405
E13–11
A B C
1 NUTTY CANDY COMPANY
2 Factory Overhead Cost Budget
3 For the Month Ending August 31
4 Variable factory overhead costs:
5 Manufacturing supplies $ 45,000
6 Power and light 28,000
406
E13–12
A B C D
1 PUEBLO CERAMICS INC.
2 Cost of Goods Sold Budget
3 For the Month Ending April 30
4 Finished goods inventory, April 1 $ 10,000
5 Work in process inventory, April 1 $ 11,400
6 Direct materials:
7 Direct materials inventory, April 1 $ 13,000
407
E13–13
A B C D
1 PET STOP INC.
2 Schedule of Collections from Sales
3 For the Three Months Ending July 31
4 May June July
5 May sales on account:
6 Collected in May ($1,200,000 × 60%) $720,000
E13–14
A B C D
1 INNOVATIVE OFFICE INC.
2 Schedule of Collections from Sales
3 For the Three Months Ending March 31, 20Y4
4 January February March
5 Receipts from cash sales:
6 Cash sales (30% × current month’s sales) $ 360,000 $ 435,000 $ 480,000
7 December sales on account:
8 Collected in January (Accounts
Receivable balance) 180,000
408
E13–15
A B C D
1 TADPOLE LEARNING SYSTEMS INC.
2 Schedule of Cash Payments for Selling and Administrative Expenses
3 For the Three Months Ending May 31
4 March April May
5 March expenses:
1
6 Paid in March ($110,000 × 70%) $77,000
2
3
1
2
3
E13–16
A B C D
1 ORGANIC PHYSICAL THERAPY INC.
2 Schedule of Cash Payments for Operations
3 For the Three Months Ending March 31
4 January February March
5 Payments of prior month’s expense
1
$12,000 $13,500 $15,500
2
1
2
409
E13–17
A B C D E
1 HANDY DAN TOOLS INC.
2 Capital Expenditures Budget
3 For the Four Years Ending December 31, 20Y5–20Y8
4 20Y5 20Y6 20Y7 20Y8
5 Building $5,000,000 $4,000,000 $ 2,250,000
1
2
1
2
E13–18
Direct labor ……………………………………………… $21.00 × 2 hrs. $ 42.00
410
E13–19
a.
A B
1 MCALISTERS BOTTLE COMPANY
2 Manufacturing Cost Budget
3 For the Month Ended May 31
4
Standard Cost at Planned
Volume (800,000 Bottles)
5 Manufacturing costs:
6 Direct labor $22,000
b.
A B C D
1 MCALISTERS BOTTLE COMPANY
2 Manufacturing Costs—Budget Performance Report
3 For the Month Ended May 31
4
Actual
Costs
Standard Cost at
Actual Volume
(750,000 bottles)
Cost Variance—
Unfavorable
(Favorable)
5 Manufacturing costs:
6 Direct labor $21,100 $20,625 $ 475
c. McAlisters Bottle’s actual costs were $750 more than budgeted. The largest
411
E13–20
a. Price variance:
Direct Materials Price Variance = (Actual Price – Standard Price) ×
Actual Quantity
b. The direct materials price variance should normally be reported to the Pur-
chasing Department, which may or may not be able to control this variance. If
412
E13–21
Standard direct materials for units produced (5,900 units × 2 lbs.) …… 11,800 lbs.
Alternate Solution One:
Materials used ………………………………………………………….. 12,000 lbs.
Alternate Solution Two:
413
E13–22
a.
Standard Standard Standard Cost
Quantity × Price = per Batch
Whole tomatoes ………….. 7,500 $0.40 $3,000
b.
Actual
Quantity
for Batch
H3001
Standard
Quantity
per
Batch
Quantity
Difference ×
Standard
Price =
Materials
Quantity
Variance
Tomatoes ……… 7,850 7,500 350 $0.40 $ 140.00 U
414
E13–23
a. Rate variance:
Direct Labor Rate Variance = (Actual Rate per Hour – Standard Rate per Hour)
× Actual Hours
Total direct labor cost variance:
Direct Labor Cost Variance = Direct Labor Rate Variance + Direct Labor Time
Variance
b. The employees may have been less-experienced workers who were paid less