On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy's sales are made on account. The following information was used in preparing estimated cash collections:

August sales (actual)	$	36,000
September sales (actual)	$	46,000
October sales (estimated)	$	23,000
November sales (estimated)	$	66,000
December sales (estimated)	$	56,000

Approximately 70% of all sales are collected in the month of the sale, 25% is collected in the following month, and 5% is collected in the month thereafter.

Budgeted collections from customers in October total:

Multiple Choice

• $105,000.

• $36,300.

• $29,400.

• $27,600.

If the standard quantity of materials is 84,500 units at $0.15 per unit and the actual quantity is 95,000 units at $0.12 per unit, then the materials quantity variance is:

Multiple Choice

• $1,575 Unfavorable.

• $2,850 Favorable.

• $2,850 Unfavorable.

• $1,275 Favorable.

If the standard quantity of materials is 84,700 units at $0.14 per unit and the actual quantity is 95,200 units at $0.11 per unit, then the materials price variance is:

Multiple Choice

• $1,386 Favorable.

• $2,856 Unfavorable.

• $1,470 Unfavorable.

• $2,856 Favorable.

Sterling Corporation has borrowed $114,000 that must be repaid in four years. This $114,000 is to be invested in an seven-year project with an estimated annual net cash flow of $19,000. The payback period for this investment is:

Multiple Choice

• Four years.

• Seven years.

• Six years.

• Indeterminable with the given information.