1. NICE Company has a policy of maintaining inventory of finished goods equal to 30% of the following month's sales. For the forthcoming month of March, the budgeted beginning inventory at 30, 000 units and the ending inventory at 33, 000 units. This suggests that

a. February sales are budgeted at 10, 000 units less than March sales.

b. March sales are budgeted at 10, 000 units less than April sales

c. February sales are budgeted at 3, 000 units less than March sales.

d. March sales are budgeted at 3, 000 units less than April sales.

2. NICE Manufacturing Corporation is using the following flexible-budget formula for annual indirect labor cost:

Total Cost = P12, 000 + P0.75 per machine hour.

For the month of April, the operating budgets are based upon 10, 000 hours of planned machine time. Indirect labor costs included in this planning budget are

a. P7, 500 b. P8, 500 c. P17, 500 d. P19, 500

3. During the 1st quarter of its operations, NICE Company expects to sell 50, 000 units and create an ending inventory pf 20, 000 units. Variable manufacturing costs are budgeted at P 10 per unit and fixed manufacturing costs at P 100, 000 per quarter. The company's treasurer expects that 80% of variable manufacturing costs will require cash payment during the quarter and that 20% will be financed through accounts payable. Only 70% of fixed costs are expected to require cash payments during the quarter. In the cash budget, payments of manufacturing costs during the quarter will total:

a. P450, 000b. P 610, 000 c. P630, 000 d. P800, 000