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11.Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked):

Rent (fixed)		$3,000
Supplies (variable)		$5.30	q
Utilities (mixed)		$150 + $0.75	q

The companys planned level of activity was 2,000 hours and its actual level of activity was 1,850 hours. How much supplies expense would be included in the flexible budget?

Multiple Choice

• $10,105

• $9,805

• $10,600

• $11,395

12.

Assume the following information:

	Amount				Per Unit
Sales	$	300,000				$	40
Variable expenses		112,500					15
Contribution margin		187,500				$	25
Fixed expenses		51,000
Net operating income	$	136,500

The unit sales to attain a target profit of $204,000 is:

Multiple Choice

• 11,369 units.

• 17,000 units.

• 10,200 units.

• 11,900 units.

13.

Assume that Junes production budget showed required production of 435,000 units, desired ending finished goods inventory of 26,000 units, and beginning finished goods inventory 11,000 units. What were Junes budgeted unit sales?

Multiple Choice

• 420,000 units

• 413,500 units

• 450,000 units

• 465,500 units

14.

Assume the following information:

	Amount				Per Unit
Sales	$	300,000				$	40
Variable expenses		112,500					15
Contribution margin		187,500				$	25
Fixed expenses		76,000
Net operating income	$	111,500

The dollar sales to break-even is:

Multiple Choice

• $121,600.

• $202,667.

• $111,500.

• $95,000.

15.

Assume a merchandising companys estimated sales for January, February, and March are $112,000, $132,000, and $122,000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise inventory equal to 30% of next months cost of goods sold. It pays for 20% of its merchandise purchases in the month of the purchase and the remaining 80% in the subsequent month. What are the cash disbursements for merchandise purchases that would appear in the companys cash budget for February?

Multiple Choice

• $75,120

• $69,120

• $72,120

• $74,120

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