1)Assume that the amount of one of a company’s fixed expenses in its flexible budget is $46,000

1)Assume that the amount of one of a company’s fixed expenses in its flexible budget is $46,000. The actual amount of the expense is $49,400 and the amount in the company’s planning budget is $46,000. The spending variance for this expense is:

Multiple Choice

• $0.

• $3,400 U.

• $6,800 U.

• $3,400 F.

2)Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects cash sales of $35,500 and $39,000, respectively. It also expects credit sales of $55,500 and $65,500, respectively. The company expects to collect 45% of its credit sales in the month of the sale, 50% in the following month, and 5% is deemed uncollectible. What amount of cash collections would appear in the company’s cash budget for the second month?

Multiple Choice

$96,225

$29,475

$98,250

$93,450

3)Blue-Red Company started 7,200 units during the month of March. There were 1,840 units in the beginning work in process inventory and 2,840 units in the ending work in process inventory. Calculate units completed and transferred out during March.

4)A U.S. Corp. purchased machine from a French firm on July 1, 2019, when a Euro cost $0.75. The U.S. firm will be required to pay the French manufacturer 200,000 Euros on August 1, 2019, when the Euro costs $0.69, the journal entry on July 1 includes: