Question 1:

Question 2:

Lovely Flowers Limited bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 5,000 units are planned to be sold in October. The variable selling and administrative expense is $19.40 per unit. The budgeted fixed selling and administrative expense is $137,380 per month, which includes depreciation of $8,580 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the October selling and administrative expense budget should be 1) $185,880 2) $234,380 3) $225,800 4) $242,980 Firecracker Company has developed the following direct materials standards for one of its products. Direct materials: 15 pounds * $16 per pound The following activity occurred during the month of October: Materials purchased: 10,000 pounds costing $170,000 7,200 pounds 500 units Materials used: Units produced: The direct materials usage variance is 1) $4,800 F 2) $4,800 U 3) $40,000 F