Question

Tyler Corp has the following budgeted sales for the first 4 months of nest year Cash sales Credit sales January $80,000 $350,000 $430,000 February $60,000 $200,000 $260,000 March $50,000 $145,000 $195,000 April $45,000 $130,000 $175,000 Total sales The Company is in the process of preparing a cash budget and must determine the expected cash collections Accoedingly, the following information has been assembled: Collections on credit sales: Month of sale Month after sale 2nd month after sale 60% 30% 10% The accounts receivable balance on January 1 is: $155,000 Of this amount, $132,000 represents uncollected December sales and $23,000 represents uncollected November sales. 14 The total cash collected in January would be: $412,000 $445,000 $389,000 $346,000 E. None of the above A. В. C. D. 15 Hayes Corporation uses machine hours (MHs) as its denominator activity for fixed manufacturing overhead (FMOH).E the most recent year, the company showed the following data. 280,000 39,000 Favorable $ $ $ Actual FMOH cost FMOH Budget Variance FMOH Volume Variance Standard MHs allowed for actual output 11,000 Favorable 600,000 MHs The budgeted MHs for Hayes was closest to: 621,429 MHs 573,810 MHs 628,696 MHs 580,000 MHs None of the above A. В.

Answer 1

Answer $412,000 A 14) Total Cash collected in January Cash Sales - January Cash Collected from Credit Sales of January $ 350000 60%) of December ($ 132000*30%/40%) $ 80,000 210,000 99,000 $ 23,000 $ of November 332,000 $ Total 412,000 Note The total portion of December uncollectable represents the total cash to be collected for the month's of January and February. Hence $ 132000 represents the 40%, from which 30% portion will be collected in the month of January.

580000 MHs Budgted Machine Hours 15) D Budgeted FMOH Budgeted machine Hours FMOH aborption rate per Machine Hour Budgeted machine Hours *$ 0.55 $319000 / $0.55 319000 Budgeted Machine Hours 580000 Working Notes Budgeted FMOH Budgeted FMOH Actual FMOH Budgeted FMOH - $280000 $39000$280000 FMOH Budget variance $39000 favourable Budgeted FMOH 319,000 Absorbed FMOH FMOH Volume variance Absorbed FMOH Budgeted FMOH $11000 favourable Absorbed FMOH - $319000 $11000$319000 Absorbed FMOH 330,000 Absorbed FMOH Standard hours allowed for actual production FMOH aborption rate per Machine Hour $330,000 600000 FMOH aborption rate per Machine Hour $330000/600000 = FMOH aborption rate per Machine Hour $ 0.55 Activa