HomeFront Inc., manufactures and distributes home maintenance products to retailers. Among its product offerings is EZ-Melt,...

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HomeFront Inc., manufactures and distributes home maintenance products to retailers. Among its product offerings is EZ-Melt, icc-melting pellets used to clear icc from sidewalks and driveways. The product has a selling price of $2 per bag. When planning for the upcoming winter season, Home Front used the following estimates: September October November December Unit Sales: Cash Sales & Collections: % of Sales paid for in Cash % of Sales paid for in Credit Credit collected in month of sale Credit collected in month after sale Uncollectible credit 60,000 80,000 95,000 75,000 10% 90% HomeFront holds an inventory policy where ending inventory at the end of each month should be equal to 40% of the next month's unit sales. 30% 65% 5% 14. Compute the amount of expected cash collections from sales that will appear on the December cash budget. 5 15. Compute the number of bags of EZ-Melt that should be produced in October. 16. Compute HomeFront's budgeted revenue from EZ-Meit in November. Use the following information to answer Questions 17-19. Mrs. Smith, manager of the Green City free lunch program, is quite upset after seeing the November performance report. As part of the city's cost control initiative, the free lunch program had streamlined its practices, using primarily volunteers to serve the food and buying in bulk to save money. The November report suggests that the streamlining initiative was a failure. The cost report follows. Planning Budget Actual Results Variances Variance % Clients Groceries Utilities (all variable) Supervisor Salary Total cost 4.000 $24,000 200 4,000 $28,200 4.420 $26,078 221 4,200 $30,499 $2,078 U 21 U 200 LJ 2,299 U 8.7% U 10.5% U 5.0% U 8.2% U 17. Compute the change in total cost that was caused by a change in the number of clients. 19. Compute the grocery cost spending variance. 18. Compute the amount of grocery cost that should appear on the flexible budget. HomeFront Inc., manufactures and distributes home maintenance products to retailers. Among its product offerings is EZ-Melt, icc-melting pellets used to clear icc from sidewalks and driveways. The product has a selling price of $2 per bag. When planning for the upcoming winter season, Home Front used the following estimates: September October November December Unit Sales: Cash Sales & Collections: % of Sales paid for in Cash % of Sales paid for in Credit Credit collected in month of sale Credit collected in month after sale Uncollectible credit 60,000 80,000 95,000 75,000 10% 90% HomeFront holds an inventory policy where ending inventory at the end of each month should be equal to 40% of the next month's unit sales. 30% 65% 5% 14. Compute the amount of expected cash collections from sales that will appear on the December cash budget. 5 15. Compute the number of bags of EZ-Melt that should be produced in October. 16. Compute HomeFront's budgeted revenue from EZ-Meit in November. Use the following information to answer Questions 17-19. Mrs. Smith, manager of the Green City free lunch program, is quite upset after seeing the November performance report. As part of the city's cost control initiative, the free lunch program had streamlined its practices, using primarily volunteers to serve the food and buying in bulk to save money. The November report suggests that the streamlining initiative was a failure. The cost report follows. Planning Budget Actual Results Variances Variance % Clients Groceries Utilities (all variable) Supervisor Salary Total cost 4.000 $24,000 200 4,000 $28,200 4.420 $26,078 221 4,200 $30,499 $2,078 U 21 U 200 LJ 2,299 U 8.7% U 10.5% U 5.0% U 8.2% U 17. Compute the change in total cost that was caused by a change in the number of clients. 19. Compute the grocery cost spending variance. 18. Compute the amount of grocery cost that should appear on the flexible budget.

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14 Amount of expected cash collections from sales that will appear on the December cash budget December sales are estimated to be 75000 units 10 of sa... View the full answer