13) Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Beginning Inventory 21,000 Ending Inventory 71,000 Finished goods (units) Raw material (grams) 51,000 41,000 Each unit of finished goods requires 3 grams of raw material. The company plans to sell 680,000 units during the year. How much of the raw material should the company purchase during the year? A) 2,190,000 grams C) 2,231,000 grams B) 2,180,000 grams D) 2,201,000 grams 14) Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $750 per month plus $81 per job plus $13 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in September to be 22 jobs and 141 meals, but the actual activity was 18 jobs and 138 meals. The actual cost for catering supplies in September was $3805. The catering supplies in the planning budget for September would be closest to: A) $4365 D) $3805 C) $4555 B) $4002 15) Which of the following may appear on a flexible budget performance report? A) An unfavorable spending variance. B) An unfavorable activity variance. C) A favorable revenue variance. D) All of the above may appear on a flexible budget performance report. 16) Which of the following statements is NOT correct concerning the Cash Budget? A) The Cash Budget should be prepared before the Budgeted Income Statement. B) The Cash Budget builds on earlier budgets and schedules as well as additional data. C) It is not necessary to prepare any other budgets before preparing the Cash Budge D) The Cash Budget should be prepared before the Budgeted Balance Sheet