DeVry University, Keller Graduate School of Management - BUSN 278FINALS8. Graded A

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(TCO 7) Roswell Company has budgeted sales revenue as follows for the next 4 months as follows: February $150,000 March $120,000 April $105,000 ... May $165,000 Past experience indicates that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in the month of sale, 35% in the month following the sale, and 3% in the second month following the sale. The other 2% is uncollectible. Prepare a schedule which shows expected cash receipts from sales for the month of May. (TCO 7) The management of Horton Company estimates that credit sales for August, September, October, and November will be $270,000, $375,000, $420,000, and $240,000, respectively. Experience has shown that collections are made as follows: In month of sales 25% In first month after sale 60% In second month after sales 10% Determine the collections from customers in October and November. Show all computations (TCO 8) Eastern Company’s budgeted and actual sales for 2009 were: Part (a) Calculate the sales volume variance. Part (b) Calculate the sales price variance Part (c) Calculate the total sales variance (TCO 8) Northern Company’s budgeted and actual sales for 2009 were: Part (a) Calculate the sales volume variance. Part (b) Calculate the sales price variance Part (c) Calculate the total sales variance (TCO 9) The Mays Clinic has the following monthly telephone records and costs: Identify the fixed and variable cost elements using the high-low method. (TCO 9) Herbart Company gathered the following information on power costs and factory machine usage for the last six months: Part (a) What is the estimated variable portion of power costs per factory machine hour? Part (b) What is the estimated fixed power cost each month? Part (c) If it is estimated that 10,000 factory machine hours will be run in July, what is the expected total power cost for July? Machine VC (TCO 6) Hyde Inc. is comparing several alternative capital budgeting projects as shown below: [Show More]

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