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Landers Company manufactures a number of products. The standards relating to one of these products are shown below: Inputs Standard Quantity Standard Price Direct materials 4.5 pounds $0.80 per pound Direct labor 1.50 hours $20.00 per hour Variable manufacturing overhead 1.50 hours $10.00 per hour To prepare the budgets of 2021, the following information is provided: Data 2021 Quarter 2022 Quarter 1 2 3 4 1 2 Budgeted unit sales 50,000 50,000 90,000 60,000 80,000 80,000 Selling price per unit $60 Desired ending finished goods inventory is 35% of the budgeted unit sales of the next quarter Finished goods inventory, 1 Jan 2021 13,000 units Desired ending inventory of raw materials 10% of the next quarter's production needs Raw materials inventory, beginning 23,000 pounds Raw materials purchases are paid 70% in the quarter the purchases and 30% in the quarter following purchase Accounts payable, 1 Jan 2021 $90,000 To evaluate the performance of the first quarter in 2021, the results follow: Actual output 55,000 units Actual variable manufacturing overhead cost $902,000 Actual Quantity Actual price Actual direct materials cost (used) 249,000 pounds $0.75 per pound Actual direct materials cost (purchased) 251,050 pounds $0.75 per pound Actual direct labor cost 82,000 hours $22.00 per hour 3 Required: 1. Prepare the sales budget, production budget, raw materials purchase budget and the schedule of expected cash payments for each quarter and the total for the year 2021. (Budgets are prepared according to the standard quantity and price of raw materials.) 2. Compute the total standard cost per unit and total actual cost per unit for the first quarter in 2021. How much is the difference between the actual unit costs and standard cost? 3. Compute the following variances for the first quarter of 2021: a. Materials quantity and price variances. b. Labor efficiency and rate variances. c. Variable overhead efficiency and rate variances.

(No need to answer requirement no.1)

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