1) XYZ Inc. is working on its cash budget for March. The budgeted beginning cash balance is $39,000. Budgeted cash receipts total $106,000 and budgeted cash disbursements total $102,000. The desired ending cash balance is $55,000. To attain it's desired ending cash balance for March, the company needs to borrow:

Answer: $12,000

2) XYZ Company has the following sales budget for 2018:

May $164,000 June $145,000

July $206,000 August $181,000

September 168,000 October 203,000

November 209,000 December 185,000

Sales are immediately due, however the cash collection of sales, historically, has been as follows:

55% of sales collected in the month of sale,

35% of sales collected in the month following the sale,

7% of sales collected in the second month following the sale, and

3% of sales are uncollectible.

Cash collections for August are ________.

Answer: $181,800

3) XYZ Co. manufactured 105,000 chairs during May. The variable overhead cost-allocation base is $5.30 per machine hour. The data for May is as follows:

Actual Budgeted

Production 105,000 units 120,000 units

Machine-hours 6,500 hours 6,000 hours

Variable overhead cost per machine-hour $5.35 $5.30

What is the variable overhead efficiency variance?

Answers: $6,625 unfavorable