"Three Problems Answers(Picture Pretty,Russell Company,Tylon's Hardware)"…Complete Answer! Thanks

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. (five points)

Question 2: Determine the total costs of direct materials for August purchases. (five points)

Problem 2 - Russell Company has the following projected account balances for June 30, 20X2:

Accounts payable$40,000 Sales$800,000

Accounts receivable100,000 Capital stock400,000

Depreciation, factory24,000 Retained earnings?

Inventories (5/31 & 6/30)180,000 Cash56,000

Direct materials used200,000 Equipment, net240,000

Office salaries80,000 Buildings, net400,000

Insurance, factory4,000 Utilities, factory16,000

Plant wages140,000 Selling expenses60,000

Bonds payable160,000 Maintenance, factory28,000

Question 1: Calculate the budgeted net income for June 20X2.(five points)

Question 2: Calculate the budgeted total assets as of June 30, 20X2. (five points)

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:

ItemFixedVariableCost driver

Product handling$10,000$1.25per 100 units

Storage-3.00per storage bin

Utilities1,0001.50per 100 units

Shipping clerks1,0001.00per shipment

Supplies-0.50per shipment

During 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:

ItemActual costs

Product handling$10,900

Storage465

Utilities2,020

Shipping clerks1,400

Supplies340

Question 1: Determine the 20X2 static budget variances. (five points)

Question 2: Determine the 20X2 flexible budget variances. (five points)