QUESTION 1

Pace Company has the following plan information available for 2019:

Month Total Sales

January $166,000

February $150,000

March $136,000

April $182,000

May $152,000

June $135,000

July $110,000

The normal pattern of cash collections on sales is 10% in the month of the sale, 50% in the month following the sale and 40% in the second month following the sale. The expected total cash collections for May should be?

Select one:

a. $160,600

b. $126,700

c. $165,400

d. $152,000

e. $ 15,200

QUESTION 2:

The static budget for the production of 100,000 units for Jupiter Enterprises Inc. is as follows:

at 100,000 units

Direct labor $150,000

Direct materials $400,000

Variable manufacturing overhead $200,000

Fixed manufacturing overhead $450,000

In a period when 90,000 units were produced, the total costs in the flexible budget would be?

Select one:

a. $1,200,000

b. $1,080,000

c. $ 675,000

d. $1,125,000

e. $ 750,000