a. A company is preparing its cash budget for the first quarter of the year. It has $1000 in cash at the beginning of the period. Cash sales for the quarter are budgeted at $30000. Selling and administrative expenses are budgeted at $8000, which includes $2000 depreciation. Cash expenses are paid in the month incurred. Cash payment for inventory purchases are budgeted at $25000. The desired cash balance on March 31 is $4500. How much financing will the company need during the quarter?

$6500

$2000

$4500

$0

b. The static budget sales revenue is $70000 and the flexible budget sales revenue is $71200. If the actual sales price is $7 and the budgeted sales price is $7.50, what is the sales volume variance?

$8400 favorable

$1200 unfavorable

$1200 favorable

$9000 unfavorable

c. In June, Pharoah Manufacturing purchased 7700 gallons of blue dye used to produce stone-washed denim clothing. The price per gallon was $1.27 and the company used 7100 gallons of the dye during the month. The standard price for the dye is $1.30. What is the materials price variance for Pharoah for June?

$231 favorable

$231 unfavorable

$213 unfavorable

$213 favorable