Discovery Company sell backyard swing sets. Discovery’s budg…

Discovery Company sell backyard swing sets. Discovery’s budgeted sales for the current year were 3,600 units at a selling price of $225 per unit. Actual sales for the current year were 3,300 units at a selling price of $215 per unit. Budgeted variable costs were $166 per unit, and budgeted total fixed costs were $122,000. Actual total variable costs were $518,100 and actual total fixed costs were $126,000. What is Discovery’s flexible budget spending variance for total costs?

Beluga Corporation is considering a capital investment with…

Beluga Corporation is considering a capital investment with a 3-year time horizon. In addition to the upfront cost and salvage value of the new equipment, the project has additional working capital needs. Beluga uses a hurdle rate of 20% to make capital budgeting decisions and performed the following net present value analysis of the project: What is the profitability index of this project? (Round to two decimal points.)

Gecko Company’s budgeted monthly sales are as follows: April…

Gecko Company’s budgeted monthly sales are as follows: April $220,000, May $260,000, June $190,000, and July $300,000. Sales are 70% cash and 30% on account. Gecko collects 40% of its accounts receivable in the month of the sale and 60% in the month following the sale. Cost of goods sold is budgeted at 75% of sales and ending inventory is budgeted at 20% of the next month’s cost of goods sold. All inventory purchases are paid 10% in the month of purchase and 90% in the following month. What are Gecko’s budgeted cash collections for the month of June?