Question

5130.000 Tyler Corp has the following uden her moths of Cash sales January February March Al Credit sales SNOJODO Total sales $350.000 5200,000 $145.000 5430 000 260.000 5195 $195.000 $175.000 The Company is in the process of preparing ach bostad i e expected cash collections. Accordingly, the following information has been a paring a cash budget and must d ble: Collections on credit sales Month of sale 6096 Month after sale 2nd month after sale The accounts receivable balance on January 1 5 143,000 or this amount, S120,000 represents collected December sales and 523.000 represents collected November sales 14 The total cash collected in January would be: $380,000 $343,000 $403.000 $433,000 E. None of the above D 15 Hayes Corporation uses machine hours (MHs) as its denominator activity for fixed manufacturing overhead (FMOH). For the most recent year, the company showed the following data. Actual FMOH cost FMOH Budget Variance FMOH Volume Variance Standard MHs allowed for actual output 280,000 39,000 Favorable 11,000 Favorable 600,000 MHS A The budgeted MHs for Hayes was closest to: 580,000 MHS B. 621,429 MHS 573,810 MHs 628,696 MHs None of the above Page 9 of 12

Answer 1

Ans. 14	Option D $433,000
	Schedule of Cash receipt In January
		January
	Cash receipts from:
	Cash sales	$80,000
	Accounts receivable (from November & December sales)	$143,000
	From January month's credit sales ($350,000 * 60%)	$210,000
	Total budgeted cash receipts	$433,000
Ans. 15	Option A    580,000   MHs
	Fixed overhead budget variance = Budgeted fixed overhead - Actual fixed overhead
	$39,000 = Budgeted fixed overhead - $280,000
	Budgeted fixed overhead   = $280,000 + $39,000
	$319,000
	Fixed overhead volume variance = (Standard machine hours * Budgeted overhead rate) - Budgeted fixed overhead
	$11,000 = (600,000 * Budgeted overhead rate) - $319,000
	600,000 * Budgeted overhead rate = $319,000 + $11,000
	600,000 * Budgeted overhead rate = $330,000
	Budgeted overhead rate   = $330,000 / 600,000
	$0.55 per machine hour
	Budgeted machine hours = Budgeted fixed overhead / Budgeted overhead rate
	$319,000 / $0.55
	580,000 MHs