1)

Cahuilla Corporation predicts the following sales in units for the coming four months:

	April		May		June		July
Sales in Units	260		300		320		260

Each month's ending Finished Goods Inventory should be 40% of the next month's sales. March 31 Finished Goods inventory is 104 units. A finished unit requires 5 pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 220 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted purchases of pounds of direct material B during May should be:

Multiple Choice

1,522 lbs.

1,078 lbs.

308 lbs.

1,984 lbs.

296 lbs.

2)

Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Hassocks standard labor cost is $18 per hour. During August, Hassock produced 11,000 units and used 22,140 hours of direct labor at a total cost of $395,720. What is Hassocks labor rate variance for August?

Multiple Choice

$2,782 unfavorable.

$5,582 favorable.

$2,782 favorable.

$2,800 unfavorable.

$2,800 favorable.

3)

The accountant for Crusoe Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

Retained earnings balance at the beginning of the year	$	133,000
Cash dividends declared for the year		53,000
Proceeds from the sale of equipment		88,000
Gain on the sale of equipment		8,400
Cash dividends payable at the beginning of the year		25,000
Cash dividends payable at the end of the year		28,400
Net income for the year		99,000

The amount of cash dividends paid during the year would be:

Multiple Choice

$49,600.

$290,000.

$262,000.

$188,000.

$266,600.

4)

Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months:

		January		February		March
Material purchases		$ 12,580		14,690		11,510

Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $6,900. The expected January 31 Accounts Payable balance is:

Multiple Choice

$7,345.

$9,740.

$6,290.

$6,900.

$12,580.

5)

Cavern Company's output for the current period results in a $5,900 unfavorable direct material price variance. The actual price per pound is $60.00 and the standard price per pound is $58.00. How many pounds of material are used in the current period?

Multiple Choice

8,850.

5,900.

8,752.

2,950.

2,852.