1. Rierson Inc. produces and sells two products. Data concerning those products for the most recent month appear below. The fixed expenses of the entire company were $17,730. The break-even point for the entire company is closest to: Sales Variable expenses............. a. $15,270 Product T77G Product 129C $14,000 $5.180 $19,000 $9.340 b. $31,661 c. $17,730 d. $32,250 2. The excess or deficiency of cash available over disbursements on the cash budget is calculated as follows: a. The beginning balance less the expected cash receipts less the expected cash disbursements. b. None of these. c. The cash available less the expected cash receipts plus the expected cash disbursements. d. The beginning balance plus the expected cash receipts less the expected cash disbursements. 3. Below are the importance of a budget, except: a. basis for performance evaluation. b. resource allocation. c. manipulation of financial results. d. motivation for employees to achieve more than the budgeted target. 4. What are the two different components of raw material variances? a. Material quantity variance and material usage variance b. Material price variance and material spending variance c. Material price variance and material quality variance d. Material price variance and material quantity variance 5. Each of the following formulas is correct except: a. variable overhead spending variance = standard rate (actual hours - standard hours) b. direct labour efficiency variance = actual rate (actual hour - standard hour) c. applied fixed overhead = standard fixed overhead rate x standard hours d. material quantity variance = standard price (actual quantity - standard quantity)