Ripley Ltd's budgeted cash receipts and cash disbursements for the first two quarters are as follows: Ripley Ltd. has a line of credit agreement with its bank, which allows it to access short-term loan with an annual interest rate of 8%. (Assume that all borrowings occur at the end of each quarter). Ridley Ltd. does not have a minimal cash balance requirement and does not have any outstanding loan at the beginning of Quarter 1. What is Ripley Ltd.'s forecasted borrowing at the end of Quarter 2? A. borrowing =$35,500 B. borrowing =$35,000 C. borrowing =$34,500 D. borrowing =$33,500 E. borrowing =$10,500 Beautiful Bells' budgeted direct material cost for glass bells is $21,000, based on a forecasted volume of 15,000 units. Due to a reduction in demand, the actual production level in October is 14,000 units. The actual direct material cost for October is $18,000. Based on a flexible budgeting system, the direct materials variance in October is: A. There is no direct materials variance B. $1,400 unfavourable C. $1,600 favourable D. $3,000 favourable E. $1,400 favourable Dr Weyland operates four cosmetic surgeries across Sydney. He is preparing a budget for his surgeries in order to determine how many additional cosmetic surgeons he needs to recruit in each surgery to meet growing demands. This is an example of which functions of budgeting? A. Costing products B. Test alternative actions C. Control and evaluation D. Plan resource usage E. Communicate strategy