[The following information applies to the questions displayed below.]

Trico Company set the following standard unit costs for its single product.

The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 57,000 units per quarter. The following flexible budget information is available.

During the current quarter, the company operated at 90% of capacity and produced 51,300 units of product; actual direct labor totaled 304,800 hours. Units produced were assigned the following standard costs.

Actual costs incurred during the current quarter follow.

(a) Compute the variable overhead spending and efficiency variances. (Round "cost per unit" and "rate per hour" answers to 2 decimal places.)

(b) Compute the fixed overhead spending and volume variances. (Round "cost per unit" and "rate per hour" answers to 2 decimal places.)



(c) Compute the total overhead controllable variance.

Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. @ $5.10 per Ib.) $ 153.00 Direct labor (8 hrs. @ $14 per hr.) 112.00 Factory overhead—variable (8 hrs. @ $6 per hr.) 48.00 Factory overhead—fixed (8 hrs. @ $12 per hr.) 96.00 Total standard cost $ 409.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 52,000 units per quarter. The following flexible budget information is available. Operating Levels 70% 80% 90% Production in units 36,400 41,600 46,800 Standard direct labor hours 291,200 332,800 374,400 Budgeted overhead Fixed factory overhead $ 3,993,600 $ 3,993,600 $ 3,993,600 Variable factory overhead $ 1,747,200 $ 1,996,800 $ 2,246,400 During the current quarter, the company operated at 90% of capacity and produced 46,800 units of product; actual direct labor totaled 370,400 hours. Units produced were assigned the following standard costs. Direct materials (1,404,000 Ibs. @ $5.10 per Ib.) $ 7,160,400 Direct labor (374,400 hrs. @ $14 per hr.) 5,241,600 Factory overhead (374,400 hrs. @ $18 per hr.) 6,739,200 Total standard cost $ 19,141,200 Actual costs incurred during the current quarter follow. Direct materials (1,385,000 Ibs. @ $6.70 per lb.) $ 9,279,500 Direct labor (370,400 hrs. @ $11.50 per hr.) 4,259,600 Fixed factory overhead costs 3,196,600 Variable factory overhead costs 3,016,800 Total actual costs $ 19,752,500

(a) Compute the variable overhead spending and efficiency variances. (Round "cost per unit" and "rate per hour" answers to 2 decimal places.)

AH = Actual Hours
SH = Standard Hours
AVR = Actual Variable Rate
SVR = Standard Variable Rate

(b) Compute the fixed overhead spending and volume variances. (Round "cost per unit" and "rate per hour" answers to 2 decimal places.)

(c) Compute the total overhead controllable variance.

Using the records below, provide the information requested. Figures below relate to Poppy’s Products’ inventory of t-shirts during the first quarter of 2005. On February 5, a customer purchased 900 t-shirts for $15 each. Two weeks later, Poppy’s sold 600 shirts for $14 each.

NOTE: Two copies of identical information are provided below:

DATE     ACTIVITY UNITS COST/UNIT   TOTAL

Jan. 1    Inventory    700    $7.40    $ 5,180

Jan. 21   Purchase    800    $6.00      4,800

Feb. 10   Purchase 1,200    $6.60     7,920

Mar. 15   Purchase     500    $6.25     3,125

DATE ACTIVITY UNITS COST/UNIT   TOTAL

Jan. 1    Inventory    700    $7.40    $ 5,180

Jan. 21   Purchase    800    $6.00      4,800

Feb. 10   Purchase 1,200    $6.60     7,920

Mar. 15   Purchase     500    $6.25     3,125

(A.) Determine the following amounts if Poppy’s had used the periodic LIFO method:

Cost of Goods Sold: $________________   Ending Inventory: $________700________

(B.) Determine the following amounts if Poppy’s had used the periodic average cost method:

Cost of Goods Sold: $________________   Ending Inventory: $________________

Access EDGAR at the following internet address: www.sec.gov. Study the website to be able to access the financial statements of Cisco Systems Inc. Locate the company’s most recent 10Q report and answer the following questions: a. What is business address of Cisco Systems? b. Locate the balance sheet in Form 10Q and determine if the amount of company’s cash increased or decreased in most recent quarters. c. Locate the income statement. What’s the company’s net income in most recent quarter? d. Access Cash Flow statement and share your observations. e. Any other observations that you would like to share?

You are the Controller for the Window Blinds Company (WBC), a firm that makes wooden window blinds. Your firm just reached an agreement with the local Home Depot to begin selling your products on a test basis in their store for the months of April, May and June 2020 (second quarter). Management expects sales to increase as a result of this test and you realize that a sufficient quantity of product must be produced to avoid stock outs.

You have requested your Accounting Manager to prepare a Master Budget for the second quarter of 2020 (April, May and June) to assist in managing operations, determining how much material needs to be ordered, and how much labor will be required.

