QUESTION 7 Southland Company is preparing a cash budget for August. The company has $17,000 cash at the beginning of August and anticipates $120,000 in cash receipts and $130,000 in cash disbursements during August. Southland Company wants to maintain a minimum cash balance of $10,000. To maintain the required balance, during August the company must: A. Repay $7,000. B. Borrow $3,000. C. Repay $3,000. D. Borrow $7,000. QUESTION 8 A company's flexible budget for 10,000 units of production reflects sales of $200,000; variable costs of $40,000; and fixed costs of $75,000. Calculate the expected level of operating income if the company produces and sells 13,000 units. A. $110,500 B. $85,000 C. $133,000. D. $100,000 QUESTION 9 Standard costs are: A. Actual costs incurred to produce a specific product or perform a service. B. Preset costs for delivering a product or service under normal conditions C. Established by the IMA. D. Rarely achieved. QUESTION 10 A company has established 5 pounds of Material J at S2 per pound as the standard for the material in its Product Z. The company has just produced 1,000 units of this product, using 5,200 pounds of Material that cost $9,880. The direct materials quantity variance is: A. $400 unfavorable. B. $120 favorable. C. $400 favorable. D. $520 favorable