1) Assume that a company expects to produce 10,900, 11,900, and 13,900 units of finished goods in January, February, and March, respectively. Each unit of finished goods requires 3 pounds of raw material and each pound of raw material costs $3.25. The company always maintains an ending raw materials inventory equal to 20% of next months production needs. What is the amount of expected raw materials purchases for February?

Multiple Choice

• $119,925

• $83,025

• $116,325

• $71,745

2) Assume that Junes production budget showed required production of 431,000 units, desired ending finished goods inventory of 22,000 units, and beginning finished goods inventory 9,000 units. What were Junes budgeted unit sales?

Multiple Choice

• 444,000 units

• 418,000 units

• 412,500 units

• 456,500 units

3)Assume that the amount of one of a companys variable expenses in its flexible budget is $40,000. The actual amount of the expense is $42,000 and the amount in the companys planning budget is $43,000. The activity variance for this expense is:

Multiple Choice

• $1,500 U.

• $1,500 F.

• $3,000 F.

• $3,000 U.

4)Assume that the cost formula for one of a companys variable expenses is $5.00 per unit. The companys planned level of activity was 2,000 units and its actual level of activity was 2,200 units. The actual amount of this expense was $10,160. The spending variance for this expense is:

Multiple Choice

• $2,280 F.

• $1,440 F.

• $840 F.

• $2,280 U.

5)Assume that the cost formula for one of a companys variable expenses is $5.00 per unit. The companys planned level of activity was 2,000 units and its actual level of activity was 2,200 units. The spending variance was $950 unfavorable. What is the actual amount of this expense?

Multiple Choice

• $8,950

• $9,950

• $11,000

• $11,950

6)Assume that a companys planned level of activity was 2,000 units and its actual level of activity was 2,200 units. The spending variance for one of its fixed expenses was $200 favorable. The actual amount of the fixed expense was $10,600. What amount of this expense would be included in the companys planning budget?

Multiple Choice

• $8,800

• $11,800

• $9,800

• $10,800