# Week 5 Wiley Plus Problems

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,...

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