7) Jack of All Trades, Master of None Incorporated makes one product and has provided the following information:

Budgeted selling price per unit: $ 100 per unit sold

Budgeted unit sales, February: 10,000 units

Raw materials requirement per unit of output: 5 pounds

Raw materials cost: $ 3.00 per pound

Direct labor requirement per unit of output: 2.5 direct labor- hours

Direct labor wage rate: $ 18.00 per direct labor- hour

Predetermined overhead rate (all variable): $ 11.00 per direct labor-hour

Variable selling and administrative expense: $ 2.70 per unit sold

Fixed selling and administrative expense: $ 70,000 per month

The estimated net operating income (loss) for February is closest to:

A) $6,000

B) $28,000

C) $125,000

D) $56,000

8) Kid Rock LLC is working on its cash budget for July. The budgeted beginning cash balance is $50,000. Budgeted cash receipts total $178,000 and budgeted cash disbursements total $168,000. The desired ending cash balance is $30,000. The excess (deficiency) of cash available over disbursements for July will be:

A) $ 0

B) ($30,000)

C) $30,000

D) $60,000