In addition, you also requested the Accounting Manager to prepare a pro-forma income statement for the 2^nd Quarter (April, May and June) that will to be used in evaluating the results of the test program.

You should prepare your budgets and income statement using Excel. The attached format for the Excel spreadsheet must be used. The completed worksheet must contain formulas and cell references for all calculations.

Information

Sales and Cash Collection Information

WBC sales staff have prepared a schedule of the budgeted sales for the months of January through December 2019. Expected unit sales for the months of 2019 are listed below:

WBC sells the blinds to Home Depot and its other customers at a price of $40 each. WBC sells all the blinds on account and expects to collect 60% of the cash in the month of the sale and 40% in the month after the sale.

Production and Material Budget Information

Finished Goods

Window Blinds Company (WBC) manufactures window blinds from wood. Each blind uses 3 feet of “high-quality” teak hardwood, which costs WBC $3 per foot.   WBC likes to end the month with a finished goods inventory equal to 30% of the planned sales for the next month.

Raw Materials

In addition to the finished goods inventory, WBC also has an inventory of Teak wood in a climate controlled warehouse. WBC like to have in its warehouse a beginning inventory equal to 40% of the teak wood it will need for the month’s production.

WBC pays for the material it purchases in the month of purchase.

Labor Budget Information

WBC pays its workers $11 per hour and each blind takes 1 hour of labor to complete. All wages are paid in the month incurred.

Manufacturing Overhead Information

Total manufacturing overhead is estimated to be $94,500. Manufacturing Overhead is applied equally to each product produced.

Overhead is paid in the month incurred.

Selling and Administrative Costs

Selling and administrative expenses are a combination of fixed and variable costs. Fixed Selling and Administrative costs are estimated at $8,000 per month and variable selling and administrative costs are $5.00 per unit sold.

Selling and administrative costs are paid in the month incurred.

Cash Management

WBC starts the month of April with $2,000 in the bank. Management would like to maintain a minimum of $10,000 in the bank. WBC just opened a line of credit with the bank that they can draw upon on the last day of the month. Interest is paid at the end of the month and the line of credit can be paid back in any increment. Interest is charged at 1% per month on the outstanding balance borrowed.

Required:

1. Prepare the following for WBC for the second quarter of the year (April, May, June).   Include each month in your projections as well as the 2^nd Quarter totals for each budget.

1. Sales Budget
2. Production Budget
3. Raw Materials Purchases Budget
4. Direct Labor Budget
5. Manufacturing Overhead Budget
6. Budgeted Cost of Cost of Goods Sold
7. Selling and Administrative Expenses Budget
8. WBC’s Pro Forma Income Statement for the 2^nd Quarter.
9. Cash Budget for the 2^nd Quarter

2. In addition answer the following questions.

1. What will be the number of units and the cost of the Raw Materials and Finished Goods   ending inventories that will appear on the Balance Sheet at the End of the 2^nd Quarter?

2. What will be the balance in Accounts Receivable at the end of the 2^nd Quarter?

3. Will WBC need to consider borrowing any cash from a bank during the 2^nd Quarter?

The beginning cash balance is $2,000 and WBC would like to end each month with $10,000 in the bank.

To accomplish this, how much should be borrowed and how much will WBC owe the bank on June 30?

Question: Go to the website of Statistics Canada and find data on the consumer price index for Ontario. By how much has the index for each product group and also including all items risen over the years from 2015 to 2017? For which categories of spending have prices risen the most/the least from 2015 to 2017? How much is the percent price change for each category of spending from 2015 to 2017? Have any categories experienced price declines? Explain any of these facts, e.g., explain the reasons of CPI changes (from 2015 to 2017) for each category. Present the CPI data in a table over the years 2014 to 2018 for the province of Ontario.

Omaha LLC had the following inventory amounts:

12/31/2019 3/31/2020

Raw materials 3052 3135  

WIP 3771 3804

Finished goods 2251 2175

During Q1 2020, the company transferred $4294 of raw materials. to WIP. In addition, the firm incurred the following costs during the quarter: direct labor of $2584, variable manufacturing overhead of $2180, fixed manufacturing overhead of $2190, variable non-manufacturing overhead of $2027, and fixed non-manufacturing overhead of $2607. Omaha uses full absorption costing.

a.How much raw materials did Omaha purchase in Q1 2020?

b.How much is Omaha's cost of goods manufactured?

c.Notwithstanding your answer to the prior question, assume the cost of goods manufactured is $9525. How is much is the cost of goods sold?

Vertical Analysis of Income Statement

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

State the hypotheses. Describe a Type I and Type II error in the context of the problem and a consequence of each. Determine which type is most serious. State whether alpha should be set high or low (based on whether or not you feel a Type I error is the most serious or not).

The state of Georgia is considering spending $350 million on a computerized mathematics curriculum that for grades 3 – 10. They pilot the program with 250 students in grades 5 and 6 whose end-of-course test scores are compared to the state average score of 150.