1.) A furniture manufacturer uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:

Denominator level of activity		2,900	MHs
Overhead costs at the denominator activity level:
Variable overhead cost	$	30,880
Fixed overhead cost	$	34,370

The following data pertain to operations for the most recent period:

Actual hours		2,800	MHs
Standard hours allowed for the actual output		2,940	MHs
Actual total variable manufacturing overhead cost	$	26,440
Actual total fixed manufacturing overhead cost	$	35,560

The predetermined overhead rate is closest to:

2.)

Tracie Corporation manufactures and sells women's skirts. Each skirt (unit) requires 2.2 yards of cloth. Selected data from Tracie's master budget for next quarter are shown below:

	July			August		September
Budgeted sales (in units)	8,300			10,300		12,300
Budgeted production (in units)	9,300			11,800		14,300

Each unit requires 0.9 hours of direct labor, and the average hourly cost of Tracie's direct labor is $19. What is the cost of Tracie Corporation's direct labor in September?

3.)

Roberts Enterprises has budgeted sales in units for the next five months as follows:

June	4,550	units
July	7,350	units
August	5,350	units
September	6,800	units
October	3,750	units

Past experience has shown that the ending inventory for each month must be equal to 30% of the next month's sales in units. The inventory on May 31 contained 1,365 units. The company needs to prepare a production budget for the second quarter of the year.

The total number of units to be produced in July is:

4.) Sparks Corporation has a cash balance of $8,100 on April 1. The company must maintain a minimum cash balance of $6,500. During April, expected cash receipts are $49,000. Cash disbursements during the month are expected to total $53,500. Ignoring interest payments, during April the company will need to borrow:

5.) Gipple Corporation makes a product that uses a material with the quantity standard of 7.4 grams per unit of output and the price standard of $6.10 per gram. In January the company produced 3,500 units using 24,970 grams of the direct material. During the month the company purchased 27,500 grams of the direct material at $6.30 per gram. The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for January is: