7. Starr Company has a cash balance of $18,000 on April 1. The comcte to maintain a minimum cash balance of $24,000. During Apnunth receipts are $180,000. Expected cash disbursements during the is required April expected cash $208,000. During April the company will need to borrow: a. $8,000 b. $14,000 C. $34,000 $24,000 8. The direct materials budget shows: (Note: Think carefully!) Units to be produced Total pounds needed for production Total materials required 3,000 12,000 13,200 What are the direct materials per unit? a. 4.4 pounds 6. 4.0 pounds c. Cannot be determined from the data provided d. 0.44 pounds Poor quality materials COULD have an unfavorable effect on which of the following variances? 9. Material Quantity Variance Yes No Yes Labor Efficiency Variance Yes Yes No No a) C. No 10. An unfavorable materials quantity variance would occur if a. actual pounds of materials used were greater than the standard pounds b. more materials were purchased than were used. d. actual labor hours used were greater than the standard labor hours allowed. allowed actual pounds of materials used were less than the standard pounds allowed. Which of the following is incorrect about variance reports? a. They facilitate "management by exception. 11. (b They should only be sent to the top level of management. c. They should be prepared as soon as possible. d. They may vary in form, content, and frequency among companies