2a)

Webster Corporation is preparing its cash budget for April. The March 31 cash balance is $35,900. Cash receipts are expected to be $636,000 and cash payments for purchases are expected to be $603,500. Other cash expenses expected are $26,500 selling and $33,000 general and administrative. The company desires a minimum cash balance at the end of each month of $25,000. If necessary, the company borrows enough cash to meet the minimum cash balance using a short-term note. Webster's preliminary cash balance before loan activity for April is expected to be:

$8,900.

$16,100.

$25,000.

($27,000).

$68,400.

2b)

Western Company is preparing a cash budget for June. The company has $11,200 cash at the beginning of June and anticipates $30,800 in cash receipts and $36,100 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must:

Borrow $4,100.

Borrow $10,000.

Repay $4,100.

Repay $5,900.

Borrow $5,300.

2c)

Use the following data to find the total direct labor cost variance if the company produced 3,200 units during the period.

Direct labor standard (3 hrs. @ $4/hr.)	$12
Actual hours worked	3,200
Actual rate per hour	$4.50

$24,000 favorable.

$2,400 unfavorable.

$4,800 favorable.

$4,800 unfavorable.

$8,000 favorable.

2d)

The standard materials cost to produce 1 unit of Product R is 4 pounds of material at a standard price of $40 per pound. In manufacturing 8,000 units, 31,000 pounds of material were used at a cost of $41 per pound. What is the total direct materials cost variance?

$9,000 favorable.

$41,000 favorable.

$32,000 unfavorable.

$9,000 unfavorable.

$41,000 unfavorable.