27. The Express Company is preparing its cash budget for the month of June. The following information is available concerning its inventories:

Inventories at beginning of June	$	67,500
Estimated purchases of June		330,000
Estimated cost of goods sold for June		337,500
Estimated payments in June for purchases in May		56,250
Estimated payments in June for purchases prior to May		15,000
Estimated payments in June for purchases in June		80	%

What are the estimated cash disbursements for inventories in June?

a.) $264,000.

b.) $320,250.

c.) $335,250.

d.) $341,250.

28. TaskMaster Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. TaskMaster has established the following standards for the prime costs of one unit of product.

	Standard					Standard			Standard
	Quantity					Price			Cost
Direct Materials		8	pounds			$	1.80	per pound		$	14.40
Direct Labor		.25	hour			$	8.00	per hour			2.00
										$	16.40

During November, TaskMaster purchased 160,000 pounds of direct materials at a total cost of $304,000. The total factory wages for November were $42,000, 90% of which were for direct labor. TaskMaster manufactured 19,000 units of product during November using 142,500 pounds of direct materials and 5,000 direct labor hours.

Is the direct labor price (rate) variance favorable or unfavorable?

a.) Favorable.

b.) Unfavorable.

29.

Actual machine hours		840
Standard machine hours allowed		900
Denominator activity (machine hours)		1,000
Actual fixed overhead costs	$	3,800
Budgeted fixed overhead costs	$	4,000
Predetermined overhead rate ($1 variable + $4 fixed)	$	5

Is the fixed overhead spending (budget) variance favorable or unfavorable?

a.) Favorable.

b.) Unfavorable.