May Corporation, a merchandising firm, has budgeted sales as follows for the third quarter of the year:

July$99,000

August$72,000

September$86,400

Cost of goods sold is equal to 65% of sales. The company wants to maintain a monthly ending inventory equal to 110% of the Cost of Goods Sold for the following month. The inventory on June 30 is less than this ideal since it is only $68,185. The company is now preparing a Merchandise Purchases Budget. The budgeted purchases for July are:

$64,350

$47,645

$32,045

$75,645

Papenfuss Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below:

Activity level		84	guests
Variable overhead costs:
Supplies	$	159.60
Laundry		646.80
Fixed overhead costs:
Utilities		405.00
Salaries and wages		5,750.00
Depreciation		2,790.00
Total overhead cost	$	9,751.40

The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 74guests?

$54,229.40

$9,751.40

$9,655.40

$8,754.24

Gandrud Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During June, the kennel budgeted for 2,880 tenant-days, but its actual level of activity was 2,860 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

	Fixed element per month			Variable element per tenant-day
Revenue				$	42.70
Wages and salaries	$	3,390		$	8.70
Food and supplies		1,455			16.80
Facility expenses		12,000			4.00
Administrative expenses		7,860			1.70
Total expenses	$	24,705		$	31.20

The food and supplies in the flexible budget for June would be closest to:

$49,176

$49,752

$49,839

$49,503