Digregory makes all purchases on account, subject to the following payment patte
ID: 2569229 • Letter: D
Question
Digregory makes all purchases on account, subject to the following payment pattern:
Paid in the month of purchase: 25%
Paid in the first month following purchase: 55%
Paid in the second month following purchase: 20%
If purchases for January, February, and March were $210,000, $190,000, and $240,000, respectively, what were the firm's budgeted payments in March?
$60,000.
$132,000.
$164,500.
$206,500.
Some other amount.
Wolverine, Inc. began operations on January 1 of the current year with a $11,900 cash balance. 50% of sales are collected in the month of sale; 50% are collected in the month following sale. Similarly, 10% of purchases are paid in the month of purchase, and 90% are paid in the month following purchase. The following data apply to January and February:
If operating expenses are paid in the month incurred and include monthly depreciation charges of $2,400, determine the change in Wolverine's cash balance during February.
$4,650 increase.
$7,050 increase.
$14,200 increase.
$16,600 increase.
Some other amount.
Newbill Enterprises recently used 31,000 labor hours to produce 9,800 completed units. According to manufacturing specifications, each unit is anticipated to take 3.05 hours to complete. The company's actual payroll cost amounted to $582,800. If the standard labor cost per hour is $19.20, Newbill's labor rate variance is:
$8,912U.
$12,200F.
$8,912F.
$12,400U.
$12,400F.
None of these.
Dover Enterprises recently used 19,000 labor hours to produce 5,000 completed units. According to manufacturing specifications, each unit is anticipated to take two hours to complete. The company's actual payroll cost amounted to $222,300. If the standard labor cost per hour is $11.4, Dover's labor rate variance is (Do not round intermediate calculations.):
$5,700U.
$5,700F.
$5,800U.
$5,800F.
None of these.
Alexis Company recently completed 12,200 units of its single product, consuming 37,000 labor hours that cost the firm $621,600. According to manufacturing specifications, each unit should have required 3 hours of labor time at $17.20 per hour.
On the basis of this information, determine Alexis's labor rate variance and labor efficiency variance.
Choice A
Choice B
Choice C
Choice D
Choice E
January February Sales $ 34,000 $ 54,000 Purchases 29,500 39,000 Operating expenses 6,900 8,900Explanation / Answer
As multiple questions have been asked only 1 can be answered at a time 1 March January purchases 42000 =210000*20% February purchases 104500 =190000*55% March purchases 60000 =240000*25% Total 206500 Option 4 is correct