3. Which of the following statements is NOT Correct concerning a) It is not necessary to prepare any other budgets before prepare Budget b) The Cash Budget should be prepared before the d e e) The Cash Budget should be prepared before the Budete Balance Sheet d) The Cash Budget builds on earlier budgets and schedules mal e 6. GECO Inc. is working on its cash budget for January. The budete beginning th $41,000. Budgeted cash receipts total 5114,000 and budgeted cash disbursements $113,000. The desired ending cash balance is $60,000. The excess deficiency of cash available over disbursements for January will be: a) $42,000 b) $155.000 c) $40,000 d) $1,000 Answer: Beginning cash balance Add cash receipts (all sales are for cash).............. Total cash available... Less cash disbursements Excess (deficiency) of cash available over disbursements $41.000 114.000 156.000 113.000 $42.000 7. African Company manufactures and sells women's skirts. Each skirt (unit) requires 2.5 yards of cloth. Selected data from African's master budget for next quarter are shown below: July August September 6,000 8,000 9.000 Budgeted sales (in units) 8,000 10,500 12,000 Budgeted production (in units) Each unit requires 1.5 hours of direct labor, and the average hourly cost of African's direct is $10. Required: Calculate the direct labor cost in September? a) $135,000 b) $120,000 c) $157,500 d) $180,000 8. Which of the following statement is related to the Regression Method? a. It uses to analyze fixed cost. b. It uses to analyze profit c. It is a very simple method to apply like the High-Low Method. d. It uses all the points to estimate the fixed and variable of mixed costs