14. Paradise Corp. budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels are planned for next year. Beginning Ending Inventory Inventory Raw materials (pounds) 30,000 40,000 Finished goods (units) 105,000 90,000 Four pounds of raw material are needed to produce each unit of finished product. Suppliers charge $2.50 per Materials pound and require cash payments (no sales on account). If Paradise plans to sell 210,000 units next year, how much should they budget for cash payments for Materials? 15. Bobe Air uses two measures of activity, flights and passengers, in its cost estimates. The cost formula for plane operating costs is $60,000 fixed costs per month plus $2,000 per flight plus $15 per passenger. The company expected its activity in May to be 100 flights and 300 passengers, but the actual activity was 104 flights and 297 passengers. The actual cost for plane operating costs in May was $423,600. What percentage of the variance between the static budget and actual results was due to spending efficiencies/inefficiencies (i.e. not due to activity)