1. At the beginning of the period, the Cutting Department budgeted direct labor of $129,000, direct materials of $156,000 and fixed factory overhead of $13,400 for 7,400 hours of production. The department actually completed 11,200 hours of production. The appropriate total budget for the department, assuming it uses flexible budgeting, is

Round your final answer to the nearest dollar. Do not round interim calculations.

a.$305,281

b.$298,400

c.$451,632

d.$444,751

2.Starling Co. is considering disposing of a machine with a book value of $20,400 and estimated remaining life of five years. The old machine can be sold for $5,700. A new high-speed machine can be purchased at a cost of 74,000. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $23,500 to $20,900 if the new machine is purchased. The five-year differential effect on profit from replacing the machine is a(n)

a.increase of $55,300

b.decrease of $55,300

c.decrease of $71,890

d.increase of $71,890'

3 Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20.20 per pound and costs $16.85 per pound to produce. Product D would sell for $42.80 per pound and would require an additional cost of $11.55 per pound to produce.

The differential cost of producing Product D is

a.$9.24 per pound

b.$11.55 per pound

c.$6.93 per pound

d.$13.86 per pound