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1-Marigold Industries purchases Solvate, a chemical compound used in several of its products, from ChemMaster. ChemMaster has just increased the list price of Solvate to $6.00 per gallon. However, because Marigold purchases a high volume of Solvate, ChemMaster grants the company a 10 percent discount off the list price. Charges for shipping Solvate from ChemMaster to Marigold's factory are $190 for a shipment of twenty-five 42-gallon drums. Special storage requirements cost $0.53 per gallon. Calculate Marigold's standard price for a gallon of Solvate. (Round answer to 2 decimal places, e.g. 3.51.)

Standard price per gallon:

2- Interpretive Dimensions provides sign language interpreters for major business conferences. Interpreters are paid an hourly rate of $23.00. Fringe benefits are estimated to be 32 percent of wages, and employment taxes amount to 12 percent of wages. Calculate the standard hourly rate for an interpreter. (Round answer to 2 decimal places, e.g. 52.75.)

Standard rate per hour

3- Which of the following does not use information from the selling and administrative expense budget? - Manufacturing overhead budget -Budgeted income statement -Cash budget -All of these budgets use information from the selling and administrative expense budget

4- Which of the following is a use of the materials purchases budget? - It helps managers minimize the resources invested in inventory. -It helps managers plan the quantity and timing of purchases of material -It helps ensure the adequate level of inventory. -All of these answer choices are correct.

5- Total budgeted manufacturing overhead flows to the - ending inventory and cost of goods sold budget. -production budget.- cash budget. -all of these answer choices are correct.

6- Trail Industries is preparing its cash budget for the third quarter of the current year. Sales for the third quarter are budgeted at $870,000 ($290,000 per month). Sales are 80% cash, with the remaining 20% on credit which is collected in the month following the month of sale. On June 30, the cash balance is $48,000, and the Accounts Receivable (all related to June sales) balance is $51,000. Operating expenses for the quarter are budgeted at $464,000, which includes $18,000 of depreciation. Cash expenses are paid in the month incurred. Cash purchases for merchandise inventory are budgeted at $392,000 for the quarter. What is the projected cash balance at the end of the third quarter? - $73,000 -$113,000 -$4,000 -$131,000

7- To prepare a pro-forma income statement, information is pulled from - The general ledger. -The trial balance. -Components of the master budget. -None of these answer choices are correct.

8- Alexa Industries has the following amounts budgeted for selling and administrative expenses for February:

Advertising	$78,600
Utilities	56,200
Office equipment depreciation	14,800
Bad debts	6,400
Supplies	13,200

What amount will Alexa report on its February pro-forma income statement for selling and administrative expenses? - $156,000 -$169,200 -$148,000 -$154,400

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