1. Franklin, Inc. has two divisions, Seward and Charles. Following is the income statement for the previous year:

	Seward		Charles
Sales	$	603,200		$	403,000
Variable Costs		198,100			253,200
Contribution Margin	$	405,100		$	149,800
Fixed Costs		177,700			172,800
Profit Margin	$	227,400		$	(23,000	)

Of the total fixed costs, $302,700 are common fixed costs that are allocated equally between the divisions. How much did the Charles division incur in direct fixed costs?

A $172,800

B $302,700

C $149,800

D $21,450

2. Boxwood Inc has forecast purchases on account to be $313,000 in March, $371,000 in April, $424,000 in May, and $492,000 in June. Sixty percent of purchases are paid for in the month of purchase, the remaining 40% are paid in the following month. What is the budgeted Accounts Payable balance for June 30?

A $254,400

B $295,200

C $169,600

D $196,800

3. Delaware Corp. prepared a master budget that included $24,360 for direct materials, $44,660 for direct labor, $15,200 for variable overhead, and $38,900 for fixed overhead. Delaware Corp. planned to sell 4,060 units during the period, but actually sold 4,310 units. What would Delawares direct labor cost be if it used a flexible budget for the period based on actual sales?

A $44,660

B $42,707

C $29,350

D $47,410