| DeVry University |
| ACCT346 Weekly Assignment |
| Week 6 |
| Directions: Your assignment this week is to answer the two questions below. Please note that Question #2 has 2 parts, Part A and Part B. Please show your work for full credit and use the box provided. Please add more rows or columns to the box if needed. |
| 1. Cave Hardware's forecasted sales for April, May, June, and July are $200,000, $230,000, $190,000, and $240,000, respectively. Sales are 65% cash and 35% credit with all accounts receivables collected in the month following the sale. Cost of goods sold is 75% of sales and ending inventory is maintained at $60,000 plus 10% of the following month's cost of goods sold. All inventory purchases are paid 22% in the month of purchase and 78% in the following month. |
| What are the cash collections budgeted for June? |
| 2. Madden Corporation manufactures t-shirts, which is its only product. The standards for t-shirts are as follows: |
| Standard direct labor cost per hour | $17 |
| Standard direct labor hours per t-shirt | 0.6 |
| During the month of January, the company produced 1,250 t-shirts. Related production data for the month is as follows: |
| Actual direct labor hours | 770 |
| Actual direct labor cost incurred | $13,000 |
| 2a. What is the direct labor rate variance for the month? Is it favorable or unfavorable? |
| 2b. What is the direct labor efficiency variance for the month? Is it favorable or unfavorable? |
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acct346_week_6_assignment.xlsx
