96. Cahuilla Corporation predicts the following sales in units for the coming four months:

		April		May		June		July
Sales in Units		430		470		490		430

Each month's ending Finished Goods Inventory should be 40% of the next month's sales. March 31 Finished Goods inventory is 172 units. A finished unit requires 5 pounds of direct material B at a cost of $3.00 per pound. The March 31 Raw Materials Inventory has 280 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted cost of direct material B during May should be:

• $9,267.

• $5,019.

• $7,116.

• $478.

• $466.

110. Flagstaff Company has budgeted production units of 9,600 for July and 9,800 for August. The direct materials requirement per unit is 3 ounces (oz.). The company has determined that it wants to have safety stock of direct materials on hand at the end of each month to complete 30% of the units budgeted in the following month. There was 8,640 ounces of direct material in inventory at the start of July. The total cost of direct materials purchases for the July direct materials budget, assuming the materials cost $1.10 per ounce, is:

• $31,878.

• $22,176.

• $31,680.

• $41,382.

• $31,482.

113. In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available:

Net income for the year was	$	66,000
Accounts payable increased by		32,000
Accounts receivable decreased by		53,000
Inventories decreased by		19,000
Cash dividends paid were		28,000
Depreciation expense was		48,000

Net cash provided by operating activities was:

• $99,000.

• $98,000.

• $52,000.

• $218,000.

• $180,000.

118. Fletcher Company collected the following data regarding production of one of its products. Compute the total direct labor cost variance.

Direct labor standard (2 hrs. @ $12.75/hr.)	$	25.50		per finished unit
Actual direct labor hours		68,800		hrs.
Actual finished units produced		34,000		units
Actual cost of direct labor	$	946,950

• $10,200 favorable.

• $69,750 favorable.

• $79,950 favorable.

• $79,950 unfavorable.

• $69,750 unfavorable.