Week 5 Wiley Plus Problems
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.
ZELLER ELECTRONICS INC.
Sales Budget
For the Six Months Ending June 30, 2010
Quarter 1
Product Units Selling Price Total Sales
XQ-103 20,000 $12 $240,000
XQ-104 12,000 25 300,000
Totals 32,000 $540,000
Quarter 2
XQ-103 25,000 $12 $300,000
XQ-104 15,000 25 375,000
Totals 40,000 $675,000
Six Months
XQ-103 45,000 $12 $540,000
XQ-104 27,000 25 675,000
Totals 72,000 $1,215,000
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.
Compute the total materials variance and the price and quantity variances.
Total materials variance $ ____
Materials price variance $ ____
Materials quantity variance $ ____
Repeat (a), assuming the purchase price is $5.20 and the quantity purchased and used is 26,200 units.
Total materials variance $ ____
Materials price variance $ ____
Materials quantity variance $ ____
SP=$5 (given)
SQ=27000 (9000@3per)
AP=$4.7(given)
AQ=28000 (given)
Now, price variance is AQ(SP-AP), or 28000($.3)=$8400 (This is favorable, since the materials were obtained at below average cost.)
Quantity variance is SP(SQ-AQ), or $5(-1000)=-$5000. (This is unfavorable,
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.
ZELLER ELECTRONICS INC.
Sales Budget
For the Six Months Ending June 30, 2010
Quarter 1
Product Units Selling Price Total Sales
XQ-103 20,000 $12 $240,000
XQ-104 12,000 25 300,000
Totals 32,000 $540,000
Quarter 2
XQ-103 25,000 $12 $300,000
XQ-104 15,000 25 375,000
Totals 40,000 $675,000
Six Months
XQ-103 45,000 $12 $540,000
XQ-104 27,000 25 675,000
Totals 72,000 $1,215,000
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.
Compute the total materials variance and the price and quantity variances.
Total materials variance $ ____
Materials price variance $ ____
Materials quantity variance $ ____
Repeat (a), assuming the purchase price is $5.20 and the quantity purchased and used is 26,200 units.
Total materials variance $ ____
Materials price variance $ ____
Materials quantity variance $ ____
SP=$5 (given)
SQ=27000 (9000@3per)
AP=$4.7(given)
AQ=28000 (given)
Now, price variance is AQ(SP-AP), or 28000($.3)=$8400 (This is favorable, since the materials were obtained at below average cost.)
Quantity variance is SP(SQ-AQ), or $5(-1000)=-$5000. (This is unfavorable,