Acct434 Advanced Cost Management: Week 2 Homework (Picture Pretty, Russell Company, Tylon’s Hardware)

Acct344 Devry Cost AccountingWeek 2 Homework Problem 1 Picture Pretty manufactures picture frames. Sales for August are expected to be 10,000 units of various sizes. Historically, the average frame requires four feet of framing, one square foot of glass, and two square feet of backing. Beginning inventory includes 1,500 feet of framing, 500 square feet of glass, and 500 square feet of backing. Prices are $0.30 per foot of framing, $6.00 per square foot of glass, and $2.25 per square foot of backing. Ending inventory should be 150% of beginning inventory. Purchases are paid for in the month acquired. Question 1: Determine the quantity of framing, glass, and backing that is to be purchased during August. Question 2: Determine the total costs of direct materials for August purchases. Problem 2 Russell Company has the following projected account balances for June 30, 20X2:Accounts payable 40,000 Sales 800,000Accounts receivable 100,000 Capital stock 400,000Depreciation, factory 24,000 Retained earnings ?Inventories (5/31 & 6/30) 180,000 Cash 56,000Direct materials used 200,000 Equipment, net 240,000Office salaries 80,000 Buildings, net 400,000Insurance, factory 4,000 Utilities, factory 16,000Plant wages 140,000 Selling expenses 60,000Bonds payable 160,000 Maintenance, factory 28,000Question 1: Calculate the budgeted net income for June 20X2.Question 2: Calculate the budgeted total assets as of June 30, 20X2. Problem 3 Tylon’s Hardware uses a flexible budget to develop planning information for its warehouse operations. For 20X2, the company anticipated that it would have 96,000 sales units for 664 customer shipments. Average storage bin usage for various inventories was estimated to be 200 per day. The costs and cost drivers were determined to be as follows: Item Fixed Variable Cost driverProduct handling 10,000 1.25 per 100 unitsStorage – 3.00 per storage binUtilities 1,000 1.50 per 100 unitsShipping clerks 1,000 1.00 per shipmentSupplies – 0.50 per shipmentDuring the year, the warehouse processed 90,000 units for 600 customer shipments. The workers used 225 storage bins on average each day to sort, store, and process goods for shipment. The actual costs for 20X2 were: Item Actual costs Product handling 10,900 Storage 465 Utilities 2,020 Shipping clerks 1,400 Supplies 340 Question 1: Determine the 20X2 static budget variances Question 2: Determine the 20X2 flexible budget variances.