1- Webster Corporation's budgeted sales for February are $325,000. Webster pays sales representatives a commission of 6% of sales dollars. The company pays a sales manager a monthly salary of $4,400 and expects advertising expense of $2,000 per month. Compute the total budgeted selling expenses for February.

Multiple Choice

• $19,500.

• $6,400.

• $23,900.

• $25,900.

• $21,500.

  2- Grason Corporation is preparing a budgeted balance sheet for 2018. The retained earnings balance at December 31, 2017 was $533,500. The 2018 budgeted income statement shows expected net income of $112,000. The company expects to declare dividends during 2018 amounting to $40,000. The expected balance in retained earnings on the 2018 budgeted balance sheet is:

  Multiple Choice

• $533,500.

• $605,500.

• $645,500.

• $493,500.

• $685,500

  5- Which of the following factors is least likely to be considered in preparing a sales budget?

  Multiple Choice

• Business capacity.

• Forecasted economic and market conditions.

• Prediction of unit sales.

• The capital expenditures budget.

• Proposed selling expenses, such as advertising.

  7- Alliance Company budgets production of 24,000 units in January and 28,000 units in the February. Each finished unit requires 4 pounds of raw material K that costs $2.50 per pound. Each month's ending raw materials inventory should equal 40% of the following month's budgeted materials. The January 1 inventory for this material is 38,400 pounds. What is the budgeted materials needed in pounds for January?

  Multiple Choice

• 102,400 pounds.

• 96,000 pounds.

• 57,600 pounds.

• 140,800 pounds.

• 83,200 pounds.