5. Truliant Co. sells a product called Alpha and has predicted the following sales for the first four months of the current year: January February March April Sales in units 1.700 1.900 2.100 1.600 Ending inventory for each month should be 20% of next month's sales How many units should be produced in February? a 1.940 b. 1.800 1.950 d. 1.850 6. When preparing the cash budget, all the following should be considered except a cash receipts from customers b.cash payments to suppliers c. cash payments for equipment d. depreciation expense 7. What is the primary difference between a static budget and a flexible budget? a. The static budget contains only fixed costs, while the fexble budget contains only b. The static budget is prepared for a single level of activity, while a fexible budget is adjusted for different activity levels c. The static budget is constructed using input from only upper level management, while a flexible budget obtains input from all levels of management d. The static budget is prepared only for units produced, while a flexible budget reflects the number of units sold 8. A company's planned activity level for next year is expected to be 100,000 machine hours. At this level of activity, the company budgeted the following factory overhead costs: Variable Fixed Indirect materials 550.000 Depreciation $37.500 Indirect labor 120.000 7.500 Factory supplies 15.000 Supervision 30.000 A flexible budget prepared at the 90,000 machine hours level of activity would show total factory overhead costs of: a 202.500 b. 270.000 c. 277.500 d. 225.000