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1) Kapital, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $45,000 in January, $55,000 in February, and $65,000 in March. Variable and fixed selling and administrative expenses are as follows: Variable Expenses: Power cost (40% of sales) Miscellaneous expenses: (10% of sales) Fixed Expenses: Salary expense: $10,000 per month Rent expense: $4,000 per month Depreciation expense: $1,400 per month Power cost/fixed portion: $800 per month Miscellaneous expenses/fixed portion: $1,000 per month Calculate total selling and administrative expenses for the month of January.
2) Melissa Antiques Company has collected the following data for one of its products:
| Direct materials standard (4 pounds @ 1/lb.) | $4 per unit |
| Direct materials flexible budgetvariancelong dash—unfavorable | $14,500 |
| Actual direct materials used | 100,000 pounds |
| Actual units produced | 19,000 units |
What is the direct materials efficiency variance?
Expert Answer
| As multiple questions have been asked, only 1 can be answered at a time. | ||||
| 1 | ||||
| Jan | Feb | Mar | ||
| Sales Budget | 45000 | 55000 | 65000 | |
| Operating Expenses Budget | ||||
| Variable operating expenses: | ||||
| Power cost (40% of sales) | 18000 | 22000 | 26000 | |
| Misc. expenses (10% of sales) | 4500 | 5500 | 6500 | |
| Total Variable operating expenses | 22500 | 27500 | 32500 | |
| Fixed operating expenses: | ||||
| Salary expense | 10000 | 10000 | 10000 | |
| Rent expense | 4000 | 4000 | 4000 | |
| Depreciation expense | 1400 | 1400 | 1400 | |
| Power cost (40% of sales) | 800 | 800 | 800 | |
| Misc. expense (fixed portion) | 1000 | 1000 | 1000 | |
| Total Fixed operating expenses | 17200 | 17200 | 17200 | |
| Total operating expenses | 39700 | 44700 | 49700 | |
