Our company prepared a Master Budget for planning purposes before the beginning of the year. That budget was for unit sales of 32,000 chairs at a budgeted price of $100 per chair.
Actual sales for the period were 30,000 units totaling $2,910,000. T
What was the total sales budget variance?
How much of the sales budget variance is attributable to a difference in sales price (the Sales Price Variance)?
How much of the sales budget variance is attributable to the difference in sales volume (Sales Volume Variance?

The company paid $3,700 on January 1 of the current year to have advertisements placed in the local monthly neighborhood paper. The ads were to be run from January through June. The bookkeeper debited the full amount to Prepaid Advertising on January 1. 1.Record the adjusting entry for advertisements at March 31 of the current year. 2.Record the adjusting entry for the use of construction equipment during of the current year.

2. Variance Analysis

Nail_It company is a manufacturer of a custom engraved hammers. For the year 2021, the weekly budget was as follows.

• Sales revenue $64,000: 2,000 hammers × price $32
• Variable costs:
  • Direct materials $10,000: 2,000 hammers × 1 lbs per hammer × price $5/lb
  • Direct labour $50,000: 2,000 hammers × 5 hour per hammer × rate $5/hour
  • no variable overhead
• Fixed costs: $3,000
• Profit: $1,000

The actual performance of the week was as follows.

• Sales revenue $70,400: 2,200 hammers × price $32
• Variable costs:
  • Direct materials $13,200: 2,200 hammers × 1 lbs per hammer × price $6/lb
  • Direct labour $46,200: 2,200 hammers × 3 hour per hammer × rate $7/hour
  • no variable overhead
• Fixed costs: $8,000
• Profit: $8,000

Required:

1) Compute the following variances

a) Spending and Volume Variances of Materials

b) Spending and Volume Variances of Labour

c) Spending and Volume Variances of Fixed Overhead

d) Materials Quantity Variance

e) Materials Price Variance

f) Labour Efficiency Variance

g) Labour Rate Variance

2) Nail_It company hired an experienced engineer and asked her to re-organize the production process. How could hiring an experienced engineer and their new production process explain the variances? Please comment on individual components of variances, their relations to other variances, and overall impact on profitability.

In the coming year, Oriole, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $20 to retailers throughout the country. All sales will be made on account. An expected 75% of sales will be collected within the quarter of the sale, and another 20 % in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows:

Prepare Oriole, Inc.'s, cash receipts budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.)

Determine the Net Accounts Receivable at the end of the year. Assume that no accounts have been written off during the year.

A proprietorship commenced operations on May​ 1,2020 and will have a calendar fiscal year. On June​ 1, 2020​, the proprietorship acquired goodwill for $60,000.

What is the maximum CCA deduction of the goodwill for the year 2020​?

For the past year, Anshuman had been working as the head of organizational development and learning for the high-growth regions of Honeywell. This assignment required Anshuman to leave his home country of India to live and work in Shanghai, China. Anshuman couldn’t help but reflect on his boss’s final comment before going home from work the night before: “We can’t afford to give profit and loss responsibility to our strategic business group leaders in these high-growth countries. We have too much riding on the future performance of these markets and can’t risk someone who doesn’t know what they’re doing messing it up.”

Anshuman thought they needed to give the business unit managers the autonomy necessary to make their own strategic decisions. The problem was, in order to make effective decisions, the business unit managers would need to know how to navigate the local market as well as the Honeywell bureaucracy. It was easy finding one or the other, but finding both seemed a bit daunting. Anshuman and his team began exploring the attributes and competencies needed from future leaders.

Honeywell’s HR department has one of the most extensive and thorough archives of data on managers and leaders all over the world. Anshuman and his team started by examining the company’s list of twelve behaviors of and six criteria for successful general managers. These factors consisted of things like “makes people better”, “takes intelligent risk,” and “gets results.” After some exploratory analysis to determine which behaviors were most highly correlated with a person being promoted, the team turned to a more predictive model and examined what managers were saying about employees when they promoted them.

What they found was somewhat surprising. The most successful managers were those who spoke up and communicated with the leadership team in New Jersey, the company’s headquarters. The most important type of communication revolved around understanding the company’s strategy and being able to tie that strategy back to the local environment. This required managers to fly to headquarters and also to invite members from the corporate team to fly to the local subsidiary location.

But communicating with corporate was not enough. Managers needed to have a strong understanding of the movements and shifts in the local environment. For example, if they couldn’t negotiate with local suppliers to get the deals the local buyers were getting, then these managers weren’t able to succeed in their role. They also needed to be willing to take risks by looking for gaps in the market where customers could be using the product for something different than its original intention.

Anshuman had just presented his findings to the head of HR for Honeywell and was given the green light to develop a specific leadership program for managers in high-growth countries, starting with China as the pilot location. He had designed many leadership programs before, but this time much more was at stake.

Case Discussion Questions

1. What specific leadership traits are most important for Honeywell managers in high-growth regions?
2. How do these global leadership traits differ from domestic leadership traits?
3. How would you create a leadership development program for high-growth region managers using the RAP framework?

ArmandArmand

Company projects the following sales for the first three months of the​ year:

$ 12 comma 400$12,400

in

JanuaryJanuary​;

$ 15 comma 900$15,900

in

FebruaryFebruary​;

and

$ 11 comma 100$11,100

in

MarchMarch.

The company expects

6060​%

of the sales to be cash and the remainder on account. Sales on account are collected​ 50% in the month of the sale and​ 50% in the following month. The Accounts Receivable account has a zero balance on

JanuaryJanuary

1. Round to the nearest dollar.

Requirement 1. Prepare a schedule of cash receipts for

ArmandArmand

for

JanuaryJanuary​,

FebruaryFebruary​,

and

MarchMarch.

What is the balance in Accounts Receivable on

MarchMarch

3131​?

​(Leave unused and zero balance account cells​ blank, do not enter​ "0".)

The units of an item available for sale during the year were as follows:
Jan. 1 Inventory 50 units at $115
Feb. 17 Purchase 88 units at $140
July 21 Purchase 35 units at $128
Nov. 23 Purchase 15 units at $155
There are 75 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost by (a) the first-in, first-out method, (b) the last-in, first-out method, and (c) the average cost method.

The Dorset Corporation produces and sells a single product. The following data refer to the year just completed:

Assume that direct labor is a variable cost.

Required:

a. Compute the unit product cost under both the absorption costing and variable costing approaches.

b. Prepare an income statement for the year using absorption costing.

c. Prepare an income statement for the year using variable costing.

d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above.

In deciding whether an increase in accounts receivable during the current year is desirable or undesirable, what factors should management consider