board, requires an expensive hardwood. During a recent month, the company manufactured 4,000 chopping boards using 2,880 board feet of hardwood. The hardwood cost the company \$19,008.
 The companyâ€™s standards for one chopping board are 0.62 board feet of hardwood, at a cost of \$7.00 per board foot.

 Required: 1a. According to the standards, what cost for wood should have been incurred to make 4,000 chopping blocks?

 Total standard cost \$

 2 Break down the difference computed in (1) above into a materials quantity variance and a materials price variance.(Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank – be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance)

 Materials quantity variance \$ Materials price variance \$

7.

 AirMeals, Inc., prepares in-flight meals for a number of major airlines. One of the companyâ€™s products is stuffed cannelloni with roasted pepper sauce, fresh baby corn, and spring salad. During the most recent week, the company prepared 14,000 of these meals using 2,760 direct labor-hours. The company paid these direct labor workers a total of \$27,186 for this work, or \$9.85 per hour.
 According to the standard cost card for this meal, it should require 0.20 direct labor-hours at a cost of \$9.60 per hour.

 Required: 1a. According to the standards, what direct labor cost should have been incurred to prepare 14,000 meals?

 Total standard direct labor cost \$

 2 Break down the difference computed in (1) above into a labor efficiency variance and a labor rate variance. (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank – be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance.)

 Labor efficiency variance \$ Labor rate variance \$

8.

 World Company expects to operate at 80% of its productive capacity of 61,250 units per month. At this planned level, the company expects to use 29,400 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate based on direct labor hours. At the 80% capacity level, the total budgeted cost includes \$47,040 fixed overhead cost and \$355,740 variable overhead cost. In the current month, the company incurred \$390,000 actual overhead and 26,400 actual labor hours while producing 46,000 units.

 (1) Compute the overhead volume variance. (Round all your intermediate calculations to 2 decimal places.)
 (2) Compute the overhead controllable variance.