1. The selling and administrative expense budget of Spurlock Corporation is based on budgeted unit sales, which are 6,300 units for February. The variable selling and administrative expense is $9.30 per unit. The budgeted fixed selling and administrative expense is $118,440 per month, which includes depreciation of $19,530 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the February selling and administrative expense budget should be: A) $98,910 B) $157,500 C) $58,590 D) $177,030 2. Guthridge Inc. is working on its cash budget for February. The budgeted beginning cash balance is $26,000. Budgeted cash receipts total $104,000 and budgeted cash disbursements total $100,000. The desired ending cash balance is $40,000. To attain its desired ending cash balance for February, the company needs to borrow: A) $0 B) $10,000 C) $40,000 D) $70,000 3. A flexible budget: A) classifies budget requests by activity and estimates the benefits arising from each activity. B) presents a statement of expectations for a period of time but does not present a firm commitment. C) presents the plan for only one level of activity and does not adjust to changes in the level of activity. D) presents the plan for a range of activity so that the plan can be adjusted for changes in activity levels. 4. Johnson's Snow Removal's cost formula for its vehicle operating cost is $1,240 per month plus $348 per snow-day. For the month of December, the company planned for activity of 12 snow-days, but the actual level of activity was 14 snow-days. The actual vehicle operating cost for the month was $6,330. The vehicle operating cost in the planning budget for December would be closest to: A) $5,426 B) $6,112 C) $5,416 D) $6,330 5. Corporation uses activity based costing and has three activity pools: Batch Setup, Order Processing, and Product Assembly. The company uses the following activity rates from its activity-based costing to assign overhead costs to products: Batch Setup - $93.62 per batchOrder Processing - $19.25 per orderProduct Assembly - $2.15 per assembly hourData concerning two products appear below:Product X60R - number of batches - 59, number of orders - 11, number of assembly hours - 687Product G96Y - number of batches - 15, number of orders - 7, number of assembly hours - 716How much overhead cost would be assigned to Product X60R using the activity-based costing system? A) $5,523.58 B) $87,070.14 C) $115.02 D) $7,212.38 6.Corporation uses an activity-based costing system with three activity cost pools (Assembly, Setting Up and Other). The company has provided the following data concerning its costs: Wages - $240,000, Depreciation - $200,000, Utilities - $100,000. Distribution of these costs across the activity pools is as follows: Wages (Assembly - 40%, Setting Up - 40%, Other - 20%), Depreciation (Assembly - 20%, Setting Up - 45%, Other - 35%), Utilities (Assembly - 35%, Setting Up - 40%, Other - 25%).How much cost, in total, would be allocated in the first-stage allocation to the Other activity cost pool? A) $143,000 B) $144,000 C) $108,000 D) $135,000 7. Which of the following statements is true for a company that uses variable costing? A) The unit product cost changes because of changes in the number of units manufactured. B) Profit fluctuates with sales. C) Any underapplied overhead is included in the product cost. D) Product costs include variable administration costs