1. Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:

	April	May	June
Manufacturing costs (1)	$155,000	$196,000	$212,000
Insurance expense (2)	1,010	1,010	1,010
Depreciation expense	2,160	2,160	2,160
Property tax expense (3)	570	570	570

(1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred and one-fourth is paid for in the following month. (2) Insurance expense is $1,010 a month; however, the insurance is paid four times yearly, in the first month of the quarter (i.e., January, April, July, and October). (3) Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of June are

a.$159,000

b.$49,000

c.$208,000

d.$257,00

2.

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:

	April	May	June
Manufacturing costs (1)	$157,400	$192,200	$218,800
Insurance expense (2)	810	810	810
Depreciation expense	1,810	1,810	1,810
Property tax expense (3)	420	420	420

(1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred and one-fourth is paid for in the following month. (2) Insurance expense is $810 a month; however, the insurance is paid four times yearly, in the first month of the quarter (i.e., January, April, July, and October). (3) Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of May are

a.$222,850

b.$144,150

c.$183,500

d.$39,350

3. Jase Manufacturing Co.'s static budget for 7,700 units of production includes $38,500 for direct labor and $2,310 for variable electric power. Total fixed costs are $37,600. At 10,700 units of production, a flexible budget would show

a.variable costs of $40,810 and $37,600 of fixed costs

b.variable costs of $56,710 and $52,249 of fixed costs

c.variable and fixed costs totaling $78,410

d.variable costs of $56,710 and $37,600 of fixed costs

4.

Use the information below for Nuthatch Corporation to answer the question that follows.

Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first 3 months of business-September, October, and November-are $243,000, $307,000, and $428,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale.

The cash collections expected in November from accounts receivable are projected to be

a.$339,192

b.$239,680

c.$196,700

d.$282,660

4.

Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first 3 months of business-September, October, and November-are $239,000, $318,000, and $424,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale.

The cash collections expected in September from accounts receivable are estimated to be

a.$286,800

b.$239,000

c.$167,300

d.$133,840