Acc561 Introduction to Management Accounting: Week 5 Exercises (E20-2, E20-5, BE21-4, E22-5)

Acc561 Introduction to Management Accounting
Week 5 Individual Assignment Exercise (E20-2, E20-5, BE21-4, E22-5)

E20-2
Zeller Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $12 and $25, respectively. Because of the intense competition Zeller faces, management budgets sales semiannually. Its projections for the first 2 quarters of 2010 are as follows. Unit Sales Product Quarter 1 Quarter 2 XQ- 103 20,000 25,000 XQ-104 12,000 15,000 No changes in selling prices are anticipated.
Complete the sales budget for the 2 quarters ending June 30, 2010.
List the products and show for each quarter and for the 6 months, units, selling price, and total sales by product and in total.

E20-5 Moreno Industries has adopted the following production budget for the first 4 months of 2011. Month Units Month Units January 10,000 March 5,000 February 8,000 April 4,000 Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2010, the ending raw materials inventory was 9,000 pounds. Management wants to have a raw materials inventory at the end of the month equal to 30% of next month's production requirements.

Prepare a direct materials purchases budget by month for the first quarter.

BE21-4 Hannon Company expects to produce 1,200,000 units of Product XX in 2010. Monthly production is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $6, and overhead $8. Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision are $1.
Complete the flexible manufacturing budget for the relevant range value using 20,000 unit increments.

E22-5 The standard cost of Product B manufactured by Mateo Company includes three units of direct materials at $5.00 per unit. During June, 28,000 units of direct materials are purchased at a cost of $4.70 per unit, and 28,000 units of direct materials are used to produce 9,000 units of Product B

Instructions:
a. Compute the total materials variance and the price and quantity variances.
b. Repeat the question above, assuming the purchase price is $5.20 and the quantity purchased and used is 26,200 units.
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