18) De-Mand Corp. expects to start April with $14,000 in cash, and has provided part of its budget for the second quarter: April May June Cash collections $40,000 $40,000 $52,000 Cash payments: Purchases of direct materials 4,500 5,000 7,000 Operating expenses 7,200 7,000 4,500 Capital expenditures 5,000 O 10,000 The firm's projected cash balance at the end of April = A) $95,800 B) $54,000 C) $37,300 D) $65,300 19) Which of these is an example of the benchmarking function of a budget? A) A budget needs integrated input from different business units. B) Budgeting requires close cooperation between accountants and workers. C) Budget figures are used as a standard to evaluate managers' performance. D) The budget outlines a specific course of action for the coming period. 20) Westem Outfitters projected sales of 79,000 units for the year at $12 per unit. Actual sales were 73,000 units at $14 per unit. Variable costs were budgeted at $4 per unit, and the actual variable cost was $5 per unit. Budgeted fixed costs totaled $375,000 but actual fixed costs amounted to $415,000. What is the flexible budget variance for operating income? A) $209,000 U B) $33,000 F C) $33,000 U D) $73,000 F Vog REVIEW View Help 1) Busy-B Inc. has forecast sales of $45,000 in January. Variable and fixed selling and administrative expenses are: Utilities Expenses: $600 + 20% of sales Commissions expenses: 10% of sales Salary expense: $6,000 per month Rent expense: $5,000 per month Depreciation expense: $1,400 per month Calculate total selling and administrative expenses for January. A) $26,500 B) $32,500 C) $13,500 D) $29,500 2) De-Lite, Inc. has prepared the following direct materials purchases budget: Month Budgeted DM Purchases April $76,300 May 78,000 June 70,200 Purchases are paid: 40% in the month of purchase, 50% in the following month, and 10% two months after purchase. Total payments in June for purchases = I A) $67,080 B) $46,630 C) $35,710 D) $74,710