ACCT 346 WEEK 6 1. Cave Hardwares forecasted sales for April May June and July are 200000 230000 190000 and 240000 respectively. Sales are
65% cash and 35% credit, with all accounts receivable 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 total cash collections budgeted for June?
2. Madden Corporation manufactures T-shirts (its only product). The company- standards for manufacturing T-shirts are as follows:
Standard direct labor cost per hour $ 17 per hour
Standard direct labor hours per T-shirt 0.6 hours
During the month of January, the company produced 1,250 T-shirts. Related production data for the month follows:
Actual direct labor hours 770 hours
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?
USA 
